Net Loss per Share
The Company presents both basic earnings per share (“EPS”) and diluted EPS. Basic EPS excludes potential dilution and is computed by dividing net loss by the weighted-average number of shares of common stock outstanding for the period. Diluted EPS reflects the potential dilution that could occur if stock options were exercised, stock awards vested and if the 2028 Convertible Notes and 2025 Convertible Notes were converted. The potential dilution from stock awards is accounted for using the treasury stock method based on the average market value of the Company’s common stock. The potential dilution from conversion of the 2028 Convertible Notes and 2025 Convertible Notes is accounted for using the if-converted method, which requires that all of the shares of the Company’s common stock issuable upon conversion of the 2028 Convertible Notes and the 2025 Convertible Notes will be included in the calculation of diluted EPS assuming conversion of the 2028 Convertible Notes and the 2025 Convertible Notes at the beginning of the reporting period (or at time of issuance, if later).
The following table shows the calculations for the years ended December 31, 2025, 2024 and 2023 (in thousands, except per share amounts):
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| | 2025 | | 2024 | | 2023 |
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| NET LOSS | $ | (108,025) | | | $ | (78,726) | | | $ | (87,968) | |
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| Basic weighted average common shares outstanding | 128,101 | | | 126,658 | | | 125,502 | |
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| Diluted weighted average shares outstanding | 128,101 | | | 126,658 | | | 125,502 | |
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| Basic net loss per share | $ | (0.84) | | | $ | (0.62) | | | $ | (0.70) | |
| Diluted net loss per share | $ | (0.84) | | | $ | (0.62) | | | $ | (0.70) | |
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The following potential dilutive shares were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive for the years ended December 31, 2025, 2024 and 2023:
| | | | | | | | | | | | | | | | | |
| 2025 | | 2024 | | 2023 |
| Stock options | 59 | | | 490 | | | 460 | |
| Restricted stock awards | 859 | | | 1,049 | | | 854 | |
| 2025 Convertible Notes | — | | | 5,538 | | | 5,538 | |
| 2028 Convertible Notes | 5,215 | | | 5,215 | | | 5,215 | |
In addition, 552,208 and 686,157 shares of PSU awards are excluded from the computation of diluted EPS for the years ended December 31, 2025 and 2024, respectively, as the contingency had not been satisfied.
In connection with the 2028 Convertible Notes offering, on January 11, 2021, the Company entered into separate, privately negotiated convertible note hedge transactions (collectively, the “Capped Call Transactions”) with option counterparties pursuant to capped call confirmations at a cost of approximately $29.3 million. The potential effect of the Capped Call Transactions was excluded from the calculation of diluted net loss per share in the year ended December 31, 2025 as the Company’s common stock closing price of $11.76 on December 31, 2025 did not exceed the conversion price of $85.75 per share. The Capped Call Transactions are not reflected in diluted net loss per share as they are anti-dilutive.