CPI Card Group Inc. Earnings Per Share Disclosure
13. Earnings per Share
Basic and diluted earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of restricted stock have vested. For the years ended December 31, 2025 and 2024, potentially dilutive securities of 18,848 and 36,826, respectively, are excluded from the calculation of diluted earnings per share. The effect of these shares was anti-dilutive under the treasury stock method, as the assumed proceeds of the options and restricted stock per unit were above our average share price during the periods.
The following table sets forth the computation of basic and diluted earnings per share:
Year Ended December 31, | ||||||
| 2025 | 2024 | ||||
Numerator: | | | | |||
Net income | $ | 14,950 | $ | 19,521 | ||
Denominator: | ||||||
Basic weighted-average common shares outstanding |
| 11,327,232 |
| 11,152,648 | ||
Dilutive shares | 594,643 | 725,428 | ||||
Diluted weighted-average common shares outstanding | 11,921,875 | 11,878,076 | ||||
Basic earnings per share | $ | 1.32 | $ | 1.75 | ||
Diluted earnings per share | $ | 1.25 | $ | 1.64 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 4, 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.