Note 14. Net Loss Per Share

Basic net loss per share is computed by dividing the net loss by the weighted-average number of common shares outstanding for the period. Diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method.

Basic net loss per share is the same as diluted net loss per share because the Company reported net losses for all periods presented. The following table sets forth the computation of basic and diluted net loss per share for the periods presented (in thousands, except per share data):

 

Year Ended June 30,

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

Net loss

$

(18,217

)

 

$

(32,021

)

 

$

(69,425

)

Denominator:

 

 

 

 

 

 

 

 

Weighted-average shares used to compute net loss per share, basic and diluted

 

78,710

 

 

 

71,488

 

 

 

64,295

 

Net loss per share, basic and diluted

$

(0.23

)

 

$

(0.45

)

 

$

(1.08

)

The Company excluded the following potential shares of common stock from the calculation of diluted net loss per share because their effect would be anti-dilutive (in thousands):

 

 

Year Ended June 30,

 

 

 

2025

 

 

2024

 

 

2023

 

Outstanding stock options to purchase common stock

 

 

2,628

 

 

 

6,866

 

 

 

10,137

 

Unvested PSUs and RSUs

 

 

5,316

 

 

 

5,137

 

 

 

5,803

 

Shares issuable under ESPP

 

 

57

 

 

 

12

 

 

 

15

 

Total

 

 

8,001

 

 

 

12,015

 

 

 

15,955

 

 

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.