Rekor Systems, Inc. Earnings Per Share Disclosure
NOTE 15 – LOSS PER SHARE
The following table provides information relating to the calculation of loss per common share (dollars in thousands, except per share data):
| Year ended December 31, | ||||||||
| 2025 | 2024 | |||||||
| Basic and diluted loss per share | ||||||||
| Net loss applicable to common shareholders | $ | (31,460 | ) | $ | (61,410 | ) | ||
| Weighted average common shares outstanding - basic and diluted | 119,667,774 | 86,717,724 | ||||||
| Basic and diluted loss per share | $ | (0.26 | ) | $ | (0.71 | ) | ||
| Common stock equivalents excluded due to anti-dilutive effect | 13,979,702 | 11,258,721 | ||||||
As the Company had a net loss for the year ended December 31, 2025, the following 13,979,702 potentially dilutive securities were excluded from diluted loss per share: 12,902,528 for outstanding warrants, 423,034 related to outstanding options and 654,140 related to outstanding RSUs.
As the Company had a net loss for the year ended December 31, 2024, the following 11,258,721 potentially dilutive securities were excluded from diluted loss per share: 4,331,100 for outstanding warrants, 486,866 related to outstanding options, 664,329 related to the ATD Holdback Shares and 5,776,426 related to outstanding RSUs.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 31, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 29, 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.