| Net Loss Per Share |
3. Net Income (Loss) Per Share The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 (1) | Numerator: | | | | | | | | | | | | | Net income (loss) | | $ | 51,291 | | $ | 23,599 | | $ | 92,064 | | $ | (13,787) | Add back interest expense, net of tax benefit, on assumed
conversion of 2026 Convertible Notes | | | — | | | 692 | | | — | | | — | Numerator used in computing net income (loss) per share — basic & diluted | | $ | 51,291 | | $ | 24,291 | | $ | 92,064 | | $ | (13,787) | | | | | | | | | | | | | | Denominator: | | | | | | | | | | | | | Weighted average number of common shares outstanding used in computing net income (loss) per share — basic | | | 164,405 | | | 161,723 | | | 163,930 | | | 161,350 | Effect of dilutive securities: | | | | | | | | | | | | | Time-based restricted stock units | | | 2,179 | | | 53 | | | 2,480 | | | — | Performance-based restricted stock units | | | 336 | | | 94 | | | 347 | | | — | Restricted stock | | | 259 | | | 33 | | | 279 | | | — | 2026 Convertible Notes assumed conversion | | | — | | | 14,934 | | | — | | | — | Dilutive potential common shares | | | | | | | | | | | | | Weighted average number of common shares outstanding used in computing net income (loss) per share — diluted | | | 167,179 | | | 176,837 | | | 167,036 | | | 161,350 | Net income (loss) per share — basic | | $ | 0.31 | | $ | 0.15 | | $ | 0.56 | | $ | (0.09) | Net income (loss) per share — diluted | | $ | 0.31 | | $ | 0.14 | | $ | 0.55 | | $ | (0.09) |
| (1) | During the six months ended June 30, 2025, the Company was in a net loss position. In fiscal periods with a net loss, basic and diluted earnings per share are identical because inclusion of potentially dilutive common shares would be anti-dilutive. |
The outstanding securities set forth in the following table have been excluded from the computation of diluted weighted average shares outstanding, as applicable, as their effect would be anti-dilutive (in thousands): | | | | | | | | | | | Three Months Ended | | Six Months Ended | | | June 30, | | June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | Stock options | | 2,019 | | 3,538 | | 2,425 | | 3,499 | Restricted stock awards | | — | | — | | — | | 360 | Time-based restricted stock units | | 915 | | 6,046 | | 1,126 | | 6,516 | Performance-based restricted stock units | | — | | — | | — | | 1,638 | 2026 Convertible Notes | | — | | — | | — | | 14,934 | Total | | 2,934 | | 9,584 | | 3,551 | | 26,947 |
There was no dilutive impact of the 1.50% convertible senior notes due 2026 (the “2026 Convertible Notes”) for the three and six months ended June 30, 2026 because the Company had elected prior to the beginning of the period to settle the conversion of 2026 Convertible Notes, if any, with a combination settlement of a cash payment equal to the principal value of converted notes and shares of Class A Common Stock equal to the conversion value in excess of the principal value, if any (Note 8). Accordingly, interest expense was not removed from the numerator and there was no calculated spread added to the denominator because the average market price of the Company’s Class A Common Stock during the period was not in excess of the conversion price.
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