Earnings per share
The following table sets forth the computation of basic and diluted EPS of common stock as follows:
| | | | | | | | | | | | | | | | | |
| For the years ended December 31, |
| 2025 | | 2024 | | 2023 |
| (in thousands, except per share data) |
| Numerator for basic and diluted loss per share | | | | | |
| Net income/(loss) | $ | 9,668 | | | $ | 4,041 | | | $ | (1,765) | |
| | | | | |
| Denominator: | | | | | |
| Weighted-average shares outstanding – basic | 84,539 | | | 77,465 | | | 75,193 | |
| Net effect of dilutive stock options and restricted stock units | 2,353 | | | 2,509 | | | — | |
| Weighted-average shares outstanding – diluted | 86,892 | | | 79,974 | | | 75,193 | |
| | | | | |
| Net income/(loss) per share | | | | | |
| Basic | $ | 0.11 | | | $ | 0.05 | | | $ | (0.02) | |
| Diluted | $ | 0.11 | | | $ | 0.05 | | | $ | (0.02) | |
The following potentially dilutive common shares, presented based on weighted average potential shares outstanding during each period were excluded from the calculation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
| | | | | | | | | | | | | | | | | | | | |
| | For the years ended December 31, |
| | 2025 | | 2024 | | 2023 |
| | (in thousands) |
| Stock options to purchase common stock | | 1,612 | | | 1,897 | | | 4,823 | |
| Restricted stock units | | 298 | | | 23 | | | 1,488 | |
| Performance stock units | | 754 | | | 1,077 | | | 912 | |
| Total | | 2,664 | | | 2,997 | | | 7,223 | |
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.