McEwen Inc. Earnings Per Share Disclosure
NOTE 14 NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is calculated using the treasury stock method for options and warrants and the if-converted method for the convertible senior unsecured notes. Under the if-converted method, interest expense, net of tax, is added back to net income and the weighted-average shares outstanding are increased by the shares issuable upon conversion of the notes. In applying the treasury stock method, instruments with an exercise price greater than the average quoted market price of the common shares for the period are not included in the calculation, as the impact would be anti-dilutive.
For periods in which the Company has reported a net loss, diluted net loss per share is computed in the same manner as basic net loss per share because potentially dilutive instruments, including the conversion option embedded in the convertible senior unsecured notes, are generally anti-dilutive during such periods.
Below is a reconciliation of the basic and diluted weighted average number of common shares and the computations for basic and diluted net income (loss) per share for the years ended December 31, 2025, 2024 and 2023:
Year ended December 31, | ||||||||
2025 | | 2024 | | 2023 | ||||
(amounts in thousands, unless otherwise noted) | ||||||||
Basic Earnings per Share | ||||||||
Net income (loss) available to common stockholders — Basic earnings per share | $ | 34,434 | $ | (43,691) | $ | 55,299 | ||
Weighted average common shares outstanding | 54,046 | 51,021 | 47,544 | |||||
Basic net income (loss) per share: | $ | 0.64 | $ | (0.86) | $ | 1.16 | ||
Diluted Earnings per Share | ||||||||
Net income (loss) available to common stockholders | $ | 34,434 | $ | (43,691) | $ | 55,299 | ||
Add back: Interest effect of convertible notes, net of tax | 4,093 | — | — | |||||
Net income (loss) available to common stockholders — Diluted earnings per share | $ | 38,527 | $ | (43,691) | $ | 55,299 | ||
| ||||||||
Weighted average common shares outstanding |
| 54,046 |
| 51,021 | 47,544 | |||
Dilutive effect of stock options, restricted stock units, and warrants | 261 | — | — | |||||
Dilutive effect of convertible notes | 11,253 | — | — | |||||
Weighted average diluted shares | 65,560 | 51,021 | 47,544 | |||||
Diluted net income (loss) per share | $ | 0.59 | $ | (0.86) | $ | 1.16 | ||
For the year ended December 31, 2025, the weighted average number of common shares was increased by 260,815 incremental shares to reflect the impact of dilutive instruments, while 593,577 options were anti-dilutive and excluded.
Convertible senior unsecured notes were assumed to have been converted at their issuance date of February 11, 2025. Accordingly, $4.1 million of interest expense related to the notes, net of tax, was added back to net income, and the weighted-average number of common shares outstanding was increased by 11,253,461 shares representing the shares issuable upon conversion.
For the year ended December 31, 2024, all outstanding options to purchase shares of common stock and share purchase warrants were excluded from the respective computations of diluted loss per share, as the Company was in a loss position, and all potentially dilutive instruments were anti-dilutive and therefore not included in the calculation of diluted net loss per share.
For the year ended December 31, 2023, the outstanding options for which the average market price during the year exceeded the exercise price were anti-dilutive under the treasury stock method and, therefore, not included in the calculation of diluted income per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 17, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 7, 2022 | |
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.