Cars.com Inc. Earnings Per Share Disclosure
Note 11. Net Income Per Share
Basic net income per share is calculated by dividing Net income by the weighted-average number of shares of the Company's common stock outstanding. Diluted net income per share is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans, unless the inclusion of such shares would have an anti-dilutive impact. As part of the DealerClub Acquisition, the Company may pay up to $88.0 million of performance-based consideration in shares of the Company's stock at a future date if mutually agreed upon. Those potential shares have been excluded from the computations below as they are contingently issuable shares, and the contingency to which the issuance relates was not met at the end of the reporting period. The computation of net income per share is as follows (in thousands, except per share amounts):
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Year Ended December 31, |
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2025 |
|
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2024 |
|
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2023 |
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Net income (1) |
|
$ |
20,052 |
|
|
$ |
48,188 |
|
|
$ |
118,442 |
|
Basic weighted-average common shares outstanding |
|
|
62,386 |
|
|
|
66,006 |
|
|
|
66,742 |
|
Effect of dilutive stock-based compensation awards (2) |
|
|
878 |
|
|
|
1,381 |
|
|
|
1,485 |
|
Diluted weighted-average common shares outstanding |
|
|
63,264 |
|
|
|
67,387 |
|
|
|
68,227 |
|
Net income per share, basic (1) |
|
$ |
0.32 |
|
|
$ |
0.73 |
|
|
$ |
1.77 |
|
Net income per share, diluted (1) |
|
|
0.32 |
|
|
|
0.72 |
|
|
|
1.74 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2020 | Feb 25, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 6, 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.