Net Loss Per Share

The Company computes net loss per share of common stock, Series A Preferred Stock, and Series B Preferred Stock using the two-class method required for multiple classes of common stock and other participating securities.

The two-class method is an earnings (loss) allocation method under which earnings (loss) per share is calculated for each class of common stock. The Company has determined that the Series A Preferred Stock and Series B Preferred Stock do not have preferential rights when compared to the Company's common stock and therefore it must allocate losses to these other classes of common stock, as illustrated in the table below.

Basic and diluted net loss per share is computed by dividing the net loss by the weighted-average number of shares and pre-funded warrants outstanding during the period, without consideration of potential dilutive securities. The pre-funded warrants are included in the computation of basic net loss per share as the exercise price is negligible and they are fully vested and exercisable. For periods in which the Company generated a net loss, the Company does not include potential shares of common stock in diluted net loss per share when the impact of these items is anti-dilutive. The Company has generated a net loss for all periods presented, therefore diluted net loss per share is the same as basic net loss per share since the inclusion of potential shares of common stock would be anti-dilutive.

The following table sets forth the computation of basic and diluted net loss per share of common stock, Series A Preferred Stock, and Series B Preferred Stock (in thousands, except share and per share amounts):


	Year Ended December 31, 2025
	Series A Preferred Stock		Series B Preferred Stock		Common Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses	$	(27,344)	$	(1,317)	$	(126,541)
Denominator
Weighted-average shares outstanding	346,045		16,667		64,056,442


Net loss per share, basic and diluted	$	(79.02)	$	(79.02)	$	(1.98)

	Year Ended December 31, 2024
	Series A Preferred Stock		Series B Preferred Stock		Common Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses	$	(47,624)	$	(10,839)	$	(149,555)
Denominator
Weighted-average shares outstanding	374,387		85,208		46,940,206
Weighted-average pre-funded warrants outstanding	—		—		87,432
Number of shares used in per share computation	374,387		85,208		47,027,638
Net loss per share, basic and diluted	$	(127.21)	$	(127.21)	$	(3.18)

	Year Ended December 31, 2023
	Series A Preferred Stock		Series B Preferred Stock		Common Stock
Net loss per share, basic and diluted:
Numerator
Allocation of losses	$	(239,158)	$	(4,749)	$	(94,883)
Denominator
Weighted-average shares outstanding	434,612		8,630		6,201,954
Weighted-average pre-funded warrants outstanding	—		—		695,111
Number of shares used in per share computation	434,612		8,630		6,897,065
Net loss per share, basic and diluted	$	(550.28)	$	(550.29)	$	(13.76)

The following weighted-average equity instruments were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented:


	Year Ended December 31,
	2025	2024	2023
Options to purchase common stock	1,785,568	3,212,734	2,583,226
Unvested restricted stock units	27,806	68,027	4,240
Outstanding Parapyre Warrants	1,532,591	686,724	5,625.00

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.

Spyre Therapeutics, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

Other Available Disclosures