SkinHealth Systems Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| (in thousands, except share and per share amounts) | 2024 | 2023 | 2022 | ||||||||||||||
| Net (loss) income available to common stockholders - basic | $ | (29,098) | $ | (100,116) | $ | 44,224 | |||||||||||
Adjustments related to the Notes (1) | (22,671) | — | — | ||||||||||||||
Income on Private Placement Warrants | — | — | (78,343) | ||||||||||||||
| Net loss available to common stockholders - diluted | $ | (51,769) | $ | (100,116) | $ | (34,119) | |||||||||||
Weighted average common stock outstanding - basic | 123,827,372 | 131,680,605 | 147,554,090 | ||||||||||||||
| Effect of dilutive shares: | |||||||||||||||||
| Notes | 18,665,203 | — | — | ||||||||||||||
Private Placement Warrants | — | — | 952,222 | ||||||||||||||
| Weighted average common stock outstanding - diluted | 142,492,575 | 131,680,605 | 148,506,312 | ||||||||||||||
| Basic net (loss) income per share: | $ | (0.23) | $ | (0.76) | $ | 0.30 | |||||||||||
| Dilutive net loss per share: | $ | (0.36) | $ | (0.76) | $ | (0.23) | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2024 | 2023 | 2022 | |||||||||||||||
| Notes | — | 23,614,425 | 23,614,425 | ||||||||||||||
RSUs | 7,254,391 | 5,242,680 | 2,580,152 | ||||||||||||||
| Stock Options | 3,483,070 | 3,732,420 | 5,601,770 | ||||||||||||||
PSUs | 1,237,822 | 1,306,558 | 2,500,126 | ||||||||||||||
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.