ONE Group Hospitality, Inc. Earnings Per Share Disclosure
Note 11 – Earnings per share
Basic earnings per share is computed using the weighted average number of common shares outstanding during the period and income available to common stockholders. Diluted earnings per share is computed using the weighted average number of common shares outstanding during the period plus the dilutive effect of all potential shares of common stock including common stock issuable pursuant to stock options, warrants, and restricted stock units. The two-class method for computing earnings per share will be utilized when applicable.
For the years ended December 31, 2024 and 2023, earnings per share was calculated as follows (in thousands, except earnings per share and related share data):
Year ended December 31, | ||||||
| 2024 |
| 2023 | |||
Net (loss) income attributable to The ONE Group Hospitality, Inc. | $ | (15,824) | $ | 4,718 | ||
Series A Preferred Stock paid-in-kind dividend and accretion | (19,142) | — | ||||
Net (loss) income attributable to common stockholders | (34,966) | 4,718 | ||||
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Basic weighted average shares outstanding |
| 31,154,765 |
| 31,556,437 | ||
Dilutive effect of stock options, warrants and restricted share units |
| - |
| 731,427 | ||
Diluted weighted average shares outstanding |
| 31,154,765 |
| 32,287,864 | ||
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|
|
| |||
Net income available to common stockholders per share - Basic | $ | (1.12) | $ | 0.15 | ||
Net income available to common stockholders per share - Diluted | $ | (1.12) | $ | 0.15 | ||
For the years ended December 31, 2024 and 2023, , restricted share units totaling 2.5 million and 0.5 million, respectively, were determined to be anti-dilutive and were therefore excluded from the calculation of diluted earnings per share.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 10, 2025 | Showing above |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 19, 2021 | |
| 2019 | Mar 26, 2020 | |
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.