MIMEDX GROUP, INC. Earnings Per Share Disclosure
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income from continuing operations | $ | 48,578 | $ | 41,998 | $ | 67,439 | |||||||||||
| Income (loss) from discontinued operations, net of tax | — | 421 | (9,211) | ||||||||||||||
| Net income | 48,578 | 42,419 | 58,228 | ||||||||||||||
| Adjustments to reconcile to net income available to common stockholders: | |||||||||||||||||
| Accumulated dividend on previously converted Series B Preferred Stock | — | — | 6,753 | ||||||||||||||
| Preferred share repurchase in excess of book value | — | — | 4,890 | ||||||||||||||
| Total adjustments | — | — | 11,643 | ||||||||||||||
| Net income available to common stockholders from continuing operations | $ | 48,578 | $ | 41,998 | $ | 55,796 | |||||||||||
| Weighted average common shares outstanding | 147,793,069 | 146,979,354 | 116,495,810 | ||||||||||||||
| Basic net income (loss) per common share: | |||||||||||||||||
| Continuing operations | $ | 0.33 | $ | 0.29 | $ | 0.48 | |||||||||||
| Discontinued operations | — | — | (0.08) | ||||||||||||||
Basic net income per common share | $ | 0.33 | $ | 0.29 | $ | 0.40 | |||||||||||
| Year ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income available to common stockholders from continuing operations | $ | 48,578 | $ | 41,998 | $ | 55,796 | |||||||||||
| Adjustments: | |||||||||||||||||
| Dividends on previously converted Series B Preferred Stock | — | — | 6,466 | ||||||||||||||
| Preferred share repurchase in excess of book value | — | — | 5,177 | ||||||||||||||
| Less: antidilutive adjustments | — | — | (5,177) | ||||||||||||||
| Total adjustments | — | — | 6,466 | ||||||||||||||
| Numerator | |||||||||||||||||
| Net income available to common stockholders from continuing operations | 48,578 | 41,998 | 62,262 | ||||||||||||||
| Income (loss) from discontinued operations, net of tax | — | 421 | (9,211) | ||||||||||||||
| Weighted average common shares outstanding | 147,793,069 | 146,979,354 | 116,495,810 | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Potential common shares (a) | |||||||||||||||||
| Previously converted Series B Preferred Stock | — | — | 27,457,905 | ||||||||||||||
| Restricted stock unit awards | 1,252,226 | 1,447,217 | 1,452,153 | ||||||||||||||
| Outstanding stock options | 526,105 | 473,015 | 396,779 | ||||||||||||||
| Performance stock unit awards | 153,107 | 149,611 | 137,425 | ||||||||||||||
| Restricted stock awards | — | — | 22,136 | ||||||||||||||
| Employee stock purchase plan | — | — | 254 | ||||||||||||||
| Total adjustments | 1,931,438 | 2,069,843 | 29,466,652 | ||||||||||||||
| Weighted average common shares outstanding adjusted for potential common shares | 149,724,507 | 149,049,197 | 145,962,462 | ||||||||||||||
| Diluted net income (loss) per common share: | |||||||||||||||||
| Continuing operations | $ | 0.32 | $ | 0.28 | $ | 0.43 | |||||||||||
| Discontinued operations | 0.00 | 0.00 | (0.06) | ||||||||||||||
Diluted net income per common share | $ | 0.32 | $ | 0.28 | $ | 0.37 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Repurchase of Series B Preferred Stock | — | — | 1,219,348 | ||||||||||||||
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.