Credo Technology Group Holding LtdCRDO

Credo Technology Group Holding Ltd Earnings Per Share Disclosure

10-KFiled Jul 2, 20251 min read
Net Income (Loss) Per Share
Net income (loss) per share was determined as follows for the years presented (in thousands, except per share amounts):
Year Ended
May 3, 2025April 27, 2024April 29, 2023
Numerator:
Net income (loss)$52,183 $(28,369)$(16,547)
Denominator:
Weighted-average shares outstanding used in basic calculation167,505 155,091 146,556 
Effect of dilutive shares
Share-based compensation awards10,611 — — 
Customer Warrant3,042 — — 
Weighted-average shares outstanding used in diluted calculation181,158 155,091 146,556 
Net income (loss) per share attributable to ordinary shareholders
Basic$0.31 $(0.18)$(0.11)
Diluted$0.29 $(0.18)$(0.11)
Potential dilutive securities include dilutive ordinary shares from share-based awards attributable to the assumed exercise of share options, restricted share units and employee stock purchase plan shares using the treasury stock method. Under the treasury stock method, potential ordinary shares outstanding are not included in the computation of diluted net loss per share if their effect is anti-dilutive. The following potentially dilutive securities outstanding have been excluded from the computations of diluted weighted average shares outstanding for the years ended May 3, 2025, April 27, 2024 and April 29, 2023:
Year Ended
May 3, 2025April 27, 2024April 29, 2023
Share-based compensation awards3,349 16,777 15,194 
Customer Warrant— 4,080 4,080 
3,349 20,857 19,274 

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.

Other Available Disclosures

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