Apellis Pharmaceuticals, Inc. Earnings Per Share Disclosure
15. Net Income/(Loss) per Common Share
The following table presents the calculation of basic and diluted net income/(loss) per common share (amounts in thousands, except per share amounts):
|
Year Ended December 31, |
|
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|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Basic net income/(loss) per share |
|
|
|
|
|
|
|
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|||
Net income/(loss) |
$ |
22,388 |
|
|
$ |
(197,878 |
) |
|
$ |
(528,628 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|||
Weighted-average number of common shares used in net income/(loss) per common share - basic |
|
126,145 |
|
|
|
123,905 |
|
|
|
118,678 |
|
Net income/(loss) per common share - basic |
$ |
0.18 |
|
|
$ |
(1.60 |
) |
|
$ |
(4.45 |
) |
|
|
|
|
|
|
|
|
|
|||
Diluted net income/(loss) per share |
|
|
|
|
|
|
|
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|||
Net income/(loss) |
$ |
22,388 |
|
|
$ |
(197,878 |
) |
|
$ |
(528,628 |
) |
Adjustment - Interest expense on Convertible Notes |
|
3,607 |
|
|
|
— |
|
|
|
— |
|
Adjusted net income/(loss) |
$ |
25,995 |
|
|
$ |
(197,878 |
) |
|
$ |
(528,628 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|||
Weighted-average number of common shares used in |
|
126,145 |
|
|
|
123,905 |
|
|
|
118,678 |
|
Convertible notes |
|
2,379 |
|
|
|
— |
|
|
|
— |
|
Stock options to purchase common stock |
|
967 |
|
|
|
— |
|
|
|
— |
|
Unvested restricted stock units |
|
346 |
|
|
|
— |
|
|
|
— |
|
Shares expected to be purchased under employee stock purchase plan |
|
18 |
|
|
|
— |
|
|
|
— |
|
Weighted-average number of common shares used in net income/(loss) per common share - diluted |
|
129,855 |
|
|
|
123,905 |
|
|
|
118,678 |
|
Net income/(loss) per common share - diluted |
$ |
0.20 |
|
|
$ |
(1.60 |
) |
|
$ |
(4.45 |
) |
Shares outstanding presented below were excluded from the calculation of diluted net income/(loss) per share, prior to the use of the treasury stock method, as their effect is anti-dilutive (in thousands):
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Convertible notes |
|
— |
|
|
|
2,379 |
|
|
|
2,379 |
|
Stock options to purchase common stock |
|
6,506 |
|
|
|
8,048 |
|
|
|
8,664 |
|
Unvested restricted stock units |
|
3,483 |
|
|
|
3,962 |
|
|
|
4,301 |
|
Total |
|
9,989 |
|
|
|
14,389 |
|
|
|
15,344 |
|
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.