4. Earnings Per Share

 

Basic earnings per share (EPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed using the treasury stock method and reflects the potential dilution that could occur if the Company’s granted but unvested restricted stock units were to vest, resulting in the issuance of common stock that would then share in the earnings of the Company.

 

The following table presents the Company’s basic and diluted EPS for the years ended September 30, 2025, 2024 and 2023, dollars in thousands, except per share data:

 

   

Year ended September 30,

 
   

2025

   

2024

   

2023

 

Net income

  $ 46,444       33,935       23,243  

Weighted average number of shares of common stock outstanding

    22,936,194       22,774,825       22,725,088  

Effect of dilutive securities

    319,080       309,078       109,228  

Weighted average number of shares of common stock outstanding including the effect of dilutive securities

    23,255,274       23,083,903       22,834,316  
                         

Basic earnings per share

  $ 2.02       1.49       1.02  

Diluted earnings per share

  $ 2.00       1.47       1.02  

 

There were 32,096, 27,944 and 62,752 non-vested restricted stock units for the years ended September 30, 2025, 2024 and 2023, respectively, excluded from the calculation of diluted EPS as they are antidilutive.

Historical Timeline

Fiscal YearFiled
2025Dec 11, 2025Showing above
2024Dec 12, 2024
2023Dec 7, 2023
2022Dec 8, 2022
2021Dec 9, 2021
2020Dec 10, 2020
2019Dec 5, 2019
2018Dec 6, 2018
2017Dec 7, 2017
2016Dec 8, 2016
2015Dec 10, 2015

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.