Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of Common Stock outstanding for the period. Diluted earnings (loss) per share is based on the weighted average number of shares outstanding for the period, including the dilutive effect of equity awards.
Basic and diluted earnings (loss) per share of Common Stock was computed as follows:
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| Year Ended December 31, 2024 |
| Net Loss | | Average Shares Outstanding | | Loss Per Share |
| (in thousands, except for share and per share amounts) |
| Basic | $ | (41,082) | | | 37,172,635 | | | $ | (1.11) | |
| Unvested restricted stock and stock units | — | | | — | | | — | |
| Diluted | $ | (41,082) | | | 37,172,635 | | | $ | (1.11) | |
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| Year Ended December 31, 2023 |
| Net Loss | | Average Shares Outstanding | | Loss Per Share |
| (in thousands, except for share and per share amounts) |
| Basic | $ | (32,213) | | | 33,282,234 | | | $ | (0.97) | |
| Unvested restricted stock and stock units | — | | | — | | | — | |
| Diluted | $ | (32,213) | | | 33,282,234 | | | $ | (0.97) | |
The diluted earnings (loss) per share calculation excludes all stock options, unvested restricted stock, unvested restricted stock units, and unvested performance stock units for the years ended December 31, 2024 and 2023 because their inclusion would be anti-dilutive given the Company was in a net loss position. The average number of securities that were excluded from diluted earnings (loss) per share that would potentially dilute earnings (loss) per share for the periods in which the Company experienced a net loss were as follows:
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| | 2024 | | 2023 |
| Year ended December 31, | 260,447 | | | 1,113,033 | |
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.