Net Loss per Share Available to Common Stockholders
Net loss per share (basic) available to common stockholders is calculated by dividing net loss available to common stockholders by the weighted-average shares of common stock outstanding for the period. Net loss per share is the same for each class of common stock as they are entitled to the same liquidation and dividend rights. As a result, net loss per share (basic) and net loss per share (diluted) available to common stockholders are the same for both Class A and Class B common stock and are combined for presentation. On July 27, 2023, each share of our Class B common stock automatically converted into one share of our Class A common stock.
Net loss per share (diluted) is computed by using (i) the if-converted method when calculating the potentially dilutive effect, if any, of our convertible notes, and our redeemable convertible preferred stock, and (ii) the treasury stock method when calculating the potentially dilutive effect, if any, of our outstanding stock options and awards, and shares issued in conjunction with the Company’s ESPP. Net loss per share (diluted) available to common stockholders is then calculated by dividing the resulting adjusted net loss available to common stockholders by the combined weighted-average number of fully diluted common shares outstanding. There were no adjustments to net loss available to common stockholders (diluted). Equally, there were no adjustments to the weighted average number of outstanding shares of common stock (basic) in arriving at the weighted average number of outstanding shares (diluted), as such adjustments would have been antidilutive.
The following table sets forth the computation of our net loss per share available to common stockholders, basic and diluted (in thousands, except per share amounts):
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | Years Ended
December 31, |
| | | | | | | 2025 | | 2024 | | 2023 |
| | | | | | | | | | |
| Numerator: | | | | | | | | | | |
Net loss available to common stockholders | | | | | | $ | (88,434) | | | $ | (29,227) | | | $ | (302,116) | |
| Denominator: | | | | | | | | | | |
| Weighted average shares of common stock, basic and diluted | | | | | | 240,402 | | | 227,365 | | | 212,681 | |
Net loss per share available to common stockholders, basic and diluted | | | | | | $ | (0.37) | | | $ | (0.13) | | | $ | (1.42) | |
The following common stock equivalents were excluded from the computation of our net loss per share available to common stockholders, diluted, for the years presented as their inclusion would have been antidilutive (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | | Years Ended
December 31, |
| | | 2025 | | 2024 | | 2023 |
| | | | | | | |
| Convertible notes | | 53,174 | | | 55,020 | | | 35,327 | |
| Redeemable convertible preferred stock | | — | | | — | | | 9,795 | |
| | | | | | |
| Stock options and awards | | 16,199 | | | 6,325 | | | 4,011 | |
| | 69,373 | | | 61,345 | | | 49,133 | |
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.