Emergent BioSolutions Inc.EBS

Emergent BioSolutions Inc. Earnings Per Share Disclosure

10-KFiled Feb 27, 20262 min read
Earnings (loss) per common share
Basic earnings (loss) per common share is calculated using the treasury method by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share adjusts basic earnings (loss) per common share for the effects of potentially dilutive common shares and is calculated using the treasury stock method. Potentially dilutive common shares include the dilutive effect of shares issuable under our equity compensation plans, including stock options, restricted stock units and performance stock units, as well as shares issuable upon exercises of the Warrants. Diluted earnings (loss) per share excludes anti-dilutive securities, which represent the number of potential common shares related to shares issuable under our equity compensation plans and pursuant to exercises of the Warrants that were excluded from diluted earnings (loss) per common share because their effect would have been antidilutive.
The following table presents the calculation of basic and diluted earnings (loss) per common share:
Year Ended December 31,
2025
2024
2023
Numerator:   
Net income (loss)$52.6 $(190.6)$(760.5)
Denominator:
Weighted-average number of shares-basic53.5 53.0 51.2 
Dilutive securities - equity awards3.2 — — 
Weighted-average number of shares-diluted56.7 53.0 51.2 
Net income (loss) per common share - basic$0.98 $(3.60)$(14.85)
Net income (loss) per common share - diluted$0.93 $(3.60)$(14.85)
The following table presents the securities and equity awards that are not considered in the diluted earnings (loss) per common share calculation generally because the exercise price of the awards was greater than the average per share closing price during the year ending December 31, 2025, 2024 and 2023 or the period resulted in a net loss, thus making the awards anti-dilutive. In certain instances, awards may be anti-dilutive even if the average market price exceeds the exercise price when the sum of the assumed proceeds exceeds the difference between the market price and the exercise price.
Year Ended December 31,
2025
2024
2023
Anti-dilutive stock awards4.4 4.9 3.6 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Mar 4, 2025
2023Mar 8, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Feb 19, 2021
2019Feb 25, 2020

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

Income TaxesRevenueFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtNew Standards