F5, INC. Earnings Per Share Disclosure
| Years Ended September 30, | ||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Numerator | ||||||||||||||||||||
| Net income | $ | 692,380 | $ | 566,778 | $ | 394,948 | ||||||||||||||
| Denominator | ||||||||||||||||||||
| Weighted average shares outstanding — basic | 57,904 | 58,720 | 59,909 | |||||||||||||||||
Dilutive effect of common shares from stock options and restricted stock units | 780 | 639 | 361 | |||||||||||||||||
| Weighted average shares outstanding — diluted | 58,684 | 59,359 | 60,270 | |||||||||||||||||
| Basic net income per share | $ | 11.96 | $ | 9.65 | $ | 6.59 | ||||||||||||||
| Diluted net income per share | $ | 11.80 | $ | 9.55 | $ | 6.55 | ||||||||||||||
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.