Proto Labs IncPRLB

Proto Labs Inc Earnings Per Share Disclosure

10-KFiled Feb 20, 20261 min read
Net Income Per Common Share
Basic net income per share is computed based on the weighted average number of common shares outstanding. Diluted net income per share is computed based on the weighted average number of common shares outstanding, increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares the Company could have repurchased from the proceeds from issuance of the potentially dilutive shares. Potentially dilutive shares of common stock include stock options and other stock-based awards granted under stock-based compensation plans and shares committed to be purchased under the employee stock purchase plan. For the years ended December 31, 2025, 2024 and 2023 respectively, 285,731, 451,029 and 263,992 anti-dilutive options were excluded from the calculation of diluted weighted average shares outstanding.
The following table presents the calculation of net income per basic and diluted share attributable to common shareholders:
Year Ended December 31,
(in thousands, except share and per share amounts)202520242023
Net income$21,241 $16,593 $17,220 
   
Basic - weighted-average shares outstanding:23,922,70325,096,11726,186,533
Effect of dilutive securities:   
Employee stock options and other322,496116,06136,965 
Diluted - weighted-average shares outstanding:24,245,19925,212,17826,223,498
Net income per share attributable to common shareholders:   
Basic$0.89 $0.66 $0.66 
Diluted$0.88 $0.66 $0.66 

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.

Other Available Disclosures

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