Purple Innovation, Inc. Earnings Per Share Disclosure
16. Net Loss Per Common Share
The following table sets forth the calculation of basic and diluted weighted average shares outstanding and loss per share for the periods presented (in thousands, except per share amounts):
| Years Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Numerator: | ||||||||||||
| Net loss attributable to Purple Innovation, Inc. – basic | $ | (51,414 | ) | $ | (97,897 | ) | $ | (120,757 | ) | |||
| Less: Net loss attributable to noncontrolling interest | (97 | ) | (201 | ) | (458 | ) | ||||||
| Net loss attributable to Purple Innovation, Inc. – diluted | $ | (51,511 | ) | $ | (98,098 | ) | $ | (121,215 | ) | |||
| Denominator | ||||||||||||
| Weighted average shares – basic | 108,081 | 107,139 | 103,602 | |||||||||
| Add: Dilutive effect of Class B shares | 164 | 185 | 334 | |||||||||
| Weighted average shares – diluted | 108,245 | 107,324 | 103,936 | |||||||||
| Net loss per common share: | ||||||||||||
| Basic | $ | (0.48 | ) | $ | (0.91 | ) | $ | (1.17 | ) | |||
| Diluted | $ | (0.48 | ) | $ | (0.91 | ) | $ | (1.17 | ) | |||
The Company excludes from the diluted net loss per common share computation potentially dilutive securities related to warrants, equity awards and convertible shares of Class B Stock when their exercise or performance vesting price is greater than the average market price of the Company’s Common Stock or they are otherwise anti-dilutive. Potentially dilutive securities that have been excluded from the calculation of diluted net loss per common share are as follows (in thousands):
| Years Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Warrants | 40,787 | 20,000 | ||||||||||
| Sponsor warrants | 928 | |||||||||||
| Restricted stock units | 3,141 | 3,808 | 3,057 | |||||||||
| Stock options | 500 | 529 | 863 | |||||||||
Class B Stock | ||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Mar 22, 2023 | |
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.