Amphastar Pharmaceuticals, Inc. Earnings Per Share Disclosure
Note 4. Net Income per Share
Basic net income per share is calculated based upon the weighted-average number of shares outstanding during the period. Diluted net income per share gives effect to all potentially dilutive shares outstanding during the period, such as stock options, non-vested restricted stock units, and shares issuable under the Company’s Employee Stock Purchase Plan, or ESPP, and potential shares of common stock issuable upon conversion of Convertible Notes of the Company, due March 2029, or the 2029 Convertible Notes.
For the year ended December 31, 2025, options to purchase 3,200,705 shares of stock with a weighted-average exercise price of $35.00 per share were excluded in the computation of diluted net income per share because their effect would be anti-dilutive. The 2029 Convertible Notes had no impact on the computation of diluted net income per share as the average stock price during the period was less than the conversion price.
For the year ended December 31, 2024, options to purchase 618,973 shares of stock with a weighted-average exercise price of $46.63 per share were excluded in the computation of diluted net income per share because their effect would be anti-dilutive. The 2029 Convertible Notes had no impact on the computation of diluted net income per share as the average stock price during the period was less than the conversion price.
For the year ended December 31, 2023, the Company did t have any options that were excluded in the computation of diluted net income per share because the effect would be anti-dilutive. The 2029 Convertible Notes had no impact on the computation of diluted net income per share as the average stock price during the period was less than the conversion price.
The following table provides the calculation of basic and diluted net income per share for each of the periods presented:
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
(in thousands, except per share data) | |||||||||
Basic and dilutive numerator: |
| | | | | | |||
Net income | $ | 98,094 | $ | 159,519 | $ | 137,545 | |||
Denominator: | |||||||||
Weighted-average shares outstanding — basic |
| 46,743 |
| 48,429 |
| 48,265 | |||
Net effect of dilutive securities: | |||||||||
Incremental shares from equity awards |
| 1,472 |
| 3,629 |
| 4,736 | |||
Weighted-average shares outstanding — diluted |
| 48,215 |
| 52,058 |
| 53,001 | |||
Net income per share — basic | $ | 2.10 | $ | 3.29 | $ | 2.85 | |||
Net income per share — diluted | $ | 2.03 | $ | 3.06 | $ | 2.60 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 3, 2025 | |
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.