RAMBUS INC Earnings Per Share Disclosure
5. Earnings Per Share
The following table sets forth the computation of basic and diluted net income per share:
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Years Ended December 31, |
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(In thousands, except per share amounts) |
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2025 |
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2024 |
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2023 |
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Net income per share: |
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Numerator: |
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Net income |
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$ |
230,455 |
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$ |
179,821 |
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$ |
333,904 |
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Denominator: |
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Weighted-average common shares outstanding - basic |
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107,548 |
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107,438 |
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108,183 |
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Effect of potentially dilutive common shares |
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1,687 |
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1,603 |
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2,706 |
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Weighted-average common shares outstanding - diluted |
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109,235 |
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109,041 |
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110,889 |
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Basic net income per share |
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$ |
2.14 |
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$ |
1.67 |
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$ |
3.09 |
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Diluted net income per share |
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$ |
2.11 |
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$ |
1.65 |
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$ |
3.01 |
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In the first quarter of 2023, the Company settled the conversion of the remaining $10.4 million aggregate principal amount of its 1.375% Convertible Senior Notes due 2023 (“the 2023 Notes”). Accordingly, the Company delivered approximately 0.3 million shares of its common stock as settlement related to the in-the-money conversion feature of the 2023 Notes and received an equal amount of shares due to the settlement of the convertible senior note hedges. The Company included dilutive instruments exercised during the period in the denominator of diluted earnings per share for the period prior to exercise, and thereafter, the Company included the actual shares issued in the denominator for both basic and diluted earnings per share. Refer to Note 12, “Convertible Notes,” for additional information.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
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.