Net Income Per Share

3 Months Ended

Mar. 31, 2026

Basic net income per share is computed by dividing net income for the period by the weighted-average number of shares outstanding during the period, including repurchases carried as treasury stock. Diluted net income per share is computed by dividing net income by the weighted-average number of shares outstanding adjusted for the dilutive effect of all potential shares of stock, including the exercise of employee stock options and assumed vesting of restricted stock units (if dilutive). Diluted net income per share was computed using the treasury stock method for stock options and restricted stock units.

The following table presents the calculation of basic and diluted net income per share:


	For the three months ended March 31,
(in thousands, except per share amounts)		2026		2025
Numerator:
Net income		$	51,303	$	36,164

Denominator(1):
Basic shares:
Weighted-average shares outstanding		33,764		33,852
Diluted shares(2):
Stock options		326		737
Restricted stock units		842		1,582

Weighted-average shares outstanding		34,932		36,171

Net income per share:
Basic		$	1.52	$	1.07
Diluted		$	1.47	$	1.00

(1) Effective March 28, 2025, we performed a 6-for-1 stock split of the Company’s common stock, effected through a stock dividend. Share and per share amounts have been retroactively adjusted.

(2) Because their effect would have been anti-dilutive, 4 and 55 shares were excluded from the denominator of diluted net income per share for the three months ended March 31, 2026 and 2025, respectively.

Sezzle Inc. 10-Q