Basic net income per share is computed by dividing the net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and convertible preferred stock, to the extent dilutive.

The following table sets forth the computation of the Company’s basic and diluted net income per share of common stock (in thousands, except per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Numerator
Net income	$	39,115	$	13,193	$	69,733	$	2,865
Denominator
Weighted-average common shares outstanding for basic net income per share	84,049		90,710		84,354		90,861
Effect of dilutive securities:
Shares of common stock issuable under equity incentive awards outstanding	1,827		603		1,706		884
Shares of common stock related to convertible preferred stock	743		743		743		743

Weighted-average common shares outstanding for diluted net income per share	86,619		92,056		86,803		92,488
Basic net income per share	$	0.47	$	0.15	$	0.83	$	0.03
Diluted net income per share	$	0.45	$	0.14	$	0.80	$	0.03

The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025
Shares of common stock issuable under equity incentive plans outstanding	4,187	7,074	4,551	7,102
Shares of common stock related to convertible preferred stock	—	—	—	—

Potential common shares excluded from diluted net income per share	4,187	7,074	4,551	7,102