(LOSS) EARNINGS PER SHARE
Basic (loss) earnings per share represents income available to common or ordinary stockholders divided by the weighted average number of Common Stock or Ordinary Shares outstanding during the reported period. Diluted (loss) earnings per share is based upon the weighted-average number of shares outstanding during the period plus additional weighted-average potentially dilutive share equivalents during the period when the effect is dilutive.
Basic and diluted weighted average shares outstanding and (loss) earnings per share were as follows (in thousands, except share and per share data):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Net (loss) income | $ | (206,366) | | | $ | (5,905) | | | $ | 67,486 | |
| | | | | |
| Weighted-average shares outstanding: | | | | | |
| Weighted average shares used in computing (loss) earnings per share, basic | 150,370,533 | | | 145,713,439 | | | 154,666,717 | |
| | | | | |
| | | | | |
| Founders advisory fees | — | | | — | | | 11,785,305 | |
| Weighted average shares used in computing (loss) earnings per share, diluted | 150,370,533 | | | 145,713,439 | | | 166,452,022 | |
| | | | | |
| Basic (loss) earnings per share | $ | (1.37) | | | $ | (0.04) | | | $ | 0.44 | |
| | | | | |
| Diluted (loss) earnings per share | $ | (1.37) | | | $ | (0.04) | | | $ | 0.41 | |
The number of anti-dilutive securities not included in the calculation of diluted (loss) earnings per share were as follows:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| PBNQSO | 4,603,398 | | | 3,047,072 | | | 245,004 | |
| Founders advisory fees | 13,357,957 | | | 9,428,244 | | | — | |
| Warrants | — | | | 6,395,268 | | | 8,460,860 | |
| Total | 17,961,355 | | | 18,870,584 | | | 8,705,864 | |
The Company expects to issue 13,387,002 shares of Common Stock in the first quarter of 2026. For additional information, refer to Note 13, “Related Parties.”
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.