Drilling Tools International Corp Earnings Per Share Disclosure
NOTE 16 – EARNINGS PER SHARE
Basic earnings per share is computed using the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed using the weighted-average number of common shares outstanding for the period plus dilutive potential common shares, including performance share awards, using the treasury stock method. Performance share awards are included based on the number of shares that would be issued as if the end of the reporting period was the end of the performance period and the result was dilutive.
The following table sets forth the computation of the Company’s basic and diluted net earnings per share for the years ended December 31, 2025 and 2024 (in thousands, except share and per share data):
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|
Year Ended December 31, |
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|
|
2025 |
|
|
2024 |
|
||
Numerator: |
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|
|
|
|
|
||
Net income (loss) attributable to Drilling Tools International stockholders |
|
$ |
(3,761 |
) |
|
$ |
3,014 |
|
Denominator |
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|
|
|
|
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||
Weighted-average common shares used in computing earnings per share — basic |
|
|
35,533,268 |
|
|
|
31,938,847 |
|
Weighted-average effect of potentially dilutive securities: |
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|
|
|
|
|
||
Effect of potentially dilutive stock options |
|
|
— |
|
|
|
311,277 |
|
Effect of potentially dilutive performance-based stock options |
|
|
— |
|
|
|
41,033 |
|
Effect of potentially dilutive restricted stock units |
|
|
— |
|
|
|
17,022 |
|
Weighted-average common shares outstanding — diluted |
|
|
35,533,268 |
|
|
|
32,308,179 |
|
Earnings per share — basic |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
Earnings per share — diluted |
|
$ |
(0.11 |
) |
|
$ |
0.09 |
|
As of December 31, 2025 and 2024, the Company’s potentially dilutive securities consisted of options to purchase common stock as well as restricted stock units. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income per share for the periods presented because including them would have had an anti-dilutive effect:
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|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Performance-based options outstanding |
|
|
534,063 |
|
|
|
— |
|
Stock options outstanding |
|
|
4,429,563 |
|
|
|
140,135 |
|
Restricted stock units outstanding |
|
|
1,022,451 |
|
|
|
— |
|
Total |
|
|
5,986,077 |
|
|
|
140,135 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 28, 2024 | |
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.