EARNINGS PER SHARE
The following table sets forth the calculation of basic and diluted earnings per share:
| | | | | | | | | | | | | |
| For the years ended December 31, | | |
| 2025 | | 2024 | | |
| Numerator: | | | | | |
| Net income (loss) | $ | 19,175 | | | $ | (23,235) | | | |
| | | | | |
| | | | | |
| Denominator: | | | | | |
| Weighted average common shares outstanding - basic | 119,213,277 | | 118,441,580 | | |
| Dilutive effect of potential common shares from RSUs | 621,248 | | — | | |
| Dilutive effect of potential common shares from PSUs | 208,645 | | — | | |
| | | | | |
| Weighted average common shares outstanding - diluted | 120,043,170 | | 118,441,580 | | |
| Earnings (loss) per share: | | | | | |
| Basic | $ | 0.16 | | | $ | (0.20) | | | |
| Diluted | $ | 0.16 | | | $ | (0.20) | | | |
The following outstanding shares of common stock equivalents were excluded from the calculation of diluted earnings per share due to the anti-dilutive effect such shares would have on net loss per common share.
| | | | | | | | | | | | | |
| For the years ended December 31, | | |
| 2025 | | 2024 | | |
| Anti-dilutive shares excluded from calculation of diluted EPS: | | | | | |
| Warrants | 14,633,311 | | 14,633,311 | | |
| Stock options | 437,268 | | 437,268 | | |
| Restricted stock units | 149,563 | | 1,292,993 | | |
| Performance stock units | 1,997,113 | | 2,051,256 | | |
| Unvested Earn-Out Shares | 1,093,750 | | 1,093,750 | | |
| Total anti-dilutive shares | 18,311,005 | | 19,508,578 | | |
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.