Note 12 – Earnings Per Share
As a result of the Stock Split discussed in Note 1 – Nature of Operations and Basis of Presentation, all historical per share data, number of shares and numbers of equity awards were retroactively adjusted. The following table provides the computation of basic and diluted earnings per share:
| | | | | | | | | | | | | | | | | |
| December 31, |
| (in thousands, except share and per share data) | 2025 | | 2024 | | 2023 |
| Basic income per share: | | | | | |
| Net income (loss) | $ | 8,345 | | | $ | (7,332) | | | $ | (8,967) | |
| Basic weighted average shares outstanding | 46,364,229 | | | 46,811,354 | | | 44,868,862 | |
| Basic income (loss) per share of common stock | $ | 0.18 | | | $ | (0.16) | | | $ | (0.20) | |
| | | | | |
| Diluted income per share: | | | | | |
| Net income (loss) | $ | 8,345 | | | $ | (7,332) | | | $ | (8,967) | |
| Basic weighted average shares outstanding | 46,364,229 | | | 46,811,354 | | | 44,868,862 | |
| Effect of dilutive securities | 802,240 | | | — | | | — | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| Diluted weighted average shares outstanding | 47,166,469 | | | 46,811,354 | | | 44,868,862 | |
| Diluted income (loss) per share of common stock | $ | 0.18 | | | $ | (0.16) | | | $ | (0.20) | |
The securities that were excluded from the calculation of diluted earnings per share because their inclusion would be anti-dilutive were as follows:
| | | | | | | | | | | | | | | | | |
| December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| Stock options | 1,489,204 | | | 1,681,845 | | | 1,721,266 | |
| Other stock-based awards | 1,432 | | | 241,015 | | | 383,411 | |
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.