We compute basic earnings per share using the weighted average number of common shares outstanding. We compute diluted earnings per share using the weighted average number of common shares outstanding plus the effect of outstanding dilutive stock options, restricted stock units, and deferred stock units, using the treasury stock method and the effect of our convertible debt using the if-converted method. The following table sets forth the calculation of basic and diluted earnings per share on an interim basis:


	Three Months Ended				Six Months Ended
(in thousands, except per share data)	May 31, 2026		May 31, 2025		May 31, 2026		May 31, 2025
Net income	$	21,073	$	17,029	$	43,886	$	27,975
Weighted average shares outstanding	41,901		43,053		42,028		43,154
Effect of dilution from common stock equivalents	409		1,043		491		1,104
Effect of dilution from if-converted convertible notes	—		60		—		264
Diluted weighted average shares outstanding	42,310		44,156		42,519		44,522

Earnings per share:
Basic	$	0.50	$	0.40	$	1.04	$	0.65
Diluted	$	0.50	$	0.39	$	1.03	$	0.63

We excluded stock awards representing approximately 4,289,000 and 3,888,000 shares of common stock from the calculation of diluted earnings per share in the three and six months ended May 31, 2026, respectively, as these awards were anti-dilutive. We excluded stock awards representing approximately 776,000 and 586,000 shares of common stock, from the calculation of diluted earnings per share in the three and six months ended May 31, 2025, respectively, as these awards were anti-dilutive.

The dilutive impact of the Notes on our calculation of diluted earnings per share is measured using the if-converted method. However, because the principal amount of the 2026 Notes was settled in cash and the principal amount of the 2030 Notes will be settled in cash, the dilutive impact of applying the if-converted method is limited to the in-the-money portion, if any. During the three and six months ended May 31, 2026, we excluded the Notes in our diluted earnings per share calculation because the conversion feature in the Notes was out of the money. During the three and six months ended May 31, 2025, we included the 2026 Notes in our diluted earnings per share calculation and we excluded the 2030 Notes in our diluted earnings per share calculation because the conversion feature in the 2030 Notes was out of the money.