Harmony Biosciences Holdings, Inc. Earnings Per Share Disclosure
17. EARNINGS PER SHARE
Basic earnings per share is calculated by diving net income by the weighted average number of shares of common stock outstanding. For the years ended December 31, 2025, 2024 and 2023, respectively, the Company calculated Diluted net income per common share is computed under the treasury stock method by using the weighted average number of shares of common stock outstanding, plus, for periods with net income attributable to common stockholders, the potential dilutive effects of stock options, stock appreciation rights and restricted stock units.
The following table sets forth the computation of basic and diluted net income (loss) per share:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | 2023 | |||||
Numerator | |
| | | |||||
Net income | $ | 158,687 | $ | 145,493 | $ | 128,853 | |||
Denominator |
| |
| |
| | |||
Net income per share of common stock - basic | $ | 2.76 | $ | 2.56 | $ | 2.17 | |||
Net income per share of common stock- diluted | $ | 2.71 | $ | 2.51 | $ | 2.13 | |||
Weighted average number of shares of common stock - basic |
| 57,492,277 |
| 56,885,455 |
| 59,469,648 | |||
Weighted average number of shares of common stock - diluted |
| 58,544,570 |
| 57,869,915 |
| 60,372,397 | |||
Securities outstanding that were included in the computation above, utilizing the treasury stock method are as follows:
| Year Ended December 31, | ||||||||
2025 | | 2024 | 2023 | ||||||
Stock options, SARs, and RSUs to purchase common stock | 1,052,293 | 984,460 | 902,749 | ||||||
Potential common shares issuable upon conversion of preferred stock and exercise of stock options that were excluded from the computation of diluted weighted-average shares outstanding excluded from the numerator are as follows:
Year Ended December 31, | |||||||||
| 2025 | | 2024 | 2023 | |||||
Stock options, SARs, and RSUs to purchase common stock | 7,639,601 |
| 6,854,883 | 5,786,881 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 28, 2022 | |
| 2020 | Mar 25, 2021 | |
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.