Disc Medicine, Inc. Earnings Per Share Disclosure
12. Net Loss Per Share
Basic and diluted net loss per share is computed by dividing net loss by the weighted-average common shares outstanding. The weighted-average common shares outstanding used in the basic and diluted net loss per share calculation includes pre-funded warrants issued in connection with the Company’s underwritten offerings. As of December 31, 2025, 2024 and 2023, 445,422, 204,081, and 204,081 pre-funded warrants were outstanding, respectively.
The following table sets forth the computation of the Company’s basic and diluted net loss per share (in thousands, except share and per share data):
|
|
Year Ended |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net loss |
|
$ |
(212,184 |
) |
|
$ |
(109,357 |
) |
|
$ |
(76,429 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted-average common shares outstanding, basic and diluted |
|
|
35,295,663 |
|
|
|
27,606,022 |
|
|
|
22,315,877 |
|
Net loss per share, basic and diluted |
|
$ |
(6.01 |
) |
|
$ |
(3.96 |
) |
|
$ |
(3.42 |
) |
The Company has generated a net loss in all periods presented, so the basic and diluted net loss per share are the same, as the inclusion of the potentially dilutive securities would be anti-dilutive. As of December 31, 2025, 2024 and 2023, the Company excluded the following potential common shares from the computation of diluted net loss per share because including them would have had an anti-dilutive effect:
|
|
As of December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Options to purchase common stock |
|
|
3,269,290 |
|
|
|
2,870,364 |
|
|
|
2,459,037 |
|
Restricted stock units |
|
|
1,142,445 |
|
|
|
475,140 |
|
|
|
— |
|
Employee stock purchase program |
|
|
13,866 |
|
|
|
9,003 |
|
|
|
4,878 |
|
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.