The Company calculates basic earnings per share by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. For calculating diluted earnings per share, the Company uses the treasury stock method for options to purchase common stock, time-based restricted stock units (“RSUs”), and performance-based restricted stock units (“PSUs”) and the if-converted method for the Convertible Senior Notes. RSUs and PSUs are collectively referred to as “Stock Awards.”

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share for the periods presented (in thousands, except share and per share amounts):


	Three Months Ended				Nine Months Ended
	April 30,				April 30,
	2025		2024		2025		2024
Numerator:
Net income (loss)	$	45,991	$	(5,478)	$	17,853	$	(22,862)
Net income (loss) per share:
Basic	$	0.55	$	(0.07)	$	0.21	$	(0.28)
Diluted	$	0.54	$	(0.07)	$	0.21	$	(0.28)

Denominator:
Weighted average shares used in computing net income (loss) per share:





Basic	84,044,661		82,500,109		83,671,443		82,105,357
Weighted average effect of dilutive stock options	86,029		—		89,946		—
Weighted average effect of dilutive stock awards	1,749,953		—		1,893,514		—

Diluted	85,880,643		82,500,109		85,654,903		82,105,357

The following weighted average shares of potential common stock were excluded from the computation of diluted net income (loss) per share for the periods presented because including them would have been anti-dilutive:


	Three Months Ended		Nine Months Ended
	April 30,		April 30,
	2025	2024	2025	2024
Stock options	—	181,646	—	184,000
Stock awards	—	3,764,735	—	3,846,177
Convertible senior notes	—	3,550,532	—	3,516,480

During the three and nine months ended April 30, 2025, there was no dilutive effect on net income (loss) per share due to maturity and settlement of the outstanding principal balance of the 2025 Convertible Senior Notes. During the three months ended April 30, 2024, the average market price of the Company’s common stock exceeded the initial conversion price of the 2025 Convertible Senior Notes; however, the conversion premium was excluded from the computation of diluted net income (loss) per share as it would be anti-dilutive due to the net loss incurred in this period. During the nine months ended April 30, 2024, the average market price of the Company’s common stock did not exceed the initial conversion price of the 2025 Convertible Senior Notes.

During the three and nine months ended April 30, 2025, the average market price of the Company’s common stock did not exceed the initial conversion price of the 2029 Convertible Senior Notes.