Note 13. Net Loss Per Share
The following table presents the computation of basic and diluted net loss per share (in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net loss | $ | (107,150) | | | $ | (38,531) | | | $ | (28,354) | |
| Denominator: | | | | | |
| Weighted average common shares outstanding, basic and diluted | 42,639 | | 38,367 | | 37,594 |
| | | | | |
| Net loss per share, basic and diluted | $ | (2.51) | | | $ | (1.00) | | | $ | (0.75) | |
As the Company was in a net loss position for all periods, the following common share equivalents were excluded from the calculation of diluted net loss per share because their effect would be anti-dilutive (in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | 5,407 | | 3,561 | | 2,783 |
| Common stock and RSUs | 1,954 | | 1,341 | | 1,513 |
| Estimated ESPP purchases | 36 | | 8 | | 23 |
| Total dilutive shares | 7,397 | | 4,910 | | 4,319 |
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.