Silence Therapeutics plc Earnings Per Share Disclosure
8. Loss per share (basic and diluted)
Basic net loss per share is computed by dividing net loss (the numerator) by the weighted average shares outstanding for the period (the denominator). Diluted net loss per share is computed by dividing net income by the weighted average shares outstanding during the period adjusted for the dilutive effects of the exercise of the stock options. In periods when losses from continuing operations are reported, the weighted-average shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. The computation of net loss per share for the years ended December 31, 2025 and 2024, respectively was as follows:
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|
Year ended December 31, |
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|
|
2025 |
|
|
2024 |
|
||
|
|
$000s |
|
|
$000s |
|
||
Net loss |
|
|
(88,612 |
) |
|
|
(45,309 |
) |
Weighted-average shares outstanding (basic and diluted) |
|
|
141,694,702 |
|
|
|
138,752,224 |
|
Net loss per share (basic and diluted) |
|
$ |
(0.63 |
) |
|
$ |
(0.33 |
) |
The following outstanding potentially dilutive securities were excluded from the calculation of diluted net loss per share because their impact would have been anti-dilutive for the period presented.
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|
Year ended December 31, |
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|
2025 |
|
|
2024 |
|
||
Potentially Dilutive Securities |
|
|
|
|
|
|
||
Stock options |
|
|
20,884,098 |
|
|
|
17,455,390 |
|
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.