InPoint Commercial Real Estate Income, Inc. Earnings Per Share Disclosure
Note 7 – Net Income (Loss) Per Share Attributable to Common Stockholders
Basic earnings per share attributable to common stockholders (“EPS”) is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS is computed by dividing net income (loss) attributable to common stockholders by the common shares plus common share equivalents. The Company’s common share equivalents are unvested restricted shares. The Company excludes antidilutive restricted shares from the calculation of weighted-average shares for diluted earnings per share. There were 457, 673 and 676 antidilutive restricted shares for the years ended December 31, 2025, 2024 and 2023, respectively. For further information about the Company’s restricted shares, see Note 11 – “Equity-Based Compensation.”
The following table is a summary of the basic and diluted net income (loss) per share attributable to common stockholders computation for the years ended December 31, 2025, 2024 and 2023:
|
|
Year Ended December 31, 2025 |
|
|
Year Ended December 31, 2024 |
|
|
Year Ended December 31, 2023 |
|
|||
Net (loss) income attributable to common stockholders |
|
$ |
(7,555 |
) |
|
$ |
6,688 |
|
|
$ |
(10,398 |
) |
Weighted average shares outstanding, basic |
|
|
10,118,536 |
|
|
|
10,116,738 |
|
|
|
10,114,606 |
|
Dilutive effect of restricted stock |
|
|
— |
|
|
|
984 |
|
|
|
— |
|
Weighted average shares outstanding, diluted |
|
|
10,118,536 |
|
|
|
10,117,722 |
|
|
|
10,114,606 |
|
Net (loss) income per share attributable to common stockholders, basic and diluted |
|
$ |
(0.75 |
) |
|
$ |
0.66 |
|
|
$ |
(1.03 |
) |
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.