13. Net Loss Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net loss per share (in thousands, except share and per share data):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Numerator

 

 

 

 

 

 

Net loss

 

$

(140,109

)

 

$

(160,868

)

Denominator

 

 

 

 

 

 

Weighted-average shares outstanding used in
computing net loss per share, basic and diluted

 

 

57,930,180

 

 

 

53,943,741

 

Net loss per share, basic and diluted

 

$

(2.42

)

 

$

(2.98

)

In February 2024, the Company issued and sold pre-funded warrants to purchase 3,583,476 shares of common stock at a nominal exercise price of $0.0001. In November and December 2024, the Company entered into Exchange Agreements with BVF and RA Capital to exchange 5,775,000 and 535,000 shares, respectively, of the Company’s common stock for pre-funded warrants to acquire the same respective

number of shares of the Company’s common stock. The pre-funded warrants have an exercise price of $0.0001 per underlying share of common stock. In November 2025, the Company issued and sold pre-funded warrants to purchase 1,128,949 shares of the Company’s common stock. The pre-funded warrants have an exercise price of $0.0001 per underlying share of common stock (see Note 12, Common Stock Warrants). The shares of common stock into which the Pre-funded Warrants may be exercised are considered outstanding for the purposes of computing earnings per share, because the shares may be issued for little or no consideration, they are fully vested and the Pre-funded Warrants are immediately exercisable upon their issuance date.

 

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share for the periods presented because including them would have been antidilutive:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

Options issued and outstanding

 

 

9,412,808

 

 

 

9,337,000

 

Restricted stock units subject to future vesting

 

 

744,770

 

 

 

361,997

 

2020 ESPP

 

 

364,443

 

 

 

774,897

 

Common stock warrants

 

 

30,000

 

 

 

53,669

 

Total

 

 

10,552,021

 

 

 

10,527,563

 

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Feb 28, 2025

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.