APPLIED OPTOELECTRONICS, INC. Earnings Per Share Disclosure
NOTE F—EARNINGS PER SHARE
Basic net loss per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from options and restricted stock units outstanding during the period. Convertible senior notes are included in the denominator as if it were converted at the beginning of the period or, if issued during the period, at the time of issuance. In periods with net losses, normally dilutive shares become anti-dilutive. Therefore, basic and dilutive earnings per share are the same.
The following table presents the computation of the basic and diluted net loss per share for the periods indicated (in thousands):
| Year ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Numerator: | ||||||||||||
| Net loss | $ | (38,228 | ) | $ | (186,733 | ) | $ | (56,048 | ) | |||
| Denominator: | ||||||||||||
| Weighted average shares used to compute net loss per share | ||||||||||||
| Basic | 60,184 | 41,539 | 31,944 | |||||||||
| Effect of dilutive options and restricted stock units | — | — | — | |||||||||
| Diluted | 60,184 | 41,539 | 31,944 | |||||||||
| Net loss per share | ||||||||||||
| Basic | $ | (0.64 | ) | $ | (4.50 | ) | $ | (1.75 | ) | |||
| Diluted | $ | (0.64 | ) | $ | (4.50 | ) | $ | (1.75 | ) | |||
The following potentially dilutive securities were excluded from diluted net loss per share as their effect would have been antidilutive (in thousands):
| As of December 31, | ||||||||
| 2025 | 2024 | |||||||
| Restricted stock units | 2,335 | 2,709 | ||||||
| Shares for Notes 2026 | 140 | 5,153 | ||||||
| Shares for Notes 2030 | 2,886 | 63 | ||||||
| Total antidilutive shares | 5,361 | 7,925 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Feb 26, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 9, 2017 | |
| 2015 | Mar 14, 2016 | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.