ANI PHARMACEUTICALS INCANIP

ANI PHARMACEUTICALS INC Earnings Per Share Disclosure

10-KFiled Feb 27, 20262 min read
EARNINGS (LOSS) PER SHARE
Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during the period.
For periods of net income, and when the effects are not anti-dilutive, the Company calculates diluted earnings (loss) per share by dividing net income available to common stockholders by the weighted-average number of shares outstanding plus the impact of all potential dilutive shares of common stock, consisting of shares issuable upon conversion of the Company's senior convertible notes, common stock options, shares to be purchased under the ESPP, and performance stock units, using the more dilutive of the treasury stock or the two-class method. For periods of net loss, diluted loss per share is calculated similarly to basic loss per share.
Unvested restricted shares and Series A convertible preferred stock shares contain non-forfeitable rights to dividends, and therefore are considered to be participating securities; in periods of net income, the calculation of basic and diluted earnings (loss) per share excludes from the numerator net income (but not net loss) attributable to the unvested restricted shares and the shares of common stock assumed converted from the preferred shares and excludes the impact of those shares from the denominator. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss is attributed entirely to common stockholders.
As the Company reported a net loss for the year ended December 31, 2024, diluted net loss per share attributable to common shareholders was the same as basic net loss per share attributable to common shareholders for this period.
Earnings (loss) per share for the years ended December 31, 2025, 2024, and 2023 are calculated for basic and diluted earnings (loss) per share as follows:
BasicDiluted
(in thousands, except per share amounts)Years Ended December 31,Years Ended December 31,
202520242023202520242023
Net income (loss) available to common shareholders $77,180 $(20,147)$17,154 $77,180 $(20,147)$17,154 
Earnings allocated to participating securities(6,963)— (1,679)(6,611)— (1,663)
Net income (loss) available to common shareholders$70,217 $(20,147)$15,475 $70,569 $(20,147)$15,491 
Basic Weighted-Average Shares Outstanding20,05319,31818,00120,05319,31818,001
Dilutive effect of convertible senior notes, common stock options, ESPP, and performance stock units1,175—193
Diluted Weighted-Average Shares Outstanding21,22819,31818,194
Earnings (loss) per share$3.50 $(1.04)$0.86 $3.32 $(1.04)$0.85 
The number of anti-dilutive shares, which have been excluded from the computation of diluted earnings (loss) per share, was 2.0 million, 2.3 million, and 2.4 million for the years ended December 31, 2025, 2024, and 2023, respectively. For the year ended December 31, 2024, all potentially dilutive shares were anti-dilutive and excluded from the calculation of diluted loss per share because the Company reported a net loss.

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 28, 2025
2023Feb 29, 2024

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.

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