AVANOS MEDICAL, INC.AVNS

AVANOS MEDICAL, INC. Earnings Per Share Disclosure

10-KFiled Feb 24, 20262 min read
Earnings Per Share (“EPS”)
Basic EPS is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings per share is calculated by dividing net income by the number of common shares outstanding and the effect of all dilutive common stock equivalents outstanding during each period, as determined using the treasury stock method.
The calculation of basic and diluted EPS for each of the three years ended December 31, 2025, 2024 and 2023 is set forth in the following table (in millions, except per share amounts):
Year Ended December 31,
202520242023
Net loss from continuing operations$(72.9)$(386.3)$(9.9)
Net loss from discontinued operations— (5.8)(51.9)
Net loss$(72.9)$(392.1)$(61.8)
Weighted Average Shares Outstanding:
Basic weighted average shares outstanding46.3 46.0 46.6 
Dilutive effect of stock options and restricted share unit awards— — — 
Diluted weighted average shares outstanding46.3 46.0 46.6 
Loss Per Share:
Basic:
Continuing Operations$(1.57)$(8.40)$(0.21)
Discontinued Operations— (0.13)(1.11)
Basic Loss Per Share$(1.57)$(8.53)$(1.32)
Diluted:
Continuing operations$(1.57)$(8.40)$(0.21)
Discontinued operations— (0.13)(1.11)
Diluted Loss Per Share$(1.57)$(8.53)$(1.32)
RSUs contain provisions allowing for the equivalent of any dividends paid on common stock during the restricted period to be reinvested into additional RSUs at the then fair market value of the common stock on the date dividends are paid. Such awards are to be included in the EPS calculation under the two-class method. Currently we do not anticipate any cash dividends for the foreseeable future and our outstanding RSU awards are not material in comparison to our weighted average shares outstanding. Accordingly, all EPS amounts reflect shares as if they were fully vested and the disclosures associated with the two-class method are not presented herein.
For the year ended December 31, 2025, $2.3 million of potentially dilutive stock options and restricted share unit awards were excluded from the computation of earnings per share as their effect would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 26, 2025
2023Feb 21, 2024
2022Feb 21, 2023
2021Feb 23, 2022
2020Feb 19, 2021
2019Feb 25, 2020
2018Feb 26, 2019
2017Feb 27, 2018
2016Feb 27, 2017
2015Feb 29, 2016

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.

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