Arteris, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Numerator: | |||||||||||
Net loss | $ | (34,746) | $ | (33,638) | |||||||
Denominator: | |||||||||||
Weighted-average shares outstanding, basic and diluted | 42,290,619 | 38,914,197 | |||||||||
| Net loss per share, basic and diluted | $ | (0.82) | $ | (0.86) | |||||||
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
Stock options | 1,703,146 | 2,197,604 | |||||||||
Restricted stock units | 4,355,001 | 5,225,948 | |||||||||
Restricted common shares issued for business combination | — | 234,859 | |||||||||
| Shares committed under the 2021 ESPP | 56,659 | 83,398 | |||||||||
Total | 6,114,806 | 7,741,809 | |||||||||
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.