Shutterstock, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 45,496 | $ | 35,932 | $ | 110,269 | |||||||||||
| Shares used to compute basic net income per share | 35,290 | 35,330 | 35,878 | ||||||||||||||
| Dilutive potential common shares: | |||||||||||||||||
| Stock options and employee stock purchase plan shares | — | 40 | 100 | ||||||||||||||
| Unvested restricted stock awards | 978 | 288 | 264 | ||||||||||||||
| Shares used to compute diluted net income per share | 36,268 | 35,658 | 36,242 | ||||||||||||||
| Basic net income per share | $ | 1.29 | $ | 1.02 | $ | 3.07 | |||||||||||
| Diluted net income per share | $ | 1.25 | $ | 1.01 | $ | 3.04 | |||||||||||
| Potentially dilutive shares included in the calculation | 2,953 | 1,157 | 1,034 | ||||||||||||||
| Anti-dilutive shares excluded from the calculation | 1,539 | 1,551 | 944 | ||||||||||||||
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.