12.   Basic and Diluted Net Income (Loss) Per Share
 
Basic net income or earnings per share ("EPS") is calculated by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration for common stock equivalents.
 
The following tables provide a reconciliation of the numerator and denominator of the basic and diluted EPS calculations:
 
(in millions)  2025   2024   2023 
Numerator            
Consolidated net income (loss) $(159 $(154 $38 
Denominator            
Weighted average common shares outstanding - basic and dilutive 35.5   31.8   31.8 
            
Net income (loss) per share:           
Basic and diluted$(4.47 $(4.84 $1.19 
 
While there were no shares outstanding in prior periods, an allocation of 90% of the shares as of the completion of the Transaction have been provided for comparability purposes. Shares excluded from the current period calculation, as the effect of their conversion into shares of our common stock would be antidilutive, were 1.1 million.

Historical Timeline

Fiscal YearFiled
2025Nov 25, 2025Showing above
2023Feb 28, 2024

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.