Nutanix, Inc. Earnings Per Share Disclosure
NOTE 11. NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to potentially dilutive common stock equivalents outstanding during the period, as their effect would be dilutive. Potentially dilutive common shares include shares issuable upon the exercise of stock options, the vesting of RSUs and PSUs, each purchase under the 2016 ESPP, and common stock issuable upon the conversion of convertible debt under the if-converted method.
In loss periods, basic net loss per share and diluted net loss per share are the same, as the effect of potential common shares is antidilutive and therefore excluded.
The computation of basic and diluted net income (loss) per share attributable to common stockholders is as follows:
|
|
Fiscal Year Ended July 31, |
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|||||||||
|
|
2023 |
|
|
2024 |
|
|
2025 |
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|||
|
|
(in thousands, except per share data) |
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|||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net (loss) income |
|
$ |
(254,560 |
) |
|
$ |
(124,775 |
) |
|
$ |
188,366 |
|
Add: Interest expense related to convertible senior |
|
|
— |
|
|
|
— |
|
|
|
3,173 |
|
Diluted net (loss) income |
|
$ |
(254,560 |
) |
|
$ |
(124,775 |
) |
|
$ |
191,539 |
|
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted average shares, basic |
|
|
233,247 |
|
|
|
244,743 |
|
|
|
267,479 |
|
Add: Dilutive effect of common stock equivalents |
|
|
— |
|
|
|
— |
|
|
|
26,604 |
|
Weighted average shares, diluted |
|
|
233,247 |
|
|
|
244,743 |
|
|
|
294,083 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net (loss) income per share attributable to Class A |
|
$ |
(1.09 |
) |
|
$ |
(0.51 |
) |
|
$ |
0.70 |
|
Net (loss) income per share attributable to Class A |
|
$ |
(1.09 |
) |
|
$ |
(0.51 |
) |
|
$ |
0.65 |
|
The following shares of common stock were excluded from the computation of diluted net income (loss) per share for the periods presented, as their effect would have been antidilutive:
|
|
Fiscal Year Ended |
|
|||||||||
|
|
2023 |
|
|
2024 |
|
|
2025 |
|
|||
|
|
(in thousands) |
|
|||||||||
Outstanding stock options, RSUs and PSUs |
|
|
25,820 |
|
|
|
22,433 |
|
|
|
839 |
|
Employee stock purchase plan |
|
|
1,122 |
|
|
|
1,148 |
|
|
|
64 |
|
Common stock issuable upon the conversion of convertible notes |
|
|
38,700 |
|
|
|
39,423 |
|
|
|
— |
|
Total |
|
|
65,642 |
|
|
|
63,004 |
|
|
|
903 |
|
Shares that will be issued in connection with our stock awards and shares that will be purchased under the employee stock purchase plan are generally automatically converted into shares of our Class A common stock. Common stock issuable upon the conversion of convertible notes represents the antidilutive impact of the 2026 Notes and 2027 Notes under the if-converted method.
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.