Basic net income per share is computed using the weighted average number of common shares outstanding during the applicable period. Diluted net income per share is computed using the weighted average number of common shares outstanding during the period, plus the dilutive effect of potential common stock. Potential common stock consists of shares issuable pursuant to stock awards, convertible senior notes and warrants issued by the Company. The dilutive effect of outstanding stock awards is reflected in diluted earnings per share by application of the treasury stock method and the dilutive effect of the convertible securities is reflected in diluted earnings per share by application of the if-converted method.

The components used in the computation of basic and diluted net income per share for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands, except per share data):


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2026		2025		2026		2025
Numerator:
Net income	$	79,404	$	103,618	$	185,723	$	226,789
Denominator:
Shares used for basic net income per share	144,660		144,757		144,965		146,905
Effect of dilutive securities:

Stock awards	3,673		492		3,543		1,251
Convertible senior notes	5,353		—		3,346		—
Warrants related to issuance of convertible senior notes	—		—		—		—
Shares used for diluted net income per share	153,686		145,249		151,854		148,156
Basic net income per share	$	0.55	$	0.72	$	1.28	$	1.54
Diluted net income per share	$	0.52	$	0.71	$	1.22	$	1.53

For the three and six months ended June 30, 2026 and 2025, certain potential outstanding shares from service-based stock awards and warrants were excluded from the computation of diluted net income per share because the effect of including these items was anti-dilutive. Additionally, certain market- and performance-based stock awards were excluded from the computation of diluted net income per share because the underlying market and performance conditions for such stock awards had not been met as of these dates. The number of potentially outstanding shares excluded from the computation of diluted net income per share for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):


	For the Three Months Ended June 30,		For the Six Months Ended June 30,
	2026	2025	2026	2025

Service-based stock awards	365	2,389	3,119	5,066
Market- and performance-based stock awards	1,795	1,583	1,798	1,583

Warrants related to issuance of convertible senior notes	56,320	50,552	47,390	41,279
Total shares excluded from computation	58,480	54,524	52,307	47,928