IMPINJ INC Earnings Per Share Disclosure
Note 15. Net Earnings (Loss) per Share
For the periods presented, the following table provides a reconciliation of the numerator and denominator used in computing basic and diluted net earnings (loss) per share (in thousands, except for per-share amounts):
|
Year Ended December 31, |
|
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|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|||
Net income (loss) |
$ |
(10,847 |
) |
|
$ |
40,838 |
|
|
$ |
(43,366 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding, basic |
|
29,283 |
|
|
|
27,953 |
|
|
|
26,752 |
|
Dilutive effect of: |
|
|
|
|
|
|
|
|
|||
Stock plans |
|
— |
|
|
|
1,518 |
|
|
|
— |
|
Convertible notes |
|
— |
|
|
|
— |
|
|
|
— |
|
Weighted average common shares outstanding, diluted |
|
29,283 |
|
|
|
29,471 |
|
|
|
26,752 |
|
|
|
|
|
|
|
|
|
|
|||
Net earnings (loss) per share — basic |
$ |
(0.37 |
) |
|
$ |
1.46 |
|
|
$ |
(1.62 |
) |
Net earnings (loss) per share — diluted |
$ |
(0.37 |
) |
|
$ |
1.39 |
|
|
$ |
(1.62 |
) |
Basic net earnings (loss) per share is calculated using our net income and our weighted average outstanding common shares.
Diluted net earnings (loss) per share is calculated using our net income (loss) attributable to common stockholders with interest charges applicable to our convertible debt added back under the if converted method, if dilutive, and our weighted average outstanding common shares including the dilutive effect of stock awards and employee stock purchase plan shares as determined under the treasury stock method and of our convertible notes using the if converted method, if dilutive. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards and the potential share settlement impact related to our convertible notes from the diluted loss per share calculation as their inclusion would have an antidilutive effect.
The following table presents the outstanding shares of our common stock equivalents excluded from the computation of diluted net earnings (loss) per share as of the dates presented because their effect would have been antidilutive (in thousands):
|
Year Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Stock options |
|
438 |
|
|
|
— |
|
|
|
1,466 |
|
RSUs, MSUs and PSUs |
|
990 |
|
|
|
349 |
|
|
|
1,252 |
|
Employee stock purchase plan shares |
|
— |
|
|
|
— |
|
|
|
51 |
|
2021 Notes |
|
878 |
|
|
|
2,589 |
|
|
|
2,589 |
|
2025 Notes |
|
711 |
|
|
|
— |
|
|
|
— |
|
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.