ARVINAS, INC.ARVN

ARVINAS, INC. Earnings Per Share Disclosure

10-KFiled Feb 24, 20262 min read
Net Loss Per Share
Basic and diluted loss per common share was calculated as follows:
Year ended December 31,
(dollars and shares in millions, except per common share amounts)2025 2024 2023
Net loss$(80.8)$(198.9)$(367.3)
Weighted-average common shares outstanding
 - basic and diluted
70.9 71.9 55.5 
Net loss per common share
 - basic and diluted		$(1.14)$(2.77)$(6.62)
Treasury shares are not considered outstanding and are excluded from the calculation of basic and diluted loss per common share.
The weighted-average number of common shares included in the computation of basic and diluted net loss per common share for the years ended December 31, 2024 and 2023 gave effect to pre-funded warrants which allowed holders to acquire a specified number of common shares at a nominal exercise price of $0.001 per share and were classified as equity. The shares underlying the pre-funded warrants were exercisable for little or no consideration and therefore the underlying shares were considered outstanding at the issuance of the pre-funded warrants for purposes of calculating the weighted-average number of common shares outstanding in basic and diluted net loss per share for common share. As of December 31, 2025, all outstanding pre-funded warrants had been cashless exercised for no consideration. See Note 9, Equity.
The Company reported net losses for each of the years ended December 31, 2025, 2024 and 2023, and therefore excluded all stock options and RSUs from the computation of diluted net loss per common share as their inclusion would have had an anti-dilutive effect, as summarized below:
Year ended December 31,
(shares in millions)202520242023
Stock options8.6 7.9 7.9 
RSUs3.6 2.3 1.2 
12.2 10.2 9.1 

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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