GYRE THERAPEUTICS, INC. Earnings Per Share Disclosure
14. |
EPS |
The dilutive effect of outstanding stock options and warrants is calculated using the treasury stock method. Stock options and warrants are anti-dilutive and excluded from the diluted net income per share attributable to common stock calculation if the exercise price exceeds the average market price of the common shares.
The following table sets forth the computation of EPS attributable to common stockholders, basic and diluted (in thousands, except share and per share data):
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Year Ended December 31, |
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2025 |
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2024 |
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Numerator: |
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Net income |
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$ |
9,880 |
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$ |
17,898 |
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Less: Allocation of undistributed earnings to noncontrolling interest |
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4,853 |
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5,813 |
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Net income attributable to common stockholders - basic |
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$ |
5,027 |
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$ |
12,085 |
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Less: Change in fair value of warrant liability |
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2,707 |
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|
7,167 |
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Net income attributable to common stockholders - diluted |
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$ |
2,320 |
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$ |
4,918 |
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Denominator: |
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Basic common shares outstanding: |
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Weighted average common shares outstanding |
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89,344,622 |
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85,094,948 |
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Weighted average shares used in calculating net income per share attributable to common stockholders, basic |
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89,344,622 |
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85,094,948 |
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Dilutive potential common shares: |
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Weighted average of common stock options |
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13,752,108 |
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16,407,847 |
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Weighted average of Convertible Preferred Stock (as converted) |
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— |
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528,442 |
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Weighted average of Preferred Stock Warrants (as converted) |
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83,307 |
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262,289 |
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Weighted average shares used in calculating net income per share attributable to common stockholders, diluted |
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103,180,037 |
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102,293,526 |
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Net income per share attributable to common stockholders: |
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Basic |
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$ |
0.06 |
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$ |
0.14 |
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Diluted |
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$ |
0.02 |
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$ |
0.05 |
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Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows:
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December 31, |
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2025 |
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2024 |
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Options to purchase common stock |
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439,464 |
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896,960 |
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Total |
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439,464 |
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896,960 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 30, 2023 | |
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.