ORTHOPEDIATRICS CORPKIDS

ORTHOPEDIATRICS CORP Earnings Per Share Disclosure

10-KFiled Mar 4, 20262 min read
NET LOSS PER SHARE
The following is a reconciliation of basic and diluted net loss per share attributable to common stockholders:
Year Ended December 31,
202520242023
Net loss$(39,648)$(37,822)$(20,974)
Less: Earnings allocated to participating securities— — — 
Net loss available to common shareholders$(39,648)$(37,822)$(20,974)
Denominator for basic and diluted net loss per share
Weighted average shares outstanding for basic23,459,425 23,077,704 22,675,477 
Weighted average shares outstanding for diluted
23,459,425 23,077,704 22,675,477 
Loss per share:
Basic$(1.69)$(1.64)$(0.92)
Diluted$(1.69)$(1.64)$(0.92)

Our basic and diluted net loss per share is computed using the two-class method.  The two-class method is an earnings allocation that determines net income per share for each class of common stock and participating securities according to their participation rights in dividends and undistributed earnings or losses.  Non-vested restricted stock that includes non-forfeitable rights to dividends are considered participating securities. 

For the periods presented with a net loss the weighted average shares outstanding remains consistent between basic and diluted as the effect would have been anti-dilutive.

The following table shows the contingently issuable and convertible equity shares that were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive:
Year Ended December 31,
202520242023
Restricted stock1,529,058 1,065,744 606,304 
1,529,058 1,065,744 606,304 
The contingently issuable shares in the table above do not include shares of our common stock associated with our obligation to issue a variable number of our common shares as a result of our recent acquisitions, or our convertible note. As of December 31, 2025, we are obligated to issue additional shares of our common stock to the sellers of certain acquisitions. See Note 3 - Business Combinations and Asset Acquisitions for additional information. We are obligated to issue additional shares of our common stock to Braidwell in the event that our Convertible Notes are converted into shares of common stock. See Note 9 - Debt and Credit Arrangements for additional information.

Historical Timeline

Fiscal YearFiled
2025Mar 4, 2026Showing above
2024Mar 5, 2025
2023Mar 8, 2024
2022Mar 1, 2023
2021Mar 3, 2022

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.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards