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| 3. | Earnings (Loss) per Share |
Basic and diluted earnings (loss) per share are calculated as follows:
| | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| (in thousands, except share and per share data) | | 2025 | | 2024 | | |
| Net income (loss) | | $ | 25,246 | | | $ | (78,682) | | | |
| | | | | | |
| | | | | | |
| Net income (loss) attributable to common stockholders | | $ | 25,246 | | | $ | (78,682) | | | |
| | | | | | |
Basic weighted-average common shares outstanding (1) | | 46,418,934 | | | 40,356,025 | | | |
| Weighted average effect of dilutive securities: | | | | | | |
| Stock options | | — | | | — | | | |
| Restricted stock units | | 1,439,697 | | | — | | | |
| | | | | | |
| Diluted weighted-average common shares outstanding | | 47,858,631 | | | 40,356,025 | | | |
| | | | | | |
| Earnings (loss) per share: | | | | | | |
| Basic | | $ | 0.54 | | | $ | (1.95) | | | |
| Diluted | | $ | 0.53 | | | $ | (1.95) | | | |
(1) The fair value of the outstanding and exercisable warrants issued with an exercise price of $0.01 are included in the Basic weighted-average common shares outstanding. See Note 10, Stockholders' Equity.
The following common share equivalent securities have been excluded from the calculation of diluted weighted-average common shares outstanding because the effect is anti-dilutive for the periods presented:
| | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | |
| Stock options | | 1,638,792 | | | 2,192,211 | | | |
| Restricted stock units | | 1,457,851 | | | 4,360,532 | | | |
| | | | | | |
| | | | | | |
| Total anti-dilutive common share equivalents | | 3,096,643 | | | 6,552,743 | | | |
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.