18. Net Income (Loss) per Share

 

Basic income/loss per share (“EPS”) is computed by dividing net income/loss attributable to common stockholders by the weighted-average number of common shares outstanding during the period, excluding the effects of any potentially dilutive securities. Diluted EPS gives effect to all dilutive potential shares of common stock outstanding during the period, including stock options and RSUs, unless the inclusion would be anti-dilutive.

 

The computation of diluted EPS excludes the common stock equivalents of the following potentially dilutive securities because they were either contingently issuable shares or because their inclusion would be anti-dilutive:

 

 

   

Year Ended

December 31, 2024

  

Year Ended

December 31, 2023

  

Year Ended

December 31, 2022

 
RSUs    253,750    799,756    382,500 

 

The following table reconciles the numerators and denominators of the basic and diluted EPS computations for the years ended December 31, 2024, December 31, 2023 and December 31, 2022, respectively.

  

Income

(Numerator)

(in millions)

  

Shares

(Denominator)

  

Per-Share Amount,

Year Ended

December 31, 2024

 
Basic EPS               
Income available to common stockholders  $64.8    28,521,027   $2.27 
Effect of Dilutive Securities               
RSUs       678,348    (0.05)
Diluted EPS               
Income available to common stockholders  $64.8   $29,199,375   $2.22 

 

  

Income

(Numerator)

(in millions)

  

Shares

(Denominator)

  

Per-Share Amount,

Year Ended

December 31, 2023

 
Basic EPS               
Income available to common stockholders  $6.9    28,073,408   $0.25 
Effect of Dilutive Securities               
RSUs       1,141,175    (0.01)
Diluted EPS               
Income available to common stockholders  $6.9   $29,214,583   $0.24 

 

  

Income

(Numerator)

(in millions)

  

Shares

(Denominator)

  

Per-Share Amount,

Year Ended

December 31, 2022

 
Basic EPS               
Income available to common stockholders  $21.2    28,049,918   $0.76 
Effect of Dilutive Securities               
RSUs       1,042,937    (0.03)
Diluted EPS               
Income available to common stockholders  $21.2   $29,092,855   $0.73 

 

The calculation of Basic EPS includes the effects of 2,091,536, 2,425,236 and 1,703,142 shares for the years ended December 31 2024, 2023 and 2022, respectively, with respect to RSU awards that have vested but have not yet been issued.

 

 

INSPIRED ENTERTAINMENT, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2024 AND 2023, AND FOR THE YEARS ENDED

DECEMBER 31, 2024, 2023 AND 2022

 

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.