Earnings Per Share
Basic net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period without consideration of the dilutive effect of conversion of preferred stock. Diluted net (loss) income per common share is calculated using the weighted-average number of common shares outstanding during the period plus the dilutive effect of conversion of unvested, restricted stock and preferred stock. The Series B and Series B-2 convertible preferred shares were anti-dilutive for fiscal years 2025, 2024 and 2023. The computations for basic and diluted net (loss) income per common share are as follows for the fiscal years ended October 31 (in thousands, except per share data):
 202520242023
Basic net (loss) income per common share:
Net (loss) income applicable to common stock$(16,482)$7,215 $8,899 
Effect of unvested, restricted stock(65)(119)(146)
Numerator: Net (loss) income for basic EPS(16,547)7,096 8,753 
Denominator: Weighted average common shares–basic17,834 17,715 17,603 
Basic net (loss) income per common share$(0.93)$0.40 $0.50 
Diluted net (loss) income per common share:
Net (loss) income for basic EPS$(16,547)$7,096 $8,753 
Effect of dilutive preferred stock— — — 
Numerator: Net (loss) income for diluted EPS(16,547)7,096 8,753 
Weighted average common shares–basic17,834 17,715 17,603 
Effect of dilutive preferred stock— — — 
Denominator: Weighted average common shares–diluted17,834 17,715 17,603 
Diluted net (loss) income per common share$(0.93)$0.40 $0.50 
Diluted net (loss) income per common share is calculated using the more dilutive method of either the two-class method or the treasury stock method. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends as participating shares are included in computing earnings per share. The Company’s unvested, restricted stock awards qualify as participating shares. Diluted net (loss) income per common share was calculated under the two-class method for fiscal years 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Dec 23, 2025Showing above
2021Jan 10, 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.