iRhythm Holdings, Inc.IRTC

iRhythm Holdings, Inc. Earnings Per Share Disclosure

10-KFiled Feb 19, 20261 min read
NET LOSS PER COMMON SHARE
As the Company had net losses for the years ended December 31, 2025, 2024, and 2023, all potential common shares were determined to be anti-dilutive. The following table sets forth the computation of the basic and diluted net loss per share during the years ended December 31, 2025, 2024, and 2023 (in thousands, except per share data):
Year Ended December 31,
202520242023
Numerator:
Net loss$(44,551)$(113,289)$(123,406)
Denominator:
Weighted-average shares used to compute net loss per common share, basic and diluted32,004 31,196 30,528 
Net loss per common share, basic and diluted$(1.39)$(3.63)$(4.04)

The following outstanding shares of potentially dilutive securities have been excluded from diluted net loss per common share for the years ended December 31, 2025, 2024, and 2023 because their inclusion would be anti-dilutive (in thousands):
Year Ended December 31,
202520242023
Options to purchase common stock98 283 307 
RSUs and PRSUs1
2,262 2,289 2,438 
Senior convertible notes4,492 4,492 — 
Total6,852 7,064 2,745 
1PRSUs are based on the maximum number of PRSUs in the key executive grant agreements. The actual number of PRSUs granted will be based on company performance criteria and relative TSR, as discussed in Note 13, Equity Incentive Plan and Stock-Based Compensation.

Historical Timeline

Fiscal YearFiled
2025Feb 19, 2026Showing above
2024Feb 20, 2025

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.

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