v3.26.3
Basic and Diluted Net Income Per Share
 9 Months Ended
Sep. 30, 2026
Earnings Per Share [Abstract]  
Basic and Diluted Net Income Per Share
Note 13. Basic and Diluted Net Income Per Share
The Company computes net income per share using the two-class method required for multiple classes of common stock and participating Series A Convertible Preferred Stock. The Company’s Series A Convertible Preferred Stock (“Preferred Stock”) participates in dividends declared on an as-converted basis. Basic net income per share is computed by dividing the net income attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by giving effect to all potential shares of common stock, stock options, restricted stock units, performance stock units, ESPP, convertible notes, and Preferred Stock, to the extent dilutive.
The following table sets forth the computation of the Company’s basic and diluted net income per share of common stock (in thousands, except per share data):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Numerator
Net income$569,700 $17,559 $639,433 $20,424 
Less: Dividends declared for Preferred Stock(93)— (204)— 
Less: Undistributed earnings allocated to Preferred Stock(4,910)— (5,389)— 
Net income attributable to common stockholders – Basic$564,697 $17,559 $633,840 $20,424 
Denominator
Weighted-average common shares outstanding for basic net income per share83,859 90,141 84,187 90,619 
Effect of dilutive securities:
Shares of common stock issuable under equity incentive awards outstanding3,085 1,080 2,166 949 
Shares of common stock related to convertible preferred stock743 743 743 743 
Weighted-average common shares outstanding for diluted net income per share87,687 91,964 87,096 92,311 
Basic net income per share$6.73 $0.19 $7.53 $0.23 
Diluted net income per share$6.50 $0.19 $7.34 $0.22 
The following table summarizes the potentially dilutive common shares that were excluded from diluted weighted-average common shares outstanding because including them would have had an anti-dilutive effect (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Shares of common stock issuable under equity incentive plans outstanding3,146 6,841 4,083 7,016 
Shares of common stock related to convertible preferred stock— — — — 
Potential common shares excluded from diluted net income per share3,146 6,841 4,083 7,016