908 Devices Inc. Earnings Per Share Disclosure
18. Net Income (Loss) per Share
Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):
| Year Ended December 31, |
| |||||
2025 | | 2024 |
| ||||
Net income (loss) per share attribute table to common stockholders: | |||||||
Numerator: |
| | | ||||
Net loss from continuing operations attributable to common stockholders | $ | (33,277) | $ | (53,140) | |||
Net income (loss) from discontinued operations attributable to common stockholders |
| 52,766 |
| (19,066) | |||
Net income (loss) attributable to common stockholders | $ | 19,489 | $ | (72,206) | |||
Denominator: |
| |
| | |||
Weighted average common shares outstanding - basic and diluted | 35,898,542 | 34,076,321 | |||||
Net loss from continuing operations per share attributable to common stockholders, basic and diluted | (0.93) | (1.56) | |||||
Net income (loss) from discontinued operations per share attributable to common stockholders, basic and diluted | 1.47 | (0.56) | |||||
Net income (loss) per share attributable to common stockholders, basic and diluted | 0.54 | (2.12) | |||||
The Company utilizes the control number concept in the computation of diluted earnings per share to determine whether potential common stock equivalents are dilutive. The control number used is net loss from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Since the Company had a net loss from continuing operations for all periods presented, no dilutive effect has been recognized in the calculation of income from discontinued operations per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss from continuing operations and net (loss) income from discontinued operations per share attributable to common stockholders are the same.
Diluted net (loss) income per common share is computed by dividing net (loss) income by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding warrants, stock options, restricted stock units and shares to be purchased under the Company’s employee stock purchase plan.
For periods in which the Company reports a net loss from continuing operations, regardless of net (loss) income from discontinued operation, diluted net (loss) income per share attributable to common stockholders is the same as basic net (loss) income per share attributable to common stockholders since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. As the Company has reported a net loss from continuing operations during the year ended December 31, 2025 and 2024, basic net (loss) income per share is the same as diluted net loss per share.
The Company’s potential dilutive securities have been excluded from the computation of diluted net loss per share as the effect would be to reduce the net loss per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same. The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
December 31, | ||||
| 2025 | | 2024 | |
Warrants to purchase common stock | 92,703 | 92,703 | ||
Options to purchase common stock | 2,724,797 |
| 2,607,362 | |
Performance stock units | 119,836 | 105,878 | ||
Restricted stock units | 3,350,937 | 2,591,139 | ||
| 6,288,273 |
| 5,397,082 | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 9, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
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.