Net Loss Per Share
The following is a reconciliation of the weighted average number of common shares outstanding used in calculating basic and diluted net loss per share (in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| | For the years ended March 31, |
| | 2025 | | 2024 | | 2023 |
| Net loss | $ | (27,212) | | | $ | (67,592) | | | $ | (73,143) | |
| Weighted average common shares outstanding - basic and diluted | 129,767 | | | 121,106 | | | 115,959 | |
| | | | | |
| Net loss per share - basic and diluted | $ | (0.21) | | | $ | (0.56) | | | $ | (0.63) | |
As the Company was in a loss position for all periods presented, basic net loss per share is equivalent to diluted net loss per share for all periods, as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. The following potentially weighted-average common shares were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (shares in thousands):
| | | | | | | | | | | | | | | | | |
| | For the years ended March 31, |
| | 2025 | | 2024 | | 2023 |
| Stock options | 276 | | | 497 | | | 685 | |
| Restricted stock units and Performance stock units | 2,418 | | | 7,396 | | | 13,617 | |
| Potential shares attributable to the ESPP | 2,944 | | | 1,446 | | | 1,261 | |
| Warrants to purchase common stock | — | | | — | | | 3,100 | |
| Total anti-dilutive shares | 5,638 | | | 9,339 | | | 18,663 | |
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.