Net Income Per Share

6 Months Ended

Jun. 30, 2026

Basic net income per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period and excludes any dilutive effects of employee stock-based awards and potential shares upon conversion of the convertible senior notes. Diluted net income per share is computed giving effect to all potentially dilutive shares of common stock, including common stock issuable upon exercise of stock options, vesting of RSUs and PRSUs, and shares of common stock issuable upon conversion of convertible senior notes.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):



	Three Months Ended				Six Months Ended
	June 30, 2026		June 30, 2025		June 30, 2026		June 30, 2025
Net income	$	3,367	$	1,154	$	21,779	$	1,730
Weighted-average shares used in computing basic and diluted net income per share:
Basic	75,452		76,654		75,981		76,303
Diluted	85,479		88,523		85,678		88,964
Basic and diluted net income per share:
Basic	$	0.04	$	0.02	$	0.29	$	0.02
Diluted	$	0.04	$	0.01	$	0.25	$	0.02

The Company used the if-converted method for calculating any potential dilutive effect of its convertible senior notes for the three and six months ended June 30, 2026 and 2025. Under this method, the Company calculates diluted earnings per share under both the cash and share settlement assumptions to determine which is more dilutive. If share settlement is more dilutive, the Company calculates diluted earnings per share assuming that all of the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period. The potential impact upon the conversion of the convertible senior notes was included in the calculation of diluted net income per share for the three and six months ended June 30, 2026 and 2025.