Five9, Inc.FIVN

Five9, Inc. Earnings Per Share Disclosure

10-KFiled Feb 20, 20262 min read
Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period, and excludes any dilutive effects of employee stock-based awards and potential shares upon conversion of the convertible senior notes. Diluted net income (loss) per share is computed giving effect to all potentially dilutive shares of common stock, including common stock issuable upon exercise of stock options, vesting of RSUs and PRSUs, and shares of common stock issuable upon conversion of convertible senior notes.
The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data):
Year Ended December 31,
202520242023
Net income (loss)$39,416 $(12,795)$(81,764)
Weighted-average shares used in computing basic and diluted net income (loss) per share:
Basic76,916 74,503 72,048 
Diluted88,002 74,503 72,048 
Basic and diluted net income (loss) per share:
Basic$0.51 $(0.17)$(1.13)
Diluted$0.45 $(0.17)$(1.13)
The following securities were excluded from the calculation of diluted net income (loss) per share because their effect would have been anti-dilutive (in thousands):
December 31,
202520242023
Stock options— 860 918 
RSUs (including PRSUs)
— 5,829 4,076 
Convertible senior notes
— 11,466 5,566 
Total— 18,155 10,560 
The Company used the if-converted method for calculating any potential dilutive effect of its convertible senior notes for the years ended December 31, 2025, 2024 and 2023. Under this method, the Company calculates diluted earnings per share under both the cash and share settlement assumptions to determine which is more dilutive. If share settlement is more dilutive, the Company calculates diluted earnings per share assuming that all of the convertible senior notes were converted solely into shares of common stock at the beginning of the reporting period. The potential impact upon the conversion of the convertible senior notes were included in the calculation of diluted net income per share for the year ended December 31, 2025 and were excluded in the calculation of diluted net loss per share for the years ended December 31, 2024 and 2023 because the effect would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 22, 2024
2022Feb 24, 2023
2021Feb 28, 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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