HEALTHEQUITY, INC. Earnings Per Share Disclosure
| Year ended January 31, | |||||||||||||||||
| (in thousands, except per share data) | 2025 | 2024 | 2023 | ||||||||||||||
| Numerator (basic and diluted): | |||||||||||||||||
| Net income (loss) | $ | 96,703 | $ | 55,712 | $ | (26,143) | |||||||||||
| Denominator (basic): | |||||||||||||||||
| Weighted-average common shares outstanding | 86,870 | 85,564 | 84,442 | ||||||||||||||
| Denominator (diluted): | |||||||||||||||||
| Weighted-average common shares outstanding | 86,870 | 85,564 | 84,442 | ||||||||||||||
| Weighted-average dilutive effect of stock options and restricted stock units | 1,958 | 1,393 | — | ||||||||||||||
| Diluted weighted-average common shares outstanding | 88,828 | 86,957 | 84,442 | ||||||||||||||
| Net income (loss) per share: | |||||||||||||||||
| Basic | $ | 1.11 | $ | 0.65 | $ | (0.31) | |||||||||||
| Diluted | $ | 1.09 | $ | 0.64 | $ | (0.31) | |||||||||||
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.