FIGS, Inc.FIGS

FIGS, Inc. Earnings Per Share Disclosure

10-KFiled Feb 26, 20262 min read
EARNINGS PER SHARE
Basic EPS and Diluted EPS attributable to common stockholders is calculated in conformity with the two-class method required for participating securities: Class A and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion, and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to twenty votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.
As the economic rights of Class A and Class B common stock are identical, undistributed earnings are allocated on a proportionate basis and presented on a combined basis. The following table sets forth the computation of Basic EPS
and Diluted EPS and a reconciliation of the weighted average number of common and common equivalent shares outstanding for the years ended December 31, 2025, 2024, and 2023 (in thousands, except share and per share amounts).
Year ended December 31,
202520242023
Numerator:
Net income$34,250 $2,720 $22,637 
Denominator:
Weighted-average shares—basic163,462,072 169,201,983 168,065,721 
Effect of dilutive stock options13,451,148 10,359,317 13,502,538 
Effect of dilutive restricted stock units2,573,666 541,540 844,705 
Weighted-average shares—diluted179,486,886 180,102,840 182,412,965 
Earnings per share:
Basic earnings per share
$0.21 $0.02 $0.13 
Effect of dilutive stock options and restricted stock units(0.02)— (0.01)
Diluted earnings per share
$0.19 $0.02 $0.12 
The Company excluded the following weighted average common equivalent shares from the computation of Diluted EPS for the years ended December 31, 2025, 2024, and 2023 because including them would have had an anti-dilutive effect:
Year ended December 31,
202520242023
Stock options to purchase common stock5,887,034 21,480,801 11,219,739 
Restricted stock units108,112 1,637,740 2,278,137 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 27, 2025
2021Mar 10, 2022

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.

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