Paymentus Holdings, Inc. Earnings Per Share Disclosure
13. Net Income Per Share Attributable to Common Stock
Basic net income per share attributable to common stock is computed by dividing the net income for the period attributable to common stockholders by the weighted-average number of common shares outstanding during the period.
Diluted net income per share attributable to common stock is computed by giving effect to all potentially dilutive common stock equivalents to the extent they are dilutive. The dilutive effect of outstanding options, RSUs and warrants is reflected in diluted net income per share attributable to common stock by application of the treasury stock method. The calculation of diluted net income per share attributable to common stock excludes all anti-dilutive common shares.
The rights of the holders of Class A and Class B common stock are identical, except with respect to voting and conversion. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis to each class of common stock and the resulting basic and diluted net income per share attributable to common stockholders are, therefore, the same for both Class A and Class B common stock on both an individual and combined basis.
The following table sets forth the computation of basic and diluted net income per share attributable to common stock (in thousands except share and per share data):
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Year Ended December 31, |
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2025 |
|
2024 |
|
2023 |
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Numerator: |
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|
|
|
|
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Net income |
|
$ |
66,937 |
|
$ |
44,169 |
|
$ |
22,322 |
|
Denominator: |
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|
|
|
|
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Weighted-average shares of common stock — basic |
|
|
125,246,892 |
|
|
124,372,031 |
|
|
123,511,608 |
|
Dilutive effect of stock options |
|
|
2,549,332 |
|
|
2,323,355 |
|
|
1,262,918 |
|
Dilutive effect of RSUs |
|
|
976,879 |
|
|
850,024 |
|
|
271,754 |
|
Dilutive effect of warrants |
|
|
340,581 |
|
|
169,212 |
|
|
25,549 |
|
Weighted-average shares of common stock — diluted |
|
|
129,113,684 |
|
|
127,714,622 |
|
|
125,071,829 |
|
Net income per share |
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|
|
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Basic |
|
$ |
0.53 |
|
$ |
0.36 |
|
$ |
0.18 |
|
Diluted |
|
$ |
0.52 |
|
$ |
0.35 |
|
$ |
0.18 |
|
The following table summarizes weighted average securities that were excluded from the computation of diluted net income per share attributable to common stock as their inclusion would have been antidilutive for the respective year:
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Year Ended December 31, |
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|
|
2025 |
|
2024 |
|
2023 |
|
|||
RSUs |
|
|
5,686 |
|
|
171,101 |
|
|
1,055,467 |
|
Warrants |
|
|
— |
|
|
— |
|
|
417,132 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
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.