Star Equity Holdings, Inc.STRR

Star Equity Holdings, Inc. Earnings Per Share Disclosure

10-KFiled Mar 14, 20251 min read
EARNINGS (LOSS) PER SHARE
A reconciliation of the numerators and denominators of the basic and diluted (loss) earnings per share calculations were as follows:
 For The Year Ended December 31,
 20242023
(Loss) earnings per share (“EPS”):  
Basic$(1.59)$0.72 
Diluted$(1.59)$0.70 
EPS numerator - basic and diluted: 
Net (loss) income$(4,770)$2,198 
EPS denominator (in thousands): 
Weighted average common stock outstanding - basic3,000 3,064 
Common stock equivalents: stock options and restricted stock units— 
(a)
76 
Weighted average number of common stock outstanding - diluted
3,000 3,140 
(a)    The diluted weighted average number of shares of common stock outstanding did not differ from the basic weighted average number of shares of common stock outstanding because the effects of any potential common stock equivalents (see Note 6 to the Consolidated Financial Statements for further details on unvested restricted stock units) were anti-dilutive and therefore not included in the calculation of the denominator of dilutive earnings per share.

The weighted average number of shares outstanding used in the computation of diluted net income per share for the years ended December 31, 2024 and 2023 did not include the effect of the following potentially outstanding shares of common stock because the effect would have been anti-dilutive:
 For The Year Ended December 31,
 20242023
Unvested restricted stock units— 247 
Total— 247 

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.

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