Lantheus Holdings, Inc. Earnings Per Share Disclosure
16. Net Income Per Common Share
A summary of net income per common share is presented below:
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Year Ended December 31, |
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(in thousands, except per share amounts) |
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2025 |
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2024 |
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2023 |
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Net income |
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$ |
233,559 |
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$ |
312,442 |
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$ |
326,661 |
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Basic weighted-average common shares outstanding |
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67,489 |
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69,199 |
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68,266 |
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Effect of dilutive stock options |
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175 |
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277 |
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346 |
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Effect of dilutive restricted stock |
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779 |
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1,433 |
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1,428 |
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Effect of convertible notes |
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— |
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742 |
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|
199 |
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Diluted weighted-average common shares outstanding |
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68,443 |
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71,651 |
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70,239 |
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Net income per common share: |
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Basic |
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$ |
3.46 |
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$ |
4.52 |
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$ |
4.79 |
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Diluted |
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$ |
3.41 |
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$ |
4.36 |
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$ |
4.65 |
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Antidilutive securities excluded from diluted net income per common share |
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1,552 |
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|
891 |
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421 |
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Impact of the Convertible Notes
The Company considers shares issuable upon conversion of the Notes to be common stock equivalents and are only included in the calculation of diluted net income per share when their effect is dilutive. The Company has the option to settle the Notes through cash settlement or a combination of cash and share settlement provided that the principal is settled in cash and the conversion spread is settled in cash or shares as elected by the Company. The Company considers the Notes to be participating securities through the two-class method. Per the terms of the indenture governing the Notes, the Company determined that if a cash dividend is paid that is greater than the stock price at the time such dividend is declared, the holders of the Notes will receive cash on an if-converted basis. While this feature is considered to be a participating right, basic income attributable to common shareholders is only impacted if the Company’s earnings per share exceeds the current share price, regardless of whether such dividend is declared. During the years ended December 31, 2025, 2024, and 2023, no such dividend was declared, and the Company’s earnings per share did not exceed its share price. The Company is required to settle the principal amount of the Notes in cash upon conversion, and convertibility of the Notes is dependent upon the Company’s share price. Therefore, the Company used the if-converted method for calculating the dilutive effect of the conversion option on diluted net income per share. The conversion option will have a dilutive impact on net income per share of Common Stock when the average price per share of the Company’s Common Stock for a given period exceeds the conversion price of the Notes of $79.81 per share. See Note 12, “Long-Term Debt and Other Borrowings, Net of Current Portion” to these consolidated financial statements for further discussion on the Notes.
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.