Net (Loss) Income Per Share
The computation of basic and diluted net (loss) income per Class A and B common share is as follows:
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| Fiscal Year Ended |
| June 29, 2025 | | June 30, 2024 | | July 2, 2023 |
| Class A | | Class B | | Total | | Class A | | Class B | | Total | | Class A | | Class B | | Total |
| Numerator | | | | | | | | | | | | | | | | | |
| Net (loss) income allocated to common stockholders | $ | (11,233) | | | $ | (7,837) | | | $ | (19,070) | | | $ | (56,239) | | | $ | (36,016) | | | $ | (92,255) | | | $ | 34,805 | | | $ | 18,531 | | | $ | 53,336 | |
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| Denominator | | | | | | | | | | | | | | | | | |
| Weighted-average common shares outstanding | 83,881,970 | | | 58,519,437 | | | 142,401,407 | | | 92,257,834 | | | 59,081,800 | | | 151,339,634 | | | 108,006,545 | | | 57,502,334 | | | 165,508,879 | |
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| Net (loss) income per share, basic | $ | (0.13) | | | $ | (0.13) | | | $ | (0.13) | | | $ | (0.61) | | | $ | (0.61) | | | $ | (0.61) | | | $ | 0.32 | | | $ | 0.32 | | | $ | 0.32 | |
For the fiscal year ended July 2, 2023, weighted-average Series A preferred stock of 15,147,840 (as-converted) was used in the calculation for the allocation of undistributed earnings between Class A common stock, Class B common stock, and Series A preferred stock.
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| Fiscal Year Ended |
| June 29, 2025 | | June 30, 2024 | | July 2, 2023 |
| Class A | | Class B | | Total | | Class A | | Class B | | Total | | Class A | | Class B | | Total |
| Numerator | | | | | | | | | | | | | | | | | |
| Net (loss) income allocated to common stockholders | $ | (11,233) | | | $ | (7,837) | | | $ | (19,070) | | | $ | (56,239) | | | $ | (36,016) | | | $ | (92,255) | | | $ | 34,805 | | | $ | 18,531 | | | $ | 53,336 | |
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| Denominator | | | | | | | | | | | | | | | | | |
| Weighted-average common shares outstanding | 83,881,970 | | | 58,519,437 | | | 142,401,407 | | | 92,257,834 | | | 59,081,800 | | | 151,339,634 | | | 108,006,545 | | | 57,502,334 | | | 165,508,879 | |
| Impact of incremental shares | * | | * | | * | | * | | * | | * | | 2,998,686 | | 7,313,831 | | 10,312,517 |
| Total | 83,881,970 | | | 58,519,437 | | | 142,401,407 | | | 92,257,834 | | | 59,081,800 | | | 151,339,634 | | | 111,005,231 | | | 64,816,165 | | | 175,821,396 | |
| | | | | | | | | | | | | | | | | |
| Net (loss) income per share, diluted | $ | (0.13) | | | $ | (0.13) | | | $ | (0.13) | | | $ | (0.61) | | | $ | (0.61) | | | $ | (0.61) | | | $ | 0.31 | | | $ | 0.29 | | | $ | 0.30 | |
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| Anti-dilutive shares excluded from diluted calculation* | | | | | 16,601,626 | | | | | | | 19,604,999 | | | | | | | |
*The impact of potentially dilutive convertible Preferred Stock, service based RSUs, market and service based RSUs, stock options, and purchases of shares under our ESPP were excluded from the diluted per share calculations because they would have been antidilutive.
Impact from incremental shares for our diluted per share calculation is as follows:
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| Fiscal Year Ended |
| June 29, 2025 | | June 30, 2024 | | July 2, 2023 |
| Class A | | Class B | | Total | | Class A | | Class B | | Total | | Class A | | Class B | | Total |
| Service based RSUs | 697,364 | | | — | | | 697,364 | | | 676,064 | | | — | | | 676,064 | | | 715,869 | | | — | | | 715,869 | |
| Market and service based RSUs | 500,141 | | | — | | | 500,141 | | | 191,325 | | | — | | | 191,325 | | | 229,125 | | | — | | | 229,125 | |
| Stock options | 48,205 | | | 5,505,461 | | | 5,553,666 | | | 1,635,453 | | | 6,203,400 | | | 7,838,853 | | | 1,974,071 | | | 7,313,831 | | | 9,287,902 | |
| ESPP | 98,295 | | | — | | | 98,295 | | | 66,841 | | | — | | | 66,841 | | | 79,621 | | | — | | | 79,621 | |
| Series A preferred stock (as-converted) | 9,752,160 | | | — | | | 9,752,160 | | | 10,831,916 | | | — | | | 10,831,916 | | | — | | | — | | | — | |
| Total | 11,096,165 | | | 5,505,461 | | | 16,601,626 | | | 13,401,599 | | | 6,203,400 | | | 19,604,999 | | | 2,998,686 | | | 7,313,831 | | | 10,312,517 | |
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.