Net Income per Share

3 Months Ended

Mar. 31, 2026

11. Net Income per Share

The Company computed basic net income per share based on the weighted average number of shares of common stock

outstanding during the period. The Company computed diluted net income per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive common stock equivalents outstanding during the period. For the purposes of this calculation, stock options, restricted stock units, performance stock units, and stock sold through the ESPP are considered common stock equivalents.

A reconciliation of the numerator and denominator used in the calculation of the basic and diluted net income per share is as follows (in thousands, except share and per share amounts):


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	32,584	$	39,223



Denominator:
Weighted average shares used to compute net income attributable to common stockholders:
Basic	39,275,424		38,562,191
Potential dilutive stock-based options and awards	268,356		601,237

Diluted	39,543,780		39,163,428
Net income per share:
Basic	$	0.83	$	1.02
Diluted	$	0.82	$	1.00

For the three months ended March 31, 2026 and 2025, an immaterial amount of outstanding stock-based awards were excluded from the computation of diluted net income per share because their effect was anti-dilutive.