CG Oncology, Inc. Earnings Per Share Disclosure
Basic and diluted net loss per share was calculated as follows (in thousands, except share and per share amounts):
|
|
Year Ended December 31, |
|
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|
|
2025 |
|
|
2024 |
|
|
2023 |
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|||
Numerator: |
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|
|
|
|
|
|
|
|
|||
Net loss and comprehensive loss |
|
$ |
(160,995 |
) |
|
$ |
(88,039 |
) |
|
$ |
(48,607 |
) |
Deemed dividend on redeemable convertible preferred stock issuances |
|
|
— |
|
|
|
— |
|
|
$ |
(410 |
) |
Cumulative redeemable convertible preferred stock dividends |
|
|
— |
|
|
|
— |
|
|
$ |
(18,781 |
) |
Net loss and comprehensive loss |
|
$ |
(160,995 |
) |
|
$ |
(88,039 |
) |
|
$ |
(67,798 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted-average common stock outstanding, basic and diluted |
|
|
77,303,440 |
|
|
|
62,496,725 |
|
|
|
4,330,933 |
|
Net loss per share attributable to common stockholders, basic and diluted |
|
$ |
(2.08 |
) |
|
$ |
(1.41 |
) |
|
$ |
(15.65 |
) |
The Company’s potentially dilutive securities, which include redeemable convertible preferred stock and stock options, have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Basic and diluted net loss per share attributable to common stockholders is computed in conformity with the two-class method required for participating securities. The Company considers all series of its convertible preferred stock to be participating securities as the holders of such stock have the right to receive dividends on a pari passu basis in the event that a dividend is paid on common stock. Under the two-class method, the net loss attributable to common stockholders is not allocated to the convertible preferred stock as the preferred stockholders do not have a contractual obligation to share in the Company’s losses.
The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders for the years ended December 31, 2025, 2024 and 2023 because including them would have had an anti-dilutive effect:
|
|
December 31, |
|
|
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|||
Conversion of redeemable convertible preferred stock |
|
|
— |
|
|
|
— |
|
|
|
38,413,913 |
|
|
Stock options outstanding |
|
|
7,958,219 |
|
|
|
6,574,580 |
|
|
|
5,532,871 |
|
|
Total |
|
|
7,958,219 |
|
|
|
6,574,580 |
|
|
|
43,946,784 |
|
|
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.