Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed in a similar manner, but it also includes the effect of potential common shares outstanding during the period, when dilutive.


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(In thousands, except per share data)
Numerator:
Net income	$	36,079	$	37,052	$	28,673	$	66,782

Notes due 2028 and Notes due 2026 financing costs, net	247		625		—		1,230

Adjusted net income	$	36,326	$	37,677	$	28,673	$	68,012

Denominator:

Weighted average common shares outstanding used for basic calculation	131,963		131,031		131,652		131,447
Effect of dilutive securities:
Employee stock-based awards	1,141		113		1,136		197





Notes due 2026	—		2,057		—		2,057

Notes due 2028	2,018		2,018		—		2,018

Weighted average common shares outstanding used for diluted calculation	135,122		135,219		132,788		135,719

Basic and diluted net income per share:
Net income per share, basic	$	0.27	$	0.28	$	0.22	$	0.51
Net income per share, diluted	$	0.27	$	0.28	$	0.22	$	0.50

Diluted earnings per share for the three months ended June 30, 2026 included the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2028. Diluted earnings per share for the six months ended June 30, 2026 included the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, and ESPP. Diluted earnings per share for the three and six months ended June 30, 2025 includes the dilutive effect of potentially dilutive common shares by application of the treasury stock method for stock options, RSUs, PSUs, ESPP, and includes potentially dilutive common shares by application of the if-converted method for the Notes due 2026 and Notes due 2028. To the extent potential common shares are antidilutive, they are excluded from the calculation of diluted net income per share.

The Company under the relevant sections of the indenture, irrevocably may elect to settle principal in cash and any excess conversion value in cash or shares of the Company’s common stock for the Notes due 2028. If and when the Company makes such election, there would be no adjustment to net income and the Company would use the average share price to determine the potential number of shares issuable upon an assumed conversion to be included in the diluted share count.

The Notes due 2026 were convertible at any time from September 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date of March 1, 2026. Upon conversion, the Company had elected, on August 28, 2025, to settle the Notes due 2026 with a combination settlement method, whereby the principal amount would have been settled in cash and any excess conversion value would have been settled in shares of the Company's common stock. As a result, after the election date, there was no adjustment to net income and the Company used the average share price to determine the potential number of shares issuable upon an assumed conversion to be included in the diluted share count.


	Three Months Ended June 30,		Six Months Ended June 30,
	2026	2025	2026	2025

	(In thousands)



Employee stock-based awards	2,348	3,368	2,028	3,434
2025 Warrants	—	940	—	685
Notes due 2025	—	—	—	618


2026 Warrants	1,807	15,663	1,931	12,936
Notes due 2028	—	—	2,018	—
2028 Warrants	2,018	15,369	2,018	12,693
Total	6,173	35,340	7,995	30,366