(16) Net Income (Loss) Per Share

The computation of basic and diluted net income (loss) per share consists of the following:

 

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

 

 

(In thousands, except share and per share data)

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

13,375

 

 

$

(45,811

)

 

$

(82,738

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding, basic

 

 

77,535,121

 

 

 

69,439,034

 

 

 

39,363,114

 

Weighted average shares outstanding, diluted

 

 

80,306,690

 

 

 

69,439,034

 

 

 

39,363,114

 

Net income (loss) per share, basic

 

$

0.17

 

 

$

(0.66

)

 

$

(2.10

)

Net income (loss) per share, diluted

 

$

0.17

 

 

$

(0.66

)

 

$

(2.10

)

 

Potentially dilutive common shares that were excluded from the computation of diluted net loss per share because they were anti-dilutive consist of the following:

 

 

Year ended December 31,

 

 

 

2024

 

 

2023

 

 

2022

 

Common stock options

 

 

141,134

 

 

 

5,234,194

 

 

 

3,904,080

 

Restricted common stock units

 

 

2,979

 

 

 

574,247

 

 

 

257,075

 

Restricted common stock awards

 

 

218

 

 

 

881,674

 

 

 

23,886

 

Convertible note, if converted

 

 

 

 

 

3,951,833

 

 

 

3,601,533

 

Total

 

 

144,331

 

 

 

10,641,948

 

 

 

7,786,574

 

The potential dilutive shares from common stock options, restricted common stock units, restricted common stock awards, and the convertible note were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive for the periods presented. The Company excludes the shares issued in connection with restricted stock awards from the calculation of basic weighted average common shares outstanding until the restrictions lapse.

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.