Earnings Per Share
Diluted earnings per share is computed by giving effect to all potentially dilutive stock awards that are outstanding. The computation of diluted earnings per share excludes the effect of the potential exercise of stock-based awards when the effect of the potential exercise would be anti-dilutive.
The computations of basic and diluted earnings per share are as follows:
Years Ended December 31,
(Dollars in millions, shares in thousands, except per share amounts)202520242023
Net income (loss)$(100)$(290)$
Basic weighted-average common shares (1)
168,462 133,412 116,871 
Dilutive effect of stock-based awards— — 2,585 
Diluted weighted-average common shares (1)
168,462 133,412 119,456 
Basic earnings (loss) per share$(0.59)$(2.17)$0.03 
Diluted earnings (loss) per share$(0.59)$(2.17)$0.03 
Antidilutive shares excluded from diluted weighted-average common shares
1,980 2,783 396 
(1)     Of the 6,259,471 pre-funded warrants issued in the private placement, warrants to purchase 2,558,753 shares of common stock did not require stockholder approval; therefore, basic and diluted weighted-average common shares include 2,558,753 pre-funded warrants from their August 13, 2024 issuance date. Stockholder approval for the remaining warrants was obtained on December 5, 2024; therefore, basic and diluted weighted-average common shares include 3,700,718 pre-funded warrants from the December 5, 2024 approval date. For all pre-funded warrants, the exercise price of $0.01 per share is not substantive.

Historical Timeline

Fiscal YearFiled
2025Feb 9, 2026Showing above
2024Feb 27, 2025
2023Feb 13, 2024
2022Feb 24, 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.