Basic earnings per share is computed using the weighted-average number of common shares outstanding. Diluted earnings per share is computed using the weighted-average number of common shares outstanding adjusted for the incremental shares attributed to outstanding stock equivalents. Stock equivalents include common shares issuable upon the exercise of stock options or the vesting of restricted stock units and other equity instruments and are computed using the treasury stock method. Under the treasury stock method, the exercise price of a share and the amount of compensation cost, if any, for future service that the Company has not yet recognized are assumed to be used to repurchase shares in the current period.

The following table sets forth the calculation of the Company’s basic and diluted earnings per share:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2026		2025		2026		2025
Net income	$	19,882	$	972	$	32,905	$	4,616

Denominator for basic earnings per share		35,898		35,991		35,833		36,021
Incremental common shares attributable to outstanding restricted stock units		499		267		508		406
Denominator for diluted earnings per share		36,397		36,258		36,341		36,427

Earnings per share:
Basic	$	0.55	$	0.03	$	0.92	$	0.13
Diluted	$	0.55	$	0.03	$	0.91	$	0.13

Restricted stock units totaling less than 0.1 million common shares for both the three and six months ended June 30, 2026 were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive. Restricted stock units totaling less than 0.1 common shares for both the three and six months ended June 30, 2025 were excluded from the computation of diluted earnings per share as their effect would have been anti-dilutive.