Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the treasury share method, by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.

The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and six months ended June 30, 2026 and 2025 (in thousands, except per share amounts):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Numerator:
Net income	$	105,058	$	76,149	$	196,157	$	149,094
Denominator:
Total weighted average basic shares		24,882		25,297		24,878		25,486
Shares applicable to stock-based compensation		1,392		1,349		1,465		1,576
Total weighted average diluted shares		26,274		26,646		26,343		27,062
Earnings per common share:
Earnings per common share – basic	$	4.22	$	3.01	$	7.88	$	5.85
Earnings per common share – diluted	$	4.00	$	2.86	$	7.45	$	5.51

For the three months ended June 30, 2026 and 2025, there were 59,829 and 186,854 shares of common stock underlying stock options, respectively, and 0 and 261,031 shares of common stock underlying restricted stock units, respectively, that were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. For the six months ended June 30, 2026 and 2025, 88,302 and 162,130 shares of common stock underlying stock options, respectively, and 54 and 211,499 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.