Basic and Diluted Income (Loss) per Common Share

9 Months Ended

Sep. 30, 2026

Basic and Diluted Income (Loss) per Common Share

14. Basic and Diluted Income (Loss) per Common Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including shares issuable upon conversion of the Company’s convertible senior notes (calculated using the if-converted method), stock options, and unvested RSUs. The Company is in a net loss position for the three and nine months ended September 30, 2025, and therefore diluted shares equals basic shares.

The components of basic and diluted income (loss) per share are as follows:


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025

	(In thousands, except share and per share amounts)
Earnings per share:


Net income (loss) attributable to common stockholders	$	5,247	$	(1,241)	$	11,752	$	(9,912)

Net income (loss) per share
Basic	$	0.16	$	(0.04)	$	0.37	$	(0.33)
Diluted	$	0.13	$	(0.04)	$	0.00	$	(0.33)
Numerator used to compute net income (loss) per share:
Basic	$	5,247	$	(1,241)	$	11,752	$	(9,912)
Net gain on extinguishment of debt, net of taxes	(745)		—		(13,206)		—
Interest expense on convertible notes, net of taxes	520		—		1,458		—
Diluted (1)	$	5,022	$	(1,241)	$	4	$	(9,912)

Weighted average number of common shares outstanding:
Basic	32,235,811		30,278,516		32,017,803		29,721,404

Convertible debt conversion	4,433,843		—		2,368,515		—
Stock options issued and outstanding	16,363		—		34,650		—
Nonvested RSUs outstanding	3,448,172		—		3,555,905		—

Diluted	40,134,189		30,278,516		37,976,873		29,721,404

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(1) Net income is adjusted for the reversal of the net gain on extinguishment of debt and add back of interest expense as part of the calculation for diluted earnings per share.

The following common share equivalents were excluded from the weighted average shares used to calculate diluted net income (loss) per common share because their effects would have been anti-dilutive:


	Nine months ended September 30,
	2026	2025
Stock options issued and outstanding	—	70,358
RSUs issued and outstanding	—	3,065,974
Convertible senior notes	—	1,537,847
Total	—	4,674,179