Lovesac Co Earnings Per Share Disclosure
| (amounts in thousands, except per share data and share amounts) | 2025 | 2024 | 2023 | |||||||||||||||||
| Net income | $ | 11,556 | $ | 23,861 | $ | 26,488 | ||||||||||||||
Weighted-average number of common shares outstanding, basic | 15,502,469 | 15,427,975 | 15,198,754 | |||||||||||||||||
Effect of dilutive securities(1) | 1,289,002 | 1,032,408 | 756,914 | |||||||||||||||||
Weighted-average number of common shares outstanding, diluted | 16,791,471 | 16,460,383 | 15,955,668 | |||||||||||||||||
Basic net income per share | $ | 0.75 | $ | 1.55 | $ | 1.74 | ||||||||||||||
Diluted net income per share | $ | 0.69 | $ | 1.45 | $ | 1.66 | ||||||||||||||
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.