EverQuote, Inc. Earnings Per Share Disclosure
14. Net Income (Loss) per Share
A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands):
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income (loss) |
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$ |
99,311 |
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$ |
32,169 |
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$ |
(51,287 |
) |
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Denominator: |
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Weighted average basic common shares |
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36,141 |
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35,007 |
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33,350 |
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Effect of dilutive securities: |
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Options to purchase common stock |
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635 |
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673 |
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— |
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Restricted stock units |
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977 |
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966 |
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— |
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Weighted average diluted common shares |
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37,753 |
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36,646 |
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33,350 |
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The Company excluded the following potential common shares, presented based on weighted average shares outstanding during the periods, from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect (in thousands):
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Year 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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2 |
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202 |
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2,070 |
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Restricted stock units |
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10 |
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167 |
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2,605 |
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12 |
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369 |
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4,675 |
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The tables above do not include performance-based awards for which the performance goal had not been met as of period end. As of December 31, 2025, the Company had 489,173 outstanding pRSUs for which the performance goal had not been met as of period end.
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.