Spero Therapeutics, Inc. Earnings Per Share Disclosure
15. Net Income (Loss) per Share
Basic and diluted net income (loss) per share attributable to common stockholders of the Company was calculated as follows (in thousands, except share and per share amounts):
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|
Year Ended December 31, |
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|||||
|
|
2024 |
|
|
2023 |
|
||
Numerator: |
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|
|
|
|
|
||
Net income (loss) |
|
$ |
(68,566 |
) |
|
$ |
22,806 |
|
Denominator: |
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|
|
|
|
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||
Basic weighted average common shares outstanding |
|
|
54,037,917 |
|
|
|
52,703,467 |
|
Effect of dilutive securities |
|
|
— |
|
|
|
285,563 |
|
Diluted weighted-average common shares outstanding |
|
|
54,037,917 |
|
|
|
52,989,030 |
|
|
|
|
|
|
|
|
||
Net income (loss) per share, basic |
|
$ |
(1.27 |
) |
|
$ |
0.43 |
|
Net income (loss) per share, diluted |
|
$ |
(1.27 |
) |
|
$ |
0.43 |
|
The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net income (loss) per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect:
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Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Options to purchase common stock |
|
|
2,814,850 |
|
|
|
3,485,373 |
|
Unvested RSUs and PSUs |
|
|
6,038,732 |
|
|
|
3,462,595 |
|
Total |
|
|
8,853,582 |
|
|
|
6,947,968 |
|
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.