Edgewise Therapeutics, Inc. Earnings Per Share Disclosure
NOTE 8 NET LOSS PER SHARE
Basic net loss per common share is calculated by dividing the net loss by the weighted-average number of common shares outstanding during the period, without consideration of potentially dilutive securities. Diluted net loss per share is computed by dividing the net loss by the weighted-average number of common shares and potentially dilutive securities outstanding for the period. For purposes of the diluted net loss per share calculation, common stock options and unvested restricted stock units are considered to be potentially dilutive securities. The Company’s participating securities do not have a contractual obligation to share in the Company’s losses. As such, the net loss was attributed entirely to common stockholders. As the Company has reported a net loss for all periods presented, diluted net loss per common share is the same as basic net loss per common share for those periods.
The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except share and per share data):
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Numerator | |||||||||
Net loss | $ | (167,795) |
| $ | (133,813) |
| $ | (100,163) | |
Denominator |
|
|
| ||||||
Weighted-average shares outstanding used in computing net loss per share, basic and diluted | 102,930,744 | 92,414,626 | 63,723,600 | ||||||
Net loss per share, basic and diluted | $ | (1.63) | $ | (1.45) | $ | (1.57) | |||
The following weighted average outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the periods presented because including them would have been anti-dilutive:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | | 2023 | ||||
Options to purchase common stock | 17,823,597 | 16,340,740 | 13,764,188 | ||||||
Unvested restricted stock units | 877,323 | 328,984 | 207,628 | ||||||
Total | 18,700,920 | 16,669,724 | 13,971,816 | ||||||
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.