Sarepta Therapeutics, Inc. Earnings Per Share Disclosure
20. (LOSS) EARNINGS PER SHARE
Basic (loss) earnings per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding. Diluted earnings per share is computed based on the treasury stock method for stock awards and the if-converted method for convertible debt by dividing net income by the weighted-average number of shares of common stock and dilutive common stock equivalents outstanding. Given that the Company recorded a net loss for the years ended December 31, 2025 and 2023, there is no difference between basic and diluted net loss per share since the effect of common stock equivalents would be anti-dilutive and are, therefore, excluded from the diluted net loss per share calculation.
The following table sets forth the computation of basic and diluted (loss) earnings per common share:
|
|
For the Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(in thousands, except per share amounts) |
|
|||||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net (loss) income – basic |
|
$ |
(713,410 |
) |
|
$ |
235,239 |
|
|
$ |
(535,977 |
) |
Add: interest expense, net of tax, on the Company's convertible debt |
|
|
— |
|
|
|
17,000 |
|
|
|
— |
|
Net (loss) income – diluted |
|
$ |
(713,410 |
) |
|
$ |
252,239 |
|
|
$ |
(535,977 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Weighted-average common shares outstanding, basic |
|
|
100,120 |
|
|
|
95,075 |
|
|
|
92,398 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|||
Common stock issuable under the Company's equity incentive plans |
|
|
— |
|
|
|
3,513 |
|
|
|
— |
|
Common stock issuable under the Company's convertible debt |
|
|
— |
|
|
|
9,287 |
|
|
|
— |
|
Weighted-average common shares outstanding, diluted |
|
|
100,120 |
|
|
|
107,875 |
|
|
|
92,398 |
|
(Loss) earnings per common share, basic |
|
$ |
(7.13 |
) |
|
$ |
2.47 |
|
|
$ |
(5.80 |
) |
(Loss) earnings per common share, diluted |
|
$ |
(7.13 |
) |
|
$ |
2.34 |
|
|
$ |
(5.80 |
) |
The following table summarizes potential shares of common stock that were excluded from the computation of diluted earnings per share as they were anti-dilutive:
|
|
For the Year Ended December 31, |
|||||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|
|||
|
|
(in thousands) |
|||||||||||
Common stock issuable under the Company's equity incentive plans |
|
|
12,658 |
|
(1) |
|
2,520 |
|
(2) |
|
11,956 |
|
(3) |
Common stock issuable under the Company's convertible debt |
|
|
16,007 |
|
|
|
— |
|
|
|
9,542 |
|
|
Total number of potentially issuable common stock |
|
|
28,665 |
|
|
|
2,520 |
|
|
|
21,498 |
|
|
(1) As of December 31, 2025, the anti-dilutive common stock issuable under the Company's equity incentive plans includes 0.2 million shares and awards that are dilutive but have performance conditions that were not met as of the end of the period. These were anti-dilutive as the Company was in a net loss position at the end of the period.
(2) As of December 31, 2024, the anti-dilutive common stock issuable under the Company's equity incentive plans excludes 1.2 million shares that are dilutive but have performance or market conditions that were not met as of the end of the period.
(3) As of December 31, 2023, the anti-dilutive common stock issuable under the Company's equity incentive plans includes 1.1 million shares that have performance or market conditions that were not met. These were anti-dilutive as the Company was in a net loss position at the end of the period.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Mar 1, 2018 | |
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.