16. Net Income Per Share

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted net income per share is computed based on the weighted average number of common shares outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. For the years ended January 3, 2026, December 28, 2024, and December 30, 2023, dilutive potential common shares include stock options and unvested RSUs. Dilutive earnings per share (“EPS”) excludes all common shares if their effect is anti-dilutive.

The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the periods presented:

Year Ended
(amounts in millions, except share and per share data)
January 3, 2026December 28, 2024December 30, 2023
Numerator:
Net income attributable to common stockholders$53.8 $70.4 $135.7 
Denominator:
Weighted average number of shares:
Basic139,314,509 144,256,152 146,782,101 
Adjustment for dilutive securities428,175 542,948 99,956 
Diluted139,742,684 144,799,100146,882,057
Basic net income per share attributable to common stockholders$0.39 $0.49 $0.92 
Diluted net income per share attributable to common stockholders$0.38 $0.49 $0.92 

Historical Timeline

Fiscal YearFiled
2026Mar 4, 2026Showing above
2024Feb 26, 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.