PETMED EXPRESS INCPETS

PETMED EXPRESS INC Earnings Per Share Disclosure

10-KFiled Oct 14, 20252 min read
Net (Loss) Income Per Share
In accordance with the provisions of ASC Topic 260 (“Earnings Per Share”) basic net (loss) income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per common share includes the dilutive effect of potential restricted stock and the effects of the potential conversion of preferred shares, calculated using
the treasury stock method. Unvested restricted stock, and convertible preferred shares issued by the Company represent the only dilutive effect reflected in diluted weighted average shares outstanding.
The following is a reconciliation of the numerators and denominators of the basic and diluted net (loss) income per share computations for the periods presented (in thousands, except for per share amounts):
Year Ended March 31,
202520242023
Net (loss) income (numerator):
Net (loss) income
$(6,271)$(7,464)$5,140 
Shares (denominator)
Weighted average number of common shares outstanding used in basic computation20,596,02220,395,95920,274,786
Common shares issuable upon the vesting of restricted stock——54,091
Common shares issuable upon conversion of preferred shares——10,125
Shares used in diluted computation20,596,02220,395,95920,339,002
Net (loss) income per common share:
Basic$(0.30)$(0.37)$0.25 
Diluted$(0.30)$(0.37)$0.25 
At March 31, 2025, 2024, and 2023, 1,027,909, 827,863, and 745,854 shares of common restricted stock, respectively, were excluded from the computations of diluted net income per common share, as their inclusion would have had an anti-dilutive effect on diluted (net loss)/net income per common share.

Historical Timeline

Fiscal YearFiled
2025Oct 14, 2025Showing above
2024Jun 14, 2024

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.

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