Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Fully vested restricted stock units, deferred stock units granted to members of the Company’s Board of Directors, the 4.7 million minimum shares issuable under stock purchase contracts related to the tangible equity units, and 2.1 million shares issued under the private placement are included in the calculation of weighted average number of common shares outstanding. Shares issued in the private placement increased weighted-average shares outstanding by 0.6 million and 0.3 million shares for the three and six months ended July 3, 2026, respectively. See Note 11 to the Consolidated Financial Statements for additional discussion of the stock purchase contracts related to the tangible equity units and Note 13 to the Consolidated Financial Statements for additional discussion of the shares issued under the private placement.

For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. The dilutive effects of outstanding common share equivalents, including outstanding service-based restricted stock units, stock options and performance-based restricted stock units, are determined using the treasury stock method. Performance-based restricted stock units are considered contingently issuable shares, the vesting of which may be based on achievement of specified company financial performance metrics (“attainment-based PSUs”) or a hybrid of company financial performance metrics and market conditions (“hybrid PSUs”). The dilutive effects of attainment-based and hybrid PSUs are included in the weighted average common share calculation based on the cumulative achievement against the performance targets only when the performance targets have been achieved as of the end of the reporting period.

The dilutive effects of stock purchase contracts represent the difference between the minimum and the maximum number of shares issuable based on the applicable market value. The “applicable market value” is defined as weighted-average price per share of common stock over the twenty consecutive trading day period immediately preceding the balance sheet date, or November 1, 2028, for settlement of the stock purchase contracts.

The following table sets forth the computation of basic and diluted earnings per common share (amounts in thousands, except per share data):


	Three Months Ended				Six Months Ended
	July 3,		June 27,		July 3,		June 27,
	2026		2025		2026		2025
Numerators:
Net income	$	12,541	$	4,497	$	33,640	$	25,705

Denominators:
Weighted average common shares outstanding— basic		41,009		36,022		40,714		36,023
Dilutive common share equivalents		155		54		168		80
Weighted average common shares outstanding— diluted		41,164		36,076		40,882		36,103
Antidilutive common share equivalents excluded from above		87		344		195		260

Earnings per Common Share:
Basic	$	0.31	$	0.12	$	0.83	$	0.71
Diluted	$	0.30	$	0.12	$	0.82	$	0.71

For the three and six months ended July 3, 2026, 269 thousand shares of attainment-based PSUs and hybrid PSUs were excluded from the calculation of the denominator because they were considered contingently issuable shares and the related performance targets had not been achieved as of July 3, 2026.

For the three and six months ended June 27, 2025, 291 thousand shares of attainment-based PSUs and hybrid PSUs were excluded from the calculation of the denominator because they were considered contingently issuable shares and the related performance targets had not been achieved as of June 27, 2025.