| Earnings Per Share [Text Block] |
Note 3—Net Income (Loss) Per Share
Basic net income (loss) per share (“Basic EPS”) is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net loss per share (“Diluted EPS”) is computed by dividing net income (loss) by the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Our potentially dilutive securities include common shares related to our stock options calculated using the treasury stock method and convertible senior notes calculated using the if-converted method. In periods where we have a net loss from continuing operations but overall net income, we do not compute Diluted EPS because the effect would be antidilutive. When there is a net loss, potentially dilutive securities, like stock options or convertible debt, are typically excluded from the diluted net loss per share calculation. Potentially dilutive securities excluded from Diluted EPS are calculated based on a weighted average of days in the quarter from when the respective transactions occurred and are shown as follows:
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Three Months Ended
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Six Months Ended
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June 30,
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June 30,
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2026
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2025
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2026
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2025
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2029 Notes convertible to common stock (1)(2)
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11,084,027 |
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5,915,742 |
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11,267,933 |
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2,974,213 |
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2026 Notes convertible to common stock (1)(3)
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— |
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3,280,240 |
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— |
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4,281,266 |
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Outstanding options to purchase common stock
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6,410,110 |
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981,651 |
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6,588,423 |
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2,790,290 |
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Share-settled liability (4)
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— |
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552,662 |
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— |
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277,858 |
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Total potentially dilutive shares excluded from net income (loss) per share
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17,494,137 |
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10,730,295 |
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17,856,356 |
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10,323,627 |
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(1)
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On May 14, 2025, we completed the exchange of $70.8 million aggregate principal amount of 2026 Notes for 2029 Notes on a one-for-one basis in the Convertible Note Exchange (as defined below) and recorded a reduction of an additional $10.0 million aggregate principal amount of our 2026 Notes which were equitized in three tranches in 2025.
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(2) |
On June 17, 2026, we entered into agreements for the repurchase of $16.0 million aggregate principal amount of 2029 Notes from certain noteholders. We completed the repurchase on July 6, 2026.
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(3) |
The 2026 Notes were subject to a capped call arrangement that potentially reduced the dilutive effect of conversion. Any potential impact from the capped call arrangement is excluded from this table. The remaining outstanding 2026 Notes were fully repaid at maturity on February 15, 2026.
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(4) |
On May 12, 2025, the Company entered into note conversion agreements to exchange $10.0 million aggregate principal of 2026 Notes for shares in our common stock reducing the effect of dilution on these notes. The note conversion agreements provided for delivery of the common stock in three tranches. The above calculation reflects the equitization of the three tranches in 2025.
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For further discussion of these transactions see “Note 6 — Debt.”
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