HARMONIC INC. Earnings Per Share Disclosure
NOTE 12: NET INCOME PER SHARE
Basic earnings per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the convertible Notes.
As noted in Note 8, “Debt,” the principal amount of the 2024 Notes was settled in cash while the conversion spread value was settled in shares.
The following table sets forth the computation of the basic and diluted net income per share:
|
Year Ended December 31, |
|||||||
(in thousands, except per share amounts) |
2025 |
|
2024 |
|
2023 |
|||
Numerator: |
|
|
|
|
|
|
|
|
Net income from continuing operations |
$ |
1,216 |
|
$ |
50,718 |
|
$ |
88,338 |
Net loss from discontinued operations |
|
(44,526) |
|
|
(11,501) |
|
|
(4,344) |
Net income |
$ |
(43,310) |
|
$ |
39,217 |
|
$ |
83,994 |
Denominator: |
|
|
|
|
|
|
|
|
Weighted average number of shares outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
113,660 |
|
|
115,120 |
|
|
111,651 |
2024 Notes |
|
— |
|
|
1,435 |
|
|
4,320 |
Restricted stock units |
|
500 |
|
|
921 |
|
|
1,355 |
Stock purchase rights under ESPP |
|
22 |
|
|
6 |
|
|
33 |
Diluted |
|
114,182 |
|
|
117,482 |
|
|
117,359 |
Net income (loss) per share: |
|
|
|
|
|
|
|
|
Basic: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.01 |
|
$ |
0.44 |
|
$ |
0.79 |
Discontinued operations |
|
(0.39) |
|
|
(0.10) |
|
|
(0.04) |
Basic earnings per share |
$ |
(0.38) |
|
$ |
0.34 |
|
$ |
0.75 |
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
Continuing operations |
$ |
0.01 |
|
$ |
0.43 |
|
$ |
0.75 |
Discontinued operations |
|
(0.39) |
|
|
(0.10) |
|
|
(0.03) |
Diluted earnings per share |
$ |
(0.38) |
|
$ |
0.33 |
|
$ |
0.72 |
The following table set forth the potential dilutive shares that were excluded from the computation of diluted net income per share, because their effects were anti-dilutive:
|
Year Ended December 31, |
|||||||
(in thousands) |
2025 |
|
2024 |
|
2023 |
|||
Restricted stock units |
|
990 |
|
|
539 |
|
|
276 |
Stock purchase rights under the ESPP |
|
186 |
|
|
— |
|
|
— |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 14, 2025 | |
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.