18. NET INCOME (LOSS) PER SHARE

The Company uses the treasury stock method to calculate net income (loss) per share. Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per share is calculated by dividing net income (loss) by the diluted weighted average number of shares of common stock outstanding for the period. For purposes of this calculation, outstanding stock options, RSUs, and PSUs are considered potential dilutive shares of common stock. The following is a computation of basic and diluted net income (loss) per share (amounts in thousands, except per share amounts):

 

 

For the fiscal years ended

 

 

January 3, 2026

 

December 28, 2024

 

Numerator:

 

 

 

 

Net income (loss)

$

225,034

 

$

(10,929

)

Denominator:

 

 

 

 

Weighted average shares of common stock outstanding (1), basic

 

203,526

 

 

192,893

 

Net income (loss) per share, basic

$

1.11

 

$

(0.06

)

 

 

 

 

 

Weighted average shares of common stock outstanding (1), diluted

 

214,979

 

 

192,893

 

Net income (loss) per share, diluted

$

1.05

 

$

(0.06

)

Dilutive securities outstanding not included in the computation of diluted net income (loss) per share, as their effect is antidilutive:

 

 

 

 

RSUs

 

-

 

 

9,153

 

PSUs

 

-

 

 

6,288

 

Stock options

 

3,206

 

 

13,001

 

 

(1) The calculation of weighted average shares of common stock outstanding includes all vested deferred restricted stock units.

Historical Timeline

Fiscal YearFiled
2026Mar 19, 2026Showing above
2024Mar 13, 2025

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.