AIRGAIN INC Earnings Per Share Disclosure
Note 3. Net Loss Per Share
Basic net loss per share is calculated by dividing net loss available to common stockholders by the weighted average shares of common stock outstanding for the period. Diluted net loss per share is calculated by dividing net loss by the weighted average shares of common stock outstanding for the period plus amounts representing the dilutive effect of securities that are convertible into common stock. The Company calculates diluted loss per common share using the treasury stock method.
The following table presents the computation of net loss per share (in thousands except per share data):
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For the Years Ended December 31, |
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2025 |
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2024 |
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Numerator: |
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|
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Net loss |
|
$ |
(6,426 |
) |
|
$ |
(8,688 |
) |
Denominator: |
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|
|
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Basic weighted average common shares outstanding |
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|
11,840 |
|
|
|
11,053 |
|
Diluted weighted average common shares outstanding |
|
|
11,840 |
|
|
|
11,053 |
|
Net loss per share: |
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|
|
|
|
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||
Basic |
|
$ |
(0.54 |
) |
|
$ |
(0.79 |
) |
Diluted |
|
$ |
(0.54 |
) |
|
$ |
(0.79 |
) |
Potentially dilutive securities (in common stock equivalent shares) not included in the calculation of diluted net loss per share because to do so would be anti-dilutive are as follows (in thousands):
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For the Years Ended December 31, |
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|
2025 |
|
|
2024 |
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||
Stock options and restricted stock |
|
|
2,315 |
|
|
|
2,040 |
|
Total common stock equivalent shares |
|
|
2,315 |
|
|
|
2,040 |
|
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.