Basic and Diluted Net Income (Loss) per Share

The Company uses the two-class method to calculate net income (loss) per share. No dividends were declared or paid for the years ended December 31, 2025, 2024, and 2023. Undistributed earnings for each period are allocated equally to participating securities based on the contractual participation rights of the security to share in the current earnings as if all current period earnings had been distributed. The Company’s basic net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding during the period. The Company’s diluted net income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted average shares of common stock outstanding and, when dilutive, potential common shares outstanding during the period. The dilutive effect of potential common shares is reflected in diluted net income (loss) per share by application of the treasury stock method and if-converted method.

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share attributable to common stockholders (in thousands, except share and per share amounts):


	Year Ended December 31,
	2025				2024				2023
	Class A		Class V		Class A		Class V		Class A		Class V
Numerator:
Net income (loss) attributable to common stockholders, basic	$	123,585	$	4,780	$	121,148	$	4,890	$	(22,604)	$	(942)
Amortization of debt discount and issuance costs for 2030 Convertible Notes	3,923		—		—		—		—		—
Reallocation of undistributed earnings	488		(488)		431		(431)		—		—
Net income (loss) attributable to common stockholders, diluted	127,996		4,292		121,579		4,459		(22,604)		(942)

Denominator:
Weighted average shares outstanding, basic	216,581,645		8,377,623		207,561,414		8,377,623		200,967,089		8,377,623
Effect of dilutive potential common shares	33,271,279		—		20,869,839		—		—		—
Weighted average shares outstanding, diluted	249,852,924		8,377,623		228,431,253		8,377,623		200,967,089		8,377,623

Basic net income (loss) per share	$	0.57	$	0.57	$	0.58	$	0.58	$	(0.11)	$	(0.11)
Diluted net income (loss) per share	$	0.51	$	0.51	$	0.53	$	0.53	$	(0.11)	$	(0.11)

Basic net income (loss) per share is the same as diluted net income (loss) per share attributable to common stockholders for the year ended December 31, 2023, because the inclusion of potential shares of common stock would have been anti-dilutive for the period presented.

The following table discloses weighted-average Class A securities that were not included in the computation of diluted net income (loss) per share as their inclusion would have been anti-dilutive:


	Year Ended December 31,
	2025	2024	2023
RSUs	2,660,472	360,601	15,220,986
Common stock issuable under the ESPP	356,339	—	404,648
Stock options	—	156,558	21,278,043
Common stock issued subject to vesting	—	—	1,090,181
PRSUs	—	—	928,642
Warrants to purchase Class A common stock	—	—	561,058

The Capped Calls entered into in connection with the 2030 Convertible Notes were excluded from the calculation of diluted net income (loss) per share as the effect would have been anti-dilutive. There were no Class V securities that were excluded in the computation of diluted net income (loss) per share for the periods presented.

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.

Hims & Hers Health, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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