OLAPLEX HOLDINGS, INC. Earnings Per Share Disclosure
| Year Ended | ||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||
| Numerator: | ||||||||||||||||||||
| Net income | $ | 19,522 | $ | 61,587 | $ | 244,072 | ||||||||||||||
| Denominator: | ||||||||||||||||||||
Weighted average common shares outstanding – basic | 661,980,612 | 654,592,923 | 649,092,846 | |||||||||||||||||
| Dilutive common equivalent shares from equity options and awards | 3,417,043 | 22,985,322 | 41,913,000 | |||||||||||||||||
Weighted average common shares outstanding – diluted | 665,397,655 | 677,578,245 | 691,005,846 | |||||||||||||||||
| Net income per share: | ||||||||||||||||||||
| Basic | $ | 0.03 | $ | 0.09 | $ | 0.38 | ||||||||||||||
| Diluted | $ | 0.03 | $ | 0.09 | $ | 0.35 | ||||||||||||||
| Year Ended | ||||||||||||||||||||
| December 31, 2024 | December 31, 2023 | December 31, 2022 | ||||||||||||||||||
Stock options | 7,217,519 | 4,372,562 | 1,194,967 | |||||||||||||||||
RSUs | 4,493,242 | 66,356 | — | |||||||||||||||||
SARs | 118,800 | 279,723 | 142,528 | |||||||||||||||||
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.