3.
(LOSS) INCOME PER SHARE

Basic (loss) income per share is computed on the basis of the weighted average number of common shares outstanding. Diluted (loss) income per share is computed on the basis of the weighted average number of common shares outstanding plus the effect of potentially dilutive common stock options, restricted stock and exchangeable NCM LLC common units using the treasury stock method. The components of basic and diluted (loss) income per NCM, Inc. share are as follows:

 

 

Years Ended

 

 

January 1, 2026

 

 

December 26, 2024

 

 

December 28, 2023

 

Net (loss) income attributable to NCM, Inc. (in millions)

 

$

(10.6

)

 

$

(22.3

)

 

$

705.2

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

94,182,400

 

 

 

95,865,998

 

 

 

47,882,944

 

Add: Dilutive effect of stock options, restricted stock, and
   exchangeable NCM LLC common membership units

 

 

 

 

 

 

 

 

691,639

 

Diluted

 

 

94,182,400

 

 

 

95,865,998

 

 

 

48,574,583

 

(Loss) income per NCM, Inc. share:

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.11

)

 

$

(0.23

)

 

$

14.73

 

Diluted

 

$

(0.11

)

 

$

(0.23

)

 

$

14.34

 

 

The effect of the 853 and 5,715 weighted average exchangeable NCM LLC common membership units held by the ESA Parties for the years ended January 1, 2026 and December 26, 2024, respectively, were excluded from the calculation of diluted weighted average shares and earnings per NCM, Inc. share as they were antidilutive. The weighted average exchangeable NCM LLC common membership units held by the ESA Parties for the year ended December 28, 2023 was 685,404 and are included in diluted weighted average shares. In addition, there were 5,440,529, 5,671,341 and 979,176, stock options and non-vested (restricted) shares for the years ended January 1, 2026, December 26, 2024 and December 28, 2023, respectively, excluded from the calculation as they were antidilutive. The Company’s non-vested (restricted) shares do not meet the definition of a participating security as the dividends will not be paid if the shares do not vest.

On August 3, 2023, the Company effected a one-for-ten (1:10) reverse stock split of its common stock, par value $0.01 per share. The reverse stock split, which was authorized by its Board of Directors, was approved by the Company’s stockholders on August 2, 2023. The reverse stock split reduced the number of outstanding shares of the Company’s common stock from 174,112,385 shares as of August 3, 2023, to 17,411,323 shares outstanding post-split.

Historical Timeline

Fiscal YearFiled
2026Feb 26, 2026Showing above
2024Mar 6, 2025
2023Mar 18, 2024
2022Apr 13, 2023
2021Mar 3, 2022
2020Mar 9, 2021
2019Feb 20, 2020
2018Feb 22, 2019
2017Mar 19, 2018
2016Feb 24, 2017
2015Feb 26, 2016

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.