LEGALZOOM.COM, INC. Earnings Per Share Disclosure
Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 15,427 | $ | 29,963 | $ | 13,953 | |||||||||||
Net income — basic and diluted | $ | 15,427 | $ | 29,963 | $ | 13,953 | |||||||||||
Denominator: | |||||||||||||||||
Weighted-average common stock used in computing net income per share — basic | 178,798 | 180,210 | 190,466 | ||||||||||||||
Effect of potentially dilutive securities | |||||||||||||||||
Options to purchase common stock | 53 | 754 | 1,380 | ||||||||||||||
RSUs | 5,808 | 1,893 | 2,558 | ||||||||||||||
Employee stock purchase plan | 31 | 8 | 11 | ||||||||||||||
Weighted-average common stock used in computing net income per share — diluted | 184,690 | 182,865 | 194,415 | ||||||||||||||
Net income per share — basic | $ | 0.09 | $ | 0.17 | $ | 0.07 | |||||||||||
Net income per share — diluted | $ | 0.08 | $ | 0.16 | $ | 0.07 | |||||||||||
As of December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Options to purchase common stock | 4,992 | 11,512 | 10,714 | ||||||||||||||
RSUs(1) | 17,347 | 13,932 | 7,426 | ||||||||||||||
Employee stock purchase plan | 33 | 64 | 43 | ||||||||||||||
Total | 22,372 | 25,508 | 18,183 | ||||||||||||||
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.