TheRealReal, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator | |||||||||||||||||
Net loss attributable to common stockholders, basic | $ | (41,799) | $ | (134,202) | $ | (168,472) | |||||||||||
| Effect of gain on debt extinguishment | (40,785) | — | — | ||||||||||||||
| Effect of coupon interest and amortization expense related to the 2025 Exchanged Notes | 740 | — | — | ||||||||||||||
| Net loss attributable to common stockholders, diluted | $ | (81,844) | $ | (134,202) | $ | (168,472) | |||||||||||
| Denominator | |||||||||||||||||
Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, basic | 114,871,414 | 107,878,366 | 101,806,000 | ||||||||||||||
Effect of dilutive 2025 Exchanged Notes | 1,640,851 | — | — | ||||||||||||||
| Weighted-average common shares outstanding used to calculate net loss per share attributable to common stockholders, diluted | 116,512,265 | 107,878,366 | 101,806,000 | ||||||||||||||
Net loss per share attributable to common stockholders: | |||||||||||||||||
Basic | $ | (0.36) | $ | (1.24) | $ | (1.65) | |||||||||||
Diluted | $ | (0.70) | $ | (1.24) | $ | (1.65) | |||||||||||
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Options to purchase common stock | 634,564 | 917,370 | 1,119,676 | ||||||||||||||
| Restricted stock units | 9,803,430 | 14,305,562 | 12,695,176 | ||||||||||||||
| Estimated shares issuable under the Employee Stock Purchase Plan | 68,879 | 248,523 | 367,074 | ||||||||||||||
Assumed conversion of anti-dilutive Convertible Senior Notes | 19,687,744 | 10,342,056 | 18,746,323 | ||||||||||||||
Warrants to purchase common stock | 7,894,737 | 7,894,737 | — | ||||||||||||||
Total | 38,089,354 | 33,708,248 | 32,928,249 | ||||||||||||||
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.