19. NET INCOME PER SHARE

The computation of Net income per share, including the weighted-average shares outstanding (“WASO”) used in the computation, is as follows (in thousands, except per share amounts):


	Year Ended December 31,
		2025		2024		2023
Numerators
Net income		$	1,260,327	$	2,579,066	$	94,871
Less: net income allocated to participating shares		—		(1,311)		(119)
Net income attributable to common shareholders, basic		$	1,260,327	$	2,577,755	$	94,752

Net income		$	1,260,327	$	2,579,066	$	94,871
Add: interest on convertible notes, net of tax		16,987		13,375		—
Less: net income allocated to participating shares		—		(1,193)		(120)
Net income attributable to common shareholders, diluted		$	1,277,314	$	2,591,248	$	94,751

Denominators
WASO - basic		260,088		247,374		235,796
Weighted-average effect of potentially dilutive shares:
Stock options		15,494		16,958		16,845
Convertible notes		10,049		6,462		—
Restricted stock units		962		1,933		1,447
Performance restricted stock units		497		369		158
Restricted stock		119		281		145
WASO - diluted		287,209		273,377		254,391

Net income per share attributable to common shareholders:
Basic		$	4.85	$	10.42	$	0.40
Diluted		$	4.45	$	9.48	$	0.37

The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings are allocated on a proportionate basis and the resulting income or loss per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis.

The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive, or in the case of performance awards, as the issuance of such shares is contingent upon the satisfaction of certain conditions which were not satisfied by the end of the reporting period (in thousands):


	Year Ended December 31,
		2025	2024	2023
Equity awards(1)		4,276	6,582	9,175
Convertible notes		—	—	3,437
Total		4,276	6,582	12,612

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(1)Includes shares under the ESPP.

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.

Coinbase Global, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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