Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period.

The number of shares used to calculate the diluted earnings per share is computed by using the basic weighted-average number of common shares outstanding plus any potentially dilutive common shares outstanding during the period, except when their effect is anti-dilutive. Dilutive potential common shares include outstanding stock-based awards, and the dilutive effect of the convertible senior notes, if applicable.

As announced in May 2021, the Company’s Board of Directors authorized a $300.0 million share repurchase program. In November 2025, the Company’s Board of Directors authorized an increase of an additional $300.0 million under the share repurchase program. During the three and six months ended June 30, 2026, the Company repurchased 330,121 and 675,669 shares of common stock for $26.7 million and $46.7 million, respectively, under the share repurchase program. During the three and six months ended June 30, 2025, the Company repurchased 418,499 and 707,924 shares of common stock for $15.0 million and $25.0 million, respectively. The Company’s practice is to retire the shares repurchased.

A reconciliation of shares used in calculating earnings per basic and diluted shares follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	63,999	$	58,721	$	150,242	$	105,517
Shares:
Total weighted-average basic shares outstanding	21,554		23,507		21,640		23,692
Dilutive effect of stock-based awards	571		71		582		121
Dilutive effect of convertible senior notes	666		—		333		113

Total weighted-average dilutive shares outstanding	22,791		23,578		22,555		23,926

Basic earnings per share	$	2.97	$	2.50	$	6.94	$	4.45
Diluted earnings per share	$	2.81	$	2.49	$	6.66	$	4.41