AXT INC Earnings Per Share Disclosure
Note 13. Net Income (Loss) per Share
Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options. Potentially dilutive common shares are excluded in net loss periods, as their effect would be anti-dilutive.
A reconciliation of the numerators and denominators of the basic and diluted net income per share calculations is as follows (in thousands, except per share data):
| Year ended | ||||||||||||
| December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Numerator: | ||||||||||||
| Net loss attributable to AXT, Inc. | $ | (21,260 | ) | $ | (11,624 | ) | $ | (17,881 | ) | |||
| Less: Preferred stock dividends | (177 | ) | (177 | ) | (177 | ) | ||||||
| Net loss available to common stockholders | $ | (21,437 | ) | $ | (11,801 | ) | $ | (18,058 | ) | |||
| Denominator: | ||||||||||||
| Denominator for basic net loss per share - weighted-average common shares | 43,933 | 43,154 | 42,643 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Common stock options | — | — | — | |||||||||
| Restricted stock awards | — | — | — | |||||||||
| Denominator for dilutive net loss per common shares | 43,933 | 43,154 | 42,643 | |||||||||
| Net loss attributable to AXT, Inc. per common share: | ||||||||||||
| Basic | $ | (0.49 | ) | $ | (0.27 | ) | $ | (0.42 | ) | |||
| Diluted | $ | (0.49 | ) | $ | (0.27 | ) | $ | (0.42 | ) | |||
| Options excluded from diluted net loss per share as the impact is anti-dilutive | 834 | 1,175 | 1,198 | |||||||||
| Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive | 2,210 | 1,842 | 1,258 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2017 | Mar 9, 2018 | |
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.