ARDELYX, INC.ARDX

ARDELYX, INC. Earnings Per Share Disclosure

10-KFiled Feb 19, 20262 min read
NET LOSS PER SHARE
Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period and excludes any dilutive effects of stock-based awards. Diluted net loss per common share is computed giving effect to all potential dilutive common shares, including common stock issuable upon exercise of stock options, unvested restricted stock units and ESPP shares issuable pursuant to the current purchase period. As we had net losses for the years ended December 31, 2025, 2024 and 2023, all potential common shares were determined to be anti-dilutive.
The following table sets forth the computation of net loss per common share:
Year Ended December 31,
(in thousands, except per share amounts)
202520242023
Numerator
Net loss$(61,599)$(39,136)$(66,067)
Denominator
Weighted average common shares outstanding - basic and diluted
241,034 235,233 219,331 
Net loss per share of common stock - basic and diluted
$(0.26)$(0.17)$(0.30)
The total numbers of securities that could potentially dilute net income per share in the future that were not considered in the diluted net loss per share calculations because the effect would have been anti-dilutive were as follows:
Year Ended December 31,
(in thousands)202520242023
Options to purchase common stock29,904 27,800 20,877 
Restricted stock units12,703 7,883 3,086 
ESPP shares issuable165 230 249 
Total42,772 35,913 24,212 
The number of potential common shares that would have been included in diluted income per share had it not been for the anti-dilutive effect caused by the net loss, computed by converting these securities using the treasury stock method during the years ended December 31, 2025, 2024 and 2023, was approximately 5.7 million, 9.2 million and 6.3 million, respectively.

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.

Other Available Disclosures

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