Rallybio Corp Earnings Per Share Disclosure
| FOR THE YEAR ENDED DECEMBER 31, | |||||||||||
| (in thousands except share and per share amounts) | 2024 | 2023 | |||||||||
| Net loss | $ | (57,775) | $ | (74,564) | |||||||
| Weighted-average number of common shares outstanding, basic and diluted | 43,544,824 | 40,447,388 | |||||||||
| Net loss per common share, basic and diluted | $ | (1.33) | $ | (1.84) | |||||||
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.