FIRST ADVANTAGE CORP Earnings Per Share Disclosure
Note 16. Net (Loss) Income Per Share
Basic and diluted net (loss) income per share was calculated as follows:
|
|
Year Ended December 31, |
|
|||||||||
(in thousands, except share and per share amounts) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Basic net (loss) income per share |
|
$ |
(0.20 |
) |
|
$ |
(0.74 |
) |
|
$ |
0.26 |
|
Diluted net (loss) income per share |
|
$ |
(0.20 |
) |
|
$ |
(0.74 |
) |
|
$ |
0.26 |
|
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net (loss) income |
|
|
(34,824 |
) |
|
|
(110,273 |
) |
|
|
37,293 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted average number of shares outstanding - basic |
|
|
173,199,004 |
|
|
|
148,582,226 |
|
|
|
144,083,808 |
|
Add options and restricted stock units to purchase units |
|
|
— |
|
|
|
— |
|
|
|
2,142,288 |
|
Weighted average number of shares outstanding - diluted |
|
|
173,199,004 |
|
|
|
148,582,226 |
|
|
|
146,226,096 |
|
For the years ended December 31, 2025, 2024, and 2023, a total of 4,161,657, 3,630,723, and 4,725,584 stock options, RSUs, and restricted stock awards were excluded from the calculation of diluted net (loss) income per share, respectively, because their effect was anti-dilutive.
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.