Offerpad Solutions Inc. Earnings Per Share Disclosure
Note 12. Earnings Per Share
Basic earnings per share is calculated based on the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated based on the weighted average number of common shares plus the incremental effect of dilutive potential common shares outstanding during the period. In periods when losses are reported, the weighted average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive.
The components of basic and diluted earnings per share are as follows:
|
|
Year Ended December 31, |
|
|||||||||
(in thousands, except per share data) |
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net loss |
|
$ |
(46,384 |
) |
|
$ |
(62,159 |
) |
|
$ |
(117,218 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding, basic |
|
|
30,987 |
|
|
|
27,410 |
|
|
|
26,385 |
|
Dilutive effect of stock options (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of restricted stock units (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of 2025 Warrants (1) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Weighted average common shares outstanding, diluted |
|
|
30,987 |
|
|
|
27,410 |
|
|
|
26,385 |
|
Net loss per share, basic |
|
$ |
(1.50 |
) |
|
$ |
(2.27 |
) |
|
$ |
(4.44 |
) |
Net loss per share, diluted |
|
$ |
(1.50 |
) |
|
$ |
(2.27 |
) |
|
$ |
(4.44 |
) |
Anti-dilutive securities excluded from diluted loss per share: |
|
|
|
|
|
|
|
|
|
|||
Anti-dilutive stock options (1) |
|
|
736 |
|
|
|
869 |
|
|
|
816 |
|
Anti-dilutive restricted stock units (1) |
|
|
1,401 |
|
|
|
183 |
|
|
|
147 |
|
Anti-dilutive 2025 Warrants (1) |
|
|
1,429 |
|
|
|
— |
|
|
|
— |
|
Anti-dilutive warrants |
|
|
1,452 |
|
|
|
1,452 |
|
|
|
1,452 |
|
Anti-dilutive performance-based restricted stock units |
|
|
18 |
|
|
|
116 |
|
|
|
123 |
|
(1) Due to the net loss during each of the years ended December 31, 2025, 2024, and 2023, no dilutive securities were included in the calculation of diluted loss per share because they would have been anti-dilutive.
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.