POWER INTEGRATIONS INC Earnings Per Share Disclosure
10. EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of the assumed vesting of outstanding restricted stock units, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method.
A summary of the earnings per share calculation is as follows:
Year Ended December 31, | |||||||||
(In thousands, except per share amounts) | | 2025 | | 2024 | | 2023 | |||
Basic earnings per share: |
| |
| |
| | |||
Net income | $ | 22,093 | $ | 32,234 | $ | 55,735 | |||
Weighted-average common shares |
| 56,063 |
| 56,820 |
| 57,195 | |||
Basic earnings per share | $ | 0.39 | $ | 0.57 | $ | 0.97 | |||
Diluted earnings per share: (1) |
| |
| |
| | |||
Net income | $ | 22,093 | $ | 32,234 | $ | 55,735 | |||
Weighted-average common shares |
| 56,063 |
| 56,820 |
| 57,195 | |||
Effect of dilutive awards: |
| |
| |
| | |||
Employee stock plans |
| 261 |
| 310 |
| 427 | |||
Diluted weighted-average common shares |
| 56,324 |
| 57,130 |
| 57,622 | |||
Diluted earnings per share | $ | 0.39 | $ | 0.56 | $ | 0.97 | |||
| (1) | The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2025, 2024 and 2023 calculations as the shares were not contingently issuable as of the end of the respective periods. |
In the years ended December 31, 2025, 2024 and 2023, no outstanding stock awards were determined to be anti-dilutive and excluded from the computation of diluted earnings per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 5, 2021 | |
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.