Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts):


	Three Months Ended
	March 31,
	2026		2025
Numerator:
Net income attributable to Travelzoo	$	2,478	$	3,167

Denominator:
Weighted average common shares—basic	10,837		11,670
Effect of dilutive securities: stock options	—		579
Weighted average common shares—diluted	10,837		12,249




Net income per share —basic	$	0.23	$	0.27




Net income per share—diluted	$	0.23	$	0.26

For the three months ended March 31, 2026, options to purchase 1.2 million shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.