NOTE 13. EARNINGS PER SHARE

Basic earnings per share of Company Common Stock is calculated by dividing the net income attributable to the Company during the period by the weighted average number of shares of Company Common Stock outstanding during the same period. Diluted earnings per share, if dilutive, includes the incremental effect of issuable shares from stock awards, as determined using the treasury stock method. Potentially dilutive shares are excluded from the computation of diluted income per share if they have an anti-dilutive effect in the period.

As a result of the Merger, as discussed in Note 1. Summary of Business, all historical per share data, number of shares and number of issuable shares from stock awards were retroactively adjusted by applying the Exchange Ratio to the Legacy Innovex basic and diluted weighted average number of shares. The following table summarizes the basic and diluted earnings per share calculations:

 

 

Year Ended December 31,

 

(in thousands, except per share data)

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (in thousands)

 

$

83,298

 

 

$

140,325

 

 

$

73,926

 

Denominator:

 

 

 

 

 

 

 

 

 

Basic weighted average number of shares outstanding

 

 

69,009,209

 

 

 

49,727,093

 

 

 

30,928,647

 

Dilutive effect of equity awards

 

 

372,203

 

 

 

899,911

 

 

 

1,409,871

 

Diluted weighted average number of shares

 

 

69,381,412

 

 

 

50,627,004

 

 

 

32,338,518

 

Income per share:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.21

 

 

$

2.82

 

 

$

2.39

 

Diluted

 

$

1.20

 

 

$

2.77

 

 

$

2.29

 

Potentially dilutive shares excluded as anti-dilutive

 

 

12,703

 

 

 

64,147

 

 

 

1,441,068

 

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Mar 3, 2025
2023Feb 27, 2024
2022Mar 1, 2023
2021Feb 23, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 27, 2019
2017Feb 27, 2018
2016Feb 28, 2017
2015Feb 25, 2016

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.