v3.26.1
Net Income Per Share
 6 Months Ended
Jun. 30, 2026
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
The following table presents the basic and diluted net income per share:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands, except per share data)
Basic Net Income Per Share:
Net income$19,369 $11,139 $23,781 $1,505 
Weighted-average common shares outstanding used to compute basic net income per share143,024 141,654 143,281 141,752 
Basic net income per share$0.14 $0.08 $0.17 $0.01 
Diluted Net Income Per Share:
Net income used to calculate diluted income per share$19,369 $11,139 $23,781 $1,505 
Denominator:
Weighted-average common shares used to compute basic net income per share143,024 141,654 143,281 141,752 
Dilutive effect of weighted-average restricted stock units1,830 3,419 2,086 4,268 
Dilutive effect of weighted-average common stock options1,664 1,959 1,641 2,023 
Dilutive effect of weighted-average performance stock units632 1,224 591 1,106 
Dilutive effect of weighted-average Employee Stock Purchase Plan ("ESPP") shares22 4 24 35 
Weighted-average shares used to compute diluted net income per share147,172 148,260 147,623 149,184 
Diluted net income per share$0.13 $0.08 $0.16 $0.01 
The following weighted-average shares have been excluded from the calculation of diluted net income per share attributable to common stockholders for each period presented because they were anti-dilutive:
Three Months EndedSix Months Ended
June 30, 2026June 30, 2025June 30, 2026June 30, 2025
(in thousands)(in thousands)
Unvested restricted stock units— — — — 
Options to purchase common stock— — — — 
Unvested performance stock units— — — — 
ESPP shares
— — — — 
Convertible Senior Notes— 3,210 1,320 3,210 
Total shares excluded from diluted net income per share— 3,210 1,320 3,210 
The following table presents the achievement levels for the performance stock units as of June 30, 2026, using actual achievement levels for the tranches for which the performance period had been completed and expected achievement levels for ongoing performance periods:
Tranche 1
Tranche 2
Tranche 3
Award Year:
20210%0%0%
2023*
126%——
2024150%150%149%
202580%77%77%
202679%79%79%
* The performance stock units granted during 2023 vested on January 1, 2026 with an achievement of approximately 126%.
The following table presents the achievement levels for the performance stock units as of June 30, 2025, using actual achievement levels for the tranches for which the performance period had been completed and expected achievement levels for ongoing performance periods:
Tranche 1
Tranche 2
Tranche 3
Award Year:
20210%0%0%
2023150%——
2024150%150%150%
2025150%150%150%
These expected and actual achievement levels as of June 30, 2026 and 2025 are included in the calculation of weighted-average shares in the net income per share tables above. Refer to Note 11 for additional information related to performance stock units.
For the six months ended June 30, 2026 and 2025, the number of shares that would be issuable assuming conversion of all of the Convertible Senior Notes (as defined in Note 9) was approximately 1,319,707 and 3,210,098, respectively, and were excluded from the calculation of diluted net income per share because they were anti-dilutive. The Convertible Senior Notes had an initial conversion rate of 15.6539 shares of common stock per $1,000 principal amount of the Convertible Senior Notes, which was subject to anti-dilution adjustments in certain circumstances. On March 15, 2026, the Convertible Senior Notes matured, and no Convertible Senior Notes remained outstanding at June 30, 2026.