CYTOKINETICS INC Earnings Per Share Disclosure
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):
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Years Ended December 31, |
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2025 |
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2024 |
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2023 |
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Options to purchase common stock |
|
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10,868 |
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|
|
10,420 |
|
|
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11,780 |
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Warrants to purchase common stock |
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— |
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|
|
— |
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|
|
13 |
|
Restricted stock and performance units |
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2,574 |
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|
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1,865 |
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|
|
1,375 |
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Shares issuable related to the ESPP |
|
|
16 |
|
|
|
15 |
|
|
|
16 |
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Shares issuable upon conversion of 2026 Notes |
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|
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 |
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|
10,962 |
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|
|
— |
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|
|
— |
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Total shares |
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29,174 |
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|
|
24,875 |
|
|
|
25,759 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2021 | Feb 25, 2022 | |
| 2018 | Mar 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.