Earnings per Share
The following table reconciles the numerators and denominators of the basic and diluted earnings (loss) per share computation for the periods presented:
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator for basic and diluted earnings per share: | | | | | |
| Net income | $ | 19,928 | | | $ | 17,227 | | | $ | 4,747 | |
| Denominator for basic earnings per common share: | | | | | |
| Weighted average common shares outstanding - Basic | 12,538 | | | 12,412 | | | 12,316 | |
| Denominator for diluted earnings per share: | | | | | |
| Weighted average common shares outstanding | 12,538 | | | 12,412 | | | 12,316 | |
| Dilutive effect of stock-based compensation awards | 157 | | | 142 | | | 67 | |
| Weighted average common shares outstanding - Diluted | 12,695 | | | 12,554 | | | 12,383 | |
| Earnings per share: | | | | | |
| Basic | $ | 1.59 | | | $ | 1.39 | | | $ | 0.39 | |
| Diluted | $ | 1.57 | | | $ | 1.37 | | | $ | 0.38 | |
The following table summarizes the actual number of stock-based compensation awards that were excluded from the determination of diluted earnings per share due to their anti-dilutive effect for the periods presented:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | 89,667 | | | 83,917 | | | 129,751 | |
| Restricted stock and RSUs | — | | | 13,345 | | | 10,984 | |
| | | | | |
| 89,667 | | | 97,262 | | | 140,735 | |
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.