Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the treasury share method, by giving effect to the potential dilution that could occur if securities or other contracts to issue common shares were exercised and converted into common shares during the period. Restricted stock units issued under the Company’s stock-based employee compensation plans are included in diluted shares upon the granting of the awards even though the vesting of shares will occur over time.

The following table sets forth the reconciliation of numerators and denominators of basic and diluted earnings per share computations for the three and nine months ended September 30, 2026 and 2025 (in thousands, except per share amounts):


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2026		2025		2026		2025
Numerator:
Net income	$	107,304	$	80,314	$	303,461	$	229,408
Denominator:
Total weighted average basic shares		24,875		24,955		24,877		25,307
Shares applicable to stock-based compensation		1,559		1,517		1,532		1,574
Total weighted average diluted shares		26,434		26,472		26,409		26,881
Earnings per common share:
Earnings per common share – basic	$	4.31	$	3.22	$	12.20	$	9.07
Earnings per common share – diluted	$	4.06	$	3.03	$	11.49	$	8.53

For the three months ended September 30, 2026 and 2025, there were 16,972 and 188,817 shares of common stock underlying stock options, respectively, and 1,473 and 0 shares of common stock underlying restricted stock units, respectively, that were excluded from the calculation of diluted net income per share because their effect would have been antidilutive. For the nine months ended

September 30, 2026 and 2025, 58,903 and 190,093 shares of common stock underlying stock options, respectively, and 497 and 3,318 shares of common stock underlying restricted stock units, respectively, were excluded from the calculation of diluted net income per share because their effect would have been antidilutive.