Note 13. Net Loss per Share

Net Loss per Share

Basic and diluted loss per share is computed by dividing net loss by the weighted-average common stock outstanding for the period. The Company had 15,815,253 and 15,159,753 pre-funded warrants outstanding as of December 31, 2025 and 2024, respectively. Each pre-funded warrant is exercisable for one share of common stock at an exercise price of $0.0001 per share. Due to the nominal exercise price of the pre-funded warrants, they are considered to be outstanding shares of common stock for purposes of the calculation of earnings per share. (in thousands, except for share and per share data):

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(311,351

)

 

$

(223,858

)

 

$

(146,962

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

68,998,592

 

 

 

62,346,666

 

 

 

55,365,499

 

Weighted average pre-funded warrants outstanding, basic and diluted

 

 

15,491,993

 

 

 

12,697,325

 

 

 

3,000,000

 

Total weighted average common stock outstanding, basic and diluted

 

 

84,490,585

 

 

 

75,043,991

 

 

 

58,365,499

 

Net Loss per share:

 

 

 

 

 

 

 

 

 

Net loss per share, basic and diluted

 

$

(3.69

)

 

$

(2.98

)

 

$

(2.52

)

 

The Company’s potentially dilutive securities, which include restricted stock units, and stock options, have been excluded from the computation of diluted net loss per share as the effect would be antidilutive. Therefore, the weighted-average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following from the computation of diluted net loss per share attributable to common stockholders at December 31, 2025, 2024 and 2023 because including them would have had an anti-dilutive effect:

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Unvested Restricted Stock Units

 

 

1,345,155

 

 

 

749,604

 

 

 

593,140

 

Options to purchase Common Stock

 

 

9,003,748

 

 

 

9,447,790

 

 

 

8,113,164

 

Total

 

 

10,348,903

 

 

 

10,197,394

 

 

 

8,706,304

 

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.