Note 2 — Net Loss Per Share

Basic net loss per share is computed by dividing net loss by the weighted average number of vested common shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive common shares, including outstanding stock options, unvested restricted stock, warrants, convertible preferred stock and shares issuable under our ESPP, during the period using the treasury stock method and convertible notes using the if-converted method.

The following instruments were excluded from the computation of diluted net loss per share for the periods presented because their effect would have been antidilutive (in thousands):

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Options to purchase common stock

 

 

10,868

 

 

 

10,420

 

 

 

11,780

 

Warrants to purchase common stock

 

 

 

 

 

 

 

 

13

 

Restricted stock and performance units

 

 

2,574

 

 

 

1,865

 

 

 

1,375

 

Shares issuable related to the ESPP

 

 

16

 

 

 

15

 

 

 

16

 

Shares issuable upon conversion of 2026 Notes

 

 

2,003

 

 

 

2,003

 

 

 

2,003

 

Shares issuable upon conversion of 2027 Notes

 

 

2,751

 

 

 

10,572

 

 

 

10,572

 

Shares issuable upon conversion of 2031 Notes

 

 

10,962

 

 

 

 

 

 

 

Total shares

 

 

29,174

 

 

 

24,875

 

 

 

25,759

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2023Feb 28, 2024
2021Feb 25, 2022
2018Mar 7, 2019

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.