Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by factoring in potentially dilutive common stock equivalents outstanding during the period, provided their effect is dilutive. Potentially dilutive common shares include shares issuable upon the exercise of stock options, the vesting of RSUs and PSUs, each purchase under the 2016 ESPP, and common stock issuable upon the conversion of convertible debt under the if-converted method.

In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is antidilutive and therefore excluded.

The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows:


	Fiscal Year Ended July 31,
	2024			2025		2026
	(in thousands, except per share data)
Numerator:
Net (loss) income	$	(124,775	)	$	188,366	$	1,506,837
Add: Interest expense related to convertible senior notes, net of tax		—			3,173		4,403
Diluted net (loss) income	$	(124,775	)	$	191,539	$	1,511,240
Denominator:
Weighted average shares, basic		244,743			267,479		268,691
Add: Dilutive effect of common stock equivalents		—			26,604		23,492
Weighted average shares, diluted		244,743			294,083		292,183

Net (loss) income per share attributable to Class A common stockholders, basic	$	(0.51	)	$	0.70	$	5.61
Net (loss) income per share attributable to Class A common stockholders, diluted	$	(0.51	)	$	0.65	$	5.17

The following shares of common stock were excluded from the computation of diluted net income (loss) per share for the periods presented, as their effect would have been antidilutive:


	Fiscal Year Ended July 31,
	2024		2025		2026
	(in thousands)
Outstanding stock options, RSUs and PSUs		22,433		839		5,906
Employee stock purchase plan		1,148		64		136
Common stock issuable upon the conversion of convertible notes		39,423		—		—
Total		63,004		903		6,042

Shares that will be issued in connection with our stock awards and shares that will be purchased under the employee stock purchase plan are generally automatically converted into shares of our Class A common stock. Common stock issuable upon the conversion of convertible notes represents the antidilutive impact of the 2026 Notes and 2027 Notes under the if-converted method.