Basic earnings per share is calculated by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of restricted stock units, incremental common shares issuable upon exercise of stock options and shares issuable under the employee stock purchase plan. The dilutive effect of outstanding shares is reflected in diluted earnings per share using the treasury stock method, as applicable. This method includes consideration of the amounts to be paid by the employees and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.

The following table sets forth the computation of basic and diluted net income per share:


	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands, except per share amounts)	2026		2025		2026		2025
Net income per share:
Numerator:
Net income	$	74,565	$	48,377	$	202,028	$	166,615
Denominator:
Weighted-average shares outstanding - basic		107,644		107,622		108,032		107,483
Effect of potentially dilutive common shares		1,144		1,682		1,520		1,479
Weighted-average shares outstanding - diluted		108,788		109,304		109,552		108,962
Basic net income per share	$	0.69	$	0.45	$	1.87	$	1.55
Diluted net income per share	$	0.69	$	0.44	$	1.84	$	1.53