Earnings (Loss) Per Share
The following table sets forth the computation of basic and diluted loss per share (in thousands, except per share data):
Year Ended
January 3,
2026
December 28,
2024
December 30,
2023
Net loss$(64,907)$(191,010)$(34,516)
Shares used in computing basic loss per share32,721 32,191 31,804 
Effect of dilutive securities:
Stock-based awards and convertible debt— — — 
Shares used in computing diluted loss per share32,721 32,191 31,804 
Loss per share:
Basic$(1.98)$(5.93)$(1.09)
Diluted$(1.98)$(5.93)$(1.09)
Diluted shares for fiscal 2025 excluded 0.3 million shares, fiscal 2024 excluded 0.2 million shares, and fiscal 2023 excluded 0.9 million shares due to the Company’s net loss for the periods.
The Company irrevocably elected to settle the principal amount of its 0.625% convertible senior notes due 2025 (the “2025 Notes”) in cash and any excess value in shares in the event of a conversion. In June 2023, the Company paid $535.0 million in cash and issued 0.9 million shares of common stock in connection with the conversions and redemptions of the 2025 Notes. Securities that were anti-dilutive were insignificant and were excluded from the computation of diluted earnings per share in all periods presented.

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.