LIQUIDITY SERVICES INC Earnings Per Share Disclosure
4. Earnings Per Share
The Company calculates basic EPS by dividing net income by the weighted-average number of common shares outstanding during the reporting period, excluding unvested restricted stock awards.
The Company calculates diluted EPS by dividing net income by the weighted-average number of common shares and potentially dilutive common shares outstanding during the reporting period using the treasury stock method.
The Company's potentially dilutive common shares include stock options, restricted stock units, and restricted stock awards. For such awards that have performance- or market-conditions, they are considered dilutive only when those performance- or market-conditions have been satisfied as of the reporting date; however, in periods of a net loss, the Company's diluted EPS will equal its basic EPS, as all its potential common shares are anti-dilutive in that case. In periods of net income, the calculation of diluted net income per share will exclude all anti-dilutive common shares.
The computation of basic and diluted net income per share is as follows:
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Year Ended September 30, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income |
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$ |
28,093 |
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$ |
19,991 |
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$ |
20,978 |
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Denominator: |
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Basic weighted average shares outstanding |
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30,932,459 |
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30,496,306 |
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31,075,648 |
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Dilutive impact of stock options, RSUs and RSAs |
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1,478,616 |
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1,137,886 |
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998,913 |
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Diluted weighted average shares outstanding |
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32,411,075 |
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31,634,192 |
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32,074,561 |
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Basic income per common share |
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$ |
0.91 |
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$ |
0.66 |
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$ |
0.68 |
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Diluted income per common share |
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$ |
0.87 |
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$ |
0.63 |
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$ |
0.65 |
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Stock options, RSUs and RSAs excluded from income per diluted share because their effect would have been anti-dilutive |
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401,418 |
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1,286,030 |
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1,808,606 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Nov 20, 2025 | Showing above |
| 2024 | Dec 12, 2024 | |
| 2023 | Dec 7, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 9, 2021 | |
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.