Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock and dilutive potential common stock equivalents then outstanding. Dilutive potential common stock equivalents include the assumed exercise, vesting and issuance of employee stock awards using the treasury stock method, as well as common stock issuable upon assumed conversion of our convertible senior notes due 2025 (the “2025 Notes”) up until its maturity date on August 15, 2025, and our convertible senior notes due 2028 (the “2028 Notes”) using the if-converted method. If the results are in a net loss position, diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding for the period, without consideration for potential dilutive common stock equivalents.

The following table shows the computation of basic and diluted net income (loss) per share for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,					Six Months Ended June 30,
(In thousands except per share data)	2026			2025		2026		2025
Numerator:
Net income (loss), basic	$	(83,420	)	$	63,688	$	103,175	$	17,104
Add: interest expense on 2025 Notes, net of tax effect		—			697		—		1,396
Add: interest expense on 2028 Notes, net of tax effect		—			873		2,850		1,748
Net income (loss), diluted	$	(83,420	)	$	65,258	$	106,025	$	20,248
Denominator:
Weighted-average shares used to compute basic net income (loss) per share		73,421			62,865		73,789		62,787
Dilutive effect of 2025 Notes		—			11,149		—		11,150
Dilutive effect of 2028 Notes		—			9,955		9,955		9,955
Dilutive effect of options and awards granted under equity incentive plan and employee stock purchase plan		—			449		785		435
Dilutive effect of outstanding warrant		—			34		—		15
Weighted-average shares used to compute diluted net income (loss) per share		73,421			84,452		84,529		84,342
Net income (loss) per share
Basic	$	(1.14	)	$	1.01	$	1.40	$	0.27
Diluted	$	(1.14	)	$	0.77	$	1.25	$	0.24

The following common stock equivalents were not included in the computation of diluted net income (loss) per share because their effect was anti-dilutive for the periods presented:


	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2026		2025		2026		2025
Outstanding options and awards granted under equity incentive plan and employee stock purchase plan		1,958		1,630		1,388		1,389
Outstanding 2028 Notes		9,955		—		—		—
Total		11,913		1,630		1,388		1,389