MERCER INTERNATIONAL INC. Earnings Per Share Disclosure
Note 15. Net Loss Per Common Share
The reconciliation of basic and diluted net loss per common share for the years ended December 31, 2025, 2024 and 2023 was as follows:
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|
For the Year Ended December 31, |
|
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Net loss |
|
|
|
|
|
|
|
|
|
|||
Basic and diluted |
|
$ |
(497,889 |
) |
|
$ |
(85,141 |
) |
|
$ |
(242,056 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Net loss per common share |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
(7.44 |
) |
|
$ |
(1.27 |
) |
|
$ |
(3.65 |
) |
Diluted |
|
$ |
(7.44 |
) |
|
$ |
(1.27 |
) |
|
$ |
(3.65 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Weighted average number of common shares outstanding: |
|
|
|
|
|
|
|
|
|
|||
Basic (a) |
|
|
66,934,388 |
|
|
|
66,821,951 |
|
|
|
66,407,248 |
|
Diluted |
|
|
66,934,388 |
|
|
|
66,821,951 |
|
|
|
66,407,248 |
|
The calculation of diluted net loss per common share does not assume the exercise of any instruments that would have an anti-dilutive effect on net loss per common share. Instruments excluded from the calculation of net loss per common share because they were anti-dilutive for the years ended December 31, 2025, 2024 and 2023 were as follows:
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|
For the Year Ended December 31, |
|
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|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
PSUs |
|
|
4,393,692 |
|
|
|
4,379,461 |
|
|
|
3,672,227 |
|
Restricted shares |
|
|
111,732 |
|
|
|
21,054 |
|
|
|
54,227 |
|
RSUs |
|
|
273,501 |
|
|
|
— |
|
|
|
— |
|
Equity DSUs |
|
|
101,956 |
|
|
|
50,397 |
|
|
|
44,914 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 12, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 15, 2024 | |
| 2022 | Feb 16, 2023 | |
| 2021 | Feb 17, 2022 | |
| 2017 | Feb 16, 2018 | |
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.