Earnings Per Share

9 Months Ended

Sep. 30, 2026

Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during the period.

The number of shares used to calculate the diluted earnings per share is computed by using the basic weighted-average number of common shares outstanding plus any potentially dilutive common shares outstanding during the period, except when their effect is anti-dilutive. Dilutive potential common shares include outstanding stock-based awards, and the dilutive effect of the convertible senior notes, if applicable.

As announced in May 2021, the Company’s Board of Directors authorized a $300.0 million share repurchase program. In November 2025, the Company’s Board of Directors authorized an increase of an additional $300.0 million under the share repurchase program. During the three and nine months ended September 30, 2026, the Company repurchased 269,018 and 944,687 shares of common stock for $26.7 million and $73.4 million, respectively, under the share repurchase program. During the three and nine months ended September 30, 2025, the Company repurchased 243,174 and 951,098 shares of common stock for $10.0 million and $35.0 million, respectively. The Company’s practice is to retire the shares repurchased.

A reconciliation of shares used in calculating basic and diluted earnings per share follows (in thousands, except per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income	$	124,013	$	74,660	$	274,255	$	180,177
Shares:
Total weighted-average basic shares outstanding	21,364		23,222		21,547		23,534
Dilutive effect of stock-based awards	674		220		613		154
Dilutive effect of convertible senior notes(1)	217		78		294		101

Total weighted-average dilutive shares outstanding	22,255		23,520		22,454		23,789

Basic earnings per share	$	5.80	$	3.22	$	12.73	$	7.66
Diluted earnings per share	$	5.57	$	3.17	$	12.21	$	7.57

_______________________

(1)On July 22, 2026, the Company issued a notice of redemption for all of its outstanding convertible senior notes due 2029 and elected to settle any conversions in cash. On and after the notice date, the dilutive effect of the convertible senior notes was excluded from the calculation of diluted earnings per share for the three and nine months ended September 30, 2026, as the settlement of the notes, whether upon conversion or redemption, would be made in cash and would not result in any issuance of shares. As of September 30, 2026, the Company had no convertible senior notes outstanding following the full settlement of the convertible senior notes on September 24, 2026. Refer to Note 7: Borrowings for further details.