GigaCloud Technology IncGCT

GigaCloud Technology Inc Earnings Per Share Disclosure

10-KFiled Feb 26, 20261 min read
NET INCOME PER ORDINARY SHARE
The following table sets forth the basic and diluted net income per ordinary share computation and provides a reconciliation of the numerator and denominator for the years presented:
Year ended December 31,
202520242023
(In thousands)
Numerator:
Net income$137,372 $125,808 $94,108 
Net income per ordinary share calculation$137,372 $125,808 $94,108 
Denominator:
Weighted average number of ordinary shares outstanding
—Basic38,158,67841,079,67240,788,448
—Diluted38,232,89941,201,02640,922,590
Net income per ordinary share attributable to ordinary shareholders
—Basic$3.60 $3.06 $2.31 
—Diluted$3.59 $3.05 $2.30 
For the year ended December 31, 2023, 29,400 Class A ordinary shares to be issued to the Underwriter upon the exercise of the warrant (disclosed in the Note 14) were not included in the calculation of dilutive net income per ordinary share under the treasury stock method, as their exercise prices were higher than the fair market value of the Company’s ordinary shares, representing out-of-the-money impact from the holder’s perspective. All warrants were exercised in February 2024.
The potential dilutive securities that have been included in the calculation of diluted net income per ordinary share are presented as follow:
Year ended December 31,
202520242023
RSUs74,221 117,463 103,879 
Restricted Shares (“RS”)
— 
3,891 
30,263 

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.

Other Available Disclosures

Income TaxesRevenuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsStock CompensationNew StandardsPay vs Performance