Earnings per share
Basic earnings per share excludes dilution and is computed by dividing net income available to Nextpower Inc. common stockholders by the weighted-average number of shares of Class A common stock outstanding during the applicable periods.
Diluted earnings per share reflects the potential dilution from stock-based compensation awards. The potential dilution from awards was computed using the treasury stock method based on the average fair market value of the Company’s common stock for the period. Additionally, the potential dilution impact of Class B common stock convertible into Class A common stock was also considered in the calculation.
The computation of earnings per share and weighted average shares outstanding of the Company’s common stock for the period is presented below:
Fiscal year ended March 31, 2026
Fiscal year ended March 31, 2025
Fiscal year ended March 31, 2024
IncomeWeighted average shares outstandingPer shareIncomeWeighted average shares outstandingPer shareIncomeWeighted average shares outstandingPer share
NumeratorDenominatorAmountNumeratorDenominatorAmountNumeratorDenominatorAmount
(In thousands, except share and per share amounts)
Basic EPS
Net income attributable to Nextpower Inc. common stockholders$585,883 147,976,256 $3.96 $509,168 143,539,344 $3.55 $306,241 77,067,639 $3.97 
Effect of Dilutive Impact
Common stock equivalents from Options awards (1)2,029,255 1,198,258 1,089,554 
Common stock equivalents from RSUs (2)1,489,464 1,349,145 1,268,923 
Common stock equivalents from PSUs (3)1,215,058 1,287,558 558,733 
Income attributable to non-controlling interests and common stock equivalent from Class B common stock$— — $8,078 1,901,645 $189,974 67,299,481 
Diluted EPS
Net income$585,883 152,710,033 $3.84 $517,246 149,275,950 $3.47 $496,215 147,284,330 $3.37 
(1)During the fiscal years ended March 31, 2026, 2025 and 2024, no Options awards and approximately 0.7 million and 0.5 million Options awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents.
(2)During the fiscal years ended March 31, 2026, 2025 and 2024, an immaterial amount of RSU awards, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents.
(3)During the fiscal years ended March 31, 2026, 2025 and 2024, no PSU awards and an immaterial amount of PSU awards and no PSU awards, respectively, were excluded from the computation of diluted earnings per share due to their anti-dilutive impact on the weighted-average ordinary share equivalents.

Historical Timeline

Fiscal YearFiled
2026May 19, 2026Showing above
2025May 22, 2025
2024May 28, 2024
2023Jun 9, 2023

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.