Basis of Presentation (Tables)

6 Months Ended

Dec. 31, 2025

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


		Three Months Ended December 31,					Six Months Ended December 31,
		2024			2025		2024		2025
Net income available to common stockholders		$	37,819		$	38,699	$	55,755	$	59,255
Weighted average shares outstanding—basic			16,724			16,740		16,733		16,818
Dilutive effect of equity awards			316			246		315		267
Dilutive effect of 2029 Notes			—			483		—		387
Weighted average shares outstanding—diluted			17,040			17,469		17,048		17,472
Basic earnings per share		$	2.26		$	2.31	$	3.33	$	3.52
Diluted earnings per share		$	2.22		$	2.22	$	3.27	$	3.39
Shares excluded from diluted earnings per share due to their anti-dilutive effect			9			7		5		3

The fair values of our financial assets and liabilities are categorized as follows (in thousands):


		June 30, 2025									December 31, 2025
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Assets—Insurance company contracts		$	—	$	54,437	$	—	$	54,437		$	—	$	60,517	$	—	$	60,517
Assets – Interest rate swap contract		$	—	$	932	$	—	$	932		$	—	$	292	$	—	$	292
Liabilities—Convertible notes		$	—	$	472,770	$	—	$	472,770		$	—	$	1,104,564	$	—	$	1,104,564
Liabilities—Contingent consideration		$	—	$	—	$	19,086	$	19,086		$	—	$	—	$	13,363	$	13,363

The effect of the cash flow hedges on other comprehensive income (loss) and earnings for the periods presented was as follows:


		Three Months Ended December 31,						Six Months Ended December 31,
		2024			2025			2024			2025
Total interest and other expense, net presented in the condensed consolidated statements of operations in which the effects of cash flow hedges are recorded		$	(8,619)		$	(10,713)		$	(15,978)		$	(18,111)
Gain (loss) recognized in other comprehensive income (loss), net of tax		$	1,683		$	(215)		$	(1,537)		$	(454)
Benefit reclassified from accumulated other comprehensive income (loss) to interest expense, net		$	635		$	322		$	1,535		$	786

OSI SYSTEMS INC 10-Q