Income Per Share Applicable to Common Stockholders
The following table sets forth the computations of income per share amounts applicable to common stockholders for the years indicated.
| | | | | | | | | | | |
| | Year Ended December 31, |
| (In thousands, except per share data) | 2025 | | 2024 |
| Numerator: | | | |
| Net income | 17,382 | | | 8,550 | |
| | | |
| Denominator: | | | |
| Weighted average common shares outstanding for basic earnings per share (1) | 79,178 | | | 75,929 | |
| Plus: incremental shares from assumed exercise of options and assumed vesting of restricted stock (2) | 6,258 | | | 2,196 | |
| Adjusted weighted average common shares outstanding for diluted earnings per share | 85,436 | | | 78,125 | |
| | | |
| Earnings Per Share: | | | |
| Basic net income per common share | $ | 0.22 | | | $ | 0.11 | |
| Diluted net income per common share | $ | 0.20 | | | $ | 0.11 | |
| | | |
(1) Includes a weighted average of approximately 167,000 nonvested shares of restricted stock for each of the years ended December 31, 2025 and 2024, which are participating securities that feature voting and dividend rights.
(2) For the years ended December 31, 2025 and 2024, the Company had outstanding restricted stock awards and stock options. Restricted stock awards were dilutive and included in the calculation of diluted earnings per share, while certain stock options outstanding were anti-dilutive and, accordingly, were excluded from the calculation of weighted-average common shares outstanding. The following table presents the anti-dilutive stock options for the periods presented:
| | | | | | | | | | | |
| | Year Ended December 31, |
| (In thousands) | 2025 | | 2024 |
| Stock options | 1,682 | | | 4,087 | |
| | | |
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.