SharkNinja, Inc. Earnings Per Share Disclosure
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands, except share and per share data) | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 701,374 | $ | 438,705 | $ | 167,078 | |||||||||||
| Denominator: | |||||||||||||||||
Weighted-average shares used in computing net income per share, basic | 140,984,108 | 139,935,525 | 139,025,657 | ||||||||||||||
Dilutive effect of RSUs | 1,105,658 | 1,148,328 | 394,597 | ||||||||||||||
Weighted-average shares used in computing net income per share, diluted | 142,089,766 | 141,083,853 | 139,420,254 | ||||||||||||||
| Net income per share, basic | $ | 4.97 | $ | 3.14 | $ | 1.20 | |||||||||||
| Net income per share, diluted | $ | 4.94 | $ | 3.11 | $ | 1.20 | |||||||||||
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.