Basic net income per share is calculated by dividing Net income by the weighted-average number of shares of the Company's common stock outstanding. Diluted net income per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the DealerClub Acquisition, the Company may pay up to $88.0 million of performance-based consideration in shares of the Company's stock at a future date if mutually agreed upon. Those potential shares have been excluded from the computations below as they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period. The computation of net income per share is as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Net income	$	14,263	$	7,009	$	19,241	$	4,996
Basic weighted-average common shares outstanding		55,871		63,163		57,453		63,859
Effect of dilutive stock-based compensation awards (1)		781		679		677		617
Diluted weighted-average common shares outstanding		56,652		63,842		58,130		64,476
Net income per share, basic	$	0.26	$	0.11	$	0.33	$	0.08
Net income per share, diluted		0.25		0.11		0.33		0.08

(1)

There were 3,608 and 3,510 potential common shares excluded from diluted weighted-average common shares outstanding for the three months ended June 30, 2026 and 2025, respectively, and 4,115 and 3,508 potential common shares excluded from diluted weighted-average common shares outstanding for the six months ended June 30, 2026 and 2025, respectively, as their inclusion would have had an anti-dilutive effect.