Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the year. Fully vested restricted stock units, deferred stock units granted to members of the Company’s Board of Directors and the 4.7 million minimum shares issuable under stock purchase contract are included in the calculation of weighted average number of common shares outstanding.

For diluted earnings per common share, the denominator includes the dilutive effect of outstanding common share equivalents. The dilutive effects of outstanding common share equivalents, including outstanding service-based restricted stock units (“RSUs”), stock options, performance-based restricted stock units (“PSUs”), and stock purchase contracts.

The dilutive effects of service-based RSUs, stock options, and PSUs are calculated using the treasury stock method. PSUs are considered contingently issuable shares, as their vesting may be based on the achievement of specified company financial performance metrics (“attainment-based PSUs”), the satisfaction of certain market conditions (“market-based PSUs”) or a hybrid of company financial performance metrics and market conditions (“hybrid PSUs”).

The dilutive effects of market-based PSUs is included in the weighted average common share outstanding based on the number of shares, if any, that would be issuable as of the end of the reporting period, assuming the end of the reporting period is also the end of the performance period. The dilutive effects of attainment-based and hybrid PSUs is included in the weighted average common share outstanding only to the extend that the applicable performance targets have been achieved as of the end of the reporting period.

The dilutive effects of stock purchase contracts represent the difference between the minimum and the maximum number of shares issuable based on the applicable market value. The "applicable market value" is defined as weighted-average price per share of common stock over the twenty consecutive trading day period immediately preceding the balance sheet date, or November 1, 2028, for settlement of the stock purchase contracts.

The following table sets forth the computation of basic and diluted earnings per common share (in thousands, except per share amounts):


	Year Ended December 31,
	2025		2024		2023
Numerators:
Net income	$	53,829	$	64,087	$	72,878

Denominators:
Weighted average common shares outstanding— basic		36,589		35,950		35,844
Dilutive potential common shares		113		174		187
Weighted average common shares outstanding— diluted		36,702		36,124		36,031
Antidilutive potential common shares excluded from above		239		128		99

Earnings per Common Share:
Basic	$	1.47	$	1.78	$	2.03
Diluted	$	1.47	$	1.77	$	2.02

For the years ended December 31, 2025, 2024 and 2023, 209 thousand shares, 150 thousand shares, and 104 thousand shares respectively, of attainment-based PSUs and hybrid PSUs were excluded from the calculation of the denominator because they were considered contingently issuable shares and the related performance targets had not been achieved as of December 31, 2025, December 31, 2024, and December 31, 2023.