Skillsoft Corp. Earnings Per Share Disclosure
(21) Net Income (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed by dividing net income for the period by the weighted-average number of common shares outstanding during the period, plus the dilutive effect of outstanding restricted stock-based awards, stock options, and shares issuable under the employee stock purchase plan using the treasury stock method.
The following sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except for the number of shares and per share data):
| Twelve Months Ended January 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net income (loss) from continuing operations | $ | (121,908 | ) | $ | (348,603 | ) | $ | (790,066 | ) | |||
| Net income (loss) from discontinued operations | — | (682 | ) | 65,102 | ||||||||
| Net income (loss) | $ | (121,908 | ) | $ | (349,285 | ) | $ | (724,964 | ) | |||
| Weighted average common shares outstanding: | ||||||||||||
| Basic and diluted | 8,200,077 | 8,051,593 | 7,944,019 | |||||||||
| Net income (loss) per share: | ||||||||||||
| Basic and diluted - continuing operations | $ | (14.87 | ) | $ | (43.29 | ) | $ | (99.45 | ) | |||
| Basic and diluted - discontinued operations | — | (0.09 | ) | 8.19 | ||||||||
| Basic and diluted | $ | (14.87 | ) | $ | (43.38 | ) | $ | (91.26 | ) | |||
During the fiscal 2025, fiscal 2024 and fiscal 2023, the Company incurred net losses and, therefore, the effect of the Company’s potentially dilutive securities was included in the calculation of diluted loss per share as the effect would be anti-dilutive. The following contains share/unit totals with a potentially dilutive impact, which excludes the effect of the treasury stock method (in thousands):
| Twelve Months Ended January 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Common stock underlying warrants | 3,098 | 3,098 | 3,098 | |||||||||
| RSUs | 1,218 | 919 | 721 | |||||||||
| Stock options | 60 | 89 | 116 | |||||||||
| Total | 4,376 | 4,106 | 3,935 | |||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 14, 2025 | Showing above |
| 2024 | Apr 15, 2024 | |
| 2023 | Apr 14, 2023 | |
| 2022 | Apr 18, 2022 | |
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.