Roivant Sciences Ltd.ROIV

Roivant Sciences Ltd. Earnings Per Share Disclosure

10-KFiled May 29, 20252 min read
Note 15—Net (Loss) Income per Common Share


Basic net (loss) income per common share is computed by dividing net (loss) income attributable to Roivant Sciences Ltd. by the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per common share is computed by dividing the net (loss) income attributable to Roivant Sciences Ltd. by the diluted weighted-average number of common shares outstanding during the period.


For periods of loss from continuing operations, diluted loss per share is calculated similar to basic loss per share as the effect of including all potentially dilutive common stock equivalents is anti-dilutive. For the years ended March  31, 2025 and 2023, all outstanding common stock equivalents have been excluded from the computation of diluted loss per share because their effect was anti-dilutive due to the loss from continuing operations.


As of March  31, 2025, 2024 and 2023, the following potentially dilutive common stock equivalents were excluded from the computation of diluted net (loss) income per common share:



   
March 31, 2025
    
March 31, 2024
    
March 31, 2023
  
Stock options and performance stock options
    
139,412,098
      
54,648,258
      
154,271,791
  
Restricted stock units and performance restricted stock units (non-vested)
    
50,992,414
      
5,422,465
      
20,700,788
  
March 2020 CVARs(1)
    
17,548,368
      
17,548,368
      
32,011,996
  
November 2021 CVARs (non-vested)
    
348,527
      
249,120
      
3,222,645
  
Restricted common stock (non-vested)
    
—
      
255,911
      
689,026
  
Earn-Out Shares (non-vested)
    
3,080,387
      
3,080,387
      
3,080,387
  
Private Placement Warrants
    
—
      
—
      
10,214,265
  
Public Warrants
    
—
      
—
      
20,475,875
  
Other stock based awards and instruments issued
    
4,731,198
      
3,924,305
      
6,122,842
  

(1)
Refer to Note 9, “Share-Based Compensation and Other Compensation Plans” for details regarding settlement of CVARs.

Historical Timeline

Fiscal YearFiled
2025May 29, 2025Showing above
2024May 30, 2024
2023Jun 28, 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.

Other Available Disclosures

Income TaxesRevenueFair ValueLeasesSegmentsDebtCommitmentsStock CompensationNew Standards