Net Income Per Share

6 Months Ended

Jun. 30, 2026

6. NET INCOME PER SHARE

Basic and diluted net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period. The number of diluted shares reflects the potential dilution that could occur if holders of in-the-money options and warrants were to exercise their right to convert these instruments into common stock and unvested restricted stock units (“RSUs”) were to vest. Additionally, performance-based RSUs are considered contingent shares; therefore, at each reporting date we determine the probable number of shares that will vest and include these contingently issuable shares in our diluted share calculation unless they are anti-dilutive. Once these performance-based RSUs vest, they are included in our basic net income per share calculation.

The following table presents a reconciliation of basic and diluted net income per share, including the number of dilutive equity awards included in the dilutive net income per share computation (in thousands):


	For the Thirteen Weeks Ended				For the Twenty-Six Weeks Ended
	June 30, 2026		July 1, 2025		June 30, 2026		July 1, 2025
Numerator:
Net income	$	18,782	$	22,208	$	27,816	$	35,700
Denominator:
Weighted-average shares outstanding – basic		21,042		22,220		21,100		22,452
Dilutive effect of equity awards		847		742		804		678
Weighted-average shares outstanding – diluted		21,889		22,962		21,904		23,130

Net income per share:
Basic	$	0.89	$	1.00	$	1.32	$	1.59
Diluted	$	0.86	$	0.97	$	1.27	$	1.54

For each of the thirteen weeks ended June 30, 2026 and July 1, 2025, there was approximately 0.4 million, of common stock equivalents excluded from the calculation of diluted net income per share because they were anti-dilutive. For each of the twenty-six weeks ended June 30, 2026 and July 1, 2025, there were approximately 0.5 million and 0.6 million, respectively, of common stock equivalents excluded from the calculation of diluted net income per share because they were anti-dilutive.