4. Net Income (Loss) per Share

Basic net income (loss) per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by using the weighted-average number of shares of common stock outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options, unvested restricted stock units, and shares issuable related to the ESPP using the treasury stock method.

The following table presents the calculation of basic and diluted net income (loss) per share:

 

 

 

Fiscal Year Ended June 30,

 

 

 

2025

 

 

2024

 

 

2023

 

 

 

(In thousands, except per share data)

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

4,707

 

 

$

(31,331

)

 

$

(68,866

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing
basic net income (loss) per share

 

 

56,477

 

 

 

54,917

 

 

 

53,799

 

Weighted average effect of dilutive securities

 

 

1,823

 

 

 

 

 

 

 

Weighted average shares of common stock used in computing diluted net income (loss) per share

 

 

58,300

 

 

 

54,917

 

 

 

53,799

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

Basic (1)

 

$

0.08

 

 

$

(0.57

)

 

$

(1.28

)

Diluted (1)

 

$

0.08

 

 

$

(0.57

)

 

$

(1.28

)

 

 

 

 

 

 

 

 

 

 

Securities excluded from weighted average shares of common stock used in computing diluted net income (loss) per share because the effect would have been anti-dilutive: (2)

 

 

426

 

 

 

4,453

 

 

 

4,247

 

 

(1)
Diluted net loss per share for fiscal 2024 and 2023 do not reflect any potential common stock relating to stock options, restricted stock units, or shares issuable related to the ESPP due to net loss incurred. The assumed issuance of any additional shares would be anti-dilutive.
(2)
These weighted shares relate to anti-dilutive stock options, restricted stock units, and shares issuable related to the ESPP as calculated using the treasury stock method and could be dilutive in the future.

Historical Timeline

Fiscal YearFiled
2025Aug 21, 2025Showing above
2024Aug 21, 2024
2023Aug 21, 2023
2022Aug 22, 2022

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.