Bridgeline Digital, Inc. Earnings Per Share Disclosure
13. Net Loss Per Share Attributable to Common Stockholders
Basic and diluted net loss per share is computed as follows:
| (in thousands, except share and per share data) | ||||||||
| Years Ended September 30, | ||||||||
| 2025 | 2024 | |||||||
| Numerator: | ||||||||
| Net loss applicable to common stockholders - basic earnings per share | $ | (2,518 | ) | $ | (1,961 | ) | ||
| Redemption of Series C Convertible Preferred Stock | (331 | ) | - | |||||
| Net loss applicable to common stockholders - diluted earnings per share | $ | (2,849 | ) | $ | (1,961 | ) | ||
| Denominator: | ||||||||
| Weighted-average shares outstanding for basic earnings per share | 11,227,586 | 10,417,609 | ||||||
| Effect of dilutive securities: | ||||||||
| Options | - | - | ||||||
| Warrants | - | - | ||||||
| Weighted-average shares outstanding for diluted earnings per share | 11,227,586 | 10,417,609 | ||||||
| Basic net income (loss) per share | $ | (0.25 | ) | $ | (0.19 | ) | ||
| Diluted net income (loss) per share | $ | (0.25 | ) | $ | (0.19 | ) | ||
Potential common stock equivalents excluded from the computation of diluted net income (loss) per share because their inclusion would have been anti-dilutive were as follows (in shares):
| As of September 30, | ||||||||
| 2025 | 2024 | |||||||
| Stock options | 1,988,677 | 2,107,895 | ||||||
| Warrants | 861,533 | 804,533 | ||||||
| Series C Convertible preferred stock | - | 38,889 | ||||||
| Unvested restricted stock | 191,210 | 66,672 | ||||||
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.