14.

EARNINGS PER SHARE

 

Diluted earnings per share (“EPS”) includes the effect of potentially dilutive common stock equivalents, including stock options and restricted stock units (“RSUs”), to the extent such securities are dilutive. Basic EPS is computed using the weighted‑average number of common shares outstanding during the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted.

 

  

November 30,

 
  

2025

  

2024

 

Net income

 $9,687  $12,792 
         

Weighted-average number of shares used in computing net income per share, basic

  22,665,395   22,504,938 

Weighted-average number of shares used in computing net income per share, diluted

  24,149,794   23,139,549 

Net income per share - basic

 $0.43  $0.57 

Net income per share - diluted

 $0.40  $0.55 

 

The Company’s potential dilutive securities, which include stock options and RSUs have been excluded from the computation of diluted net income per share as the effect would be anti-dilutive. The following potential common shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net income per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:

 

  

November 30,

 
  

2025

  

2024

 

Stock options

     256,423 

Restricted stock

  29,233   19,374 

Total

  29,233   275,797 

 

 

Historical Timeline

Fiscal YearFiled
2025Feb 5, 2026Showing above
2024Feb 7, 2025
2023Feb 14, 2024
2022Feb 9, 2023
2021Feb 11, 2022
2020Feb 26, 2021

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.