12. Earnings per share

Earnings per share was computed as follows (in thousands, except per share amounts):

   
Years Ended December 31,
 
 
2024
   
2023
 
Net (loss) income
 
$
(9,863
)
 
$
4,748
                 
Shares:
               
Basic:  Weighted average common shares outstanding
   
9,997
     
9,951
 
Add:  Dilutive effect of outstanding equity awards as determined by the treasury stock method
   
     
70
 
Diluted:  Weighted average common and common equivalent shares outstanding
   
9,997
     
10,021
 
                 
Net (loss) income per common share:
               
Basic
 
$
(0.99
)
 
$
0.48
Diluted
   
(0.99
)
   
0.47

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, restricted stock units and performance stock awards, when the average market price of the common stock is lower than the exercise price of the related stock award during the period.  These outstanding stock awards are not included in the computation of diluted earnings per share because the effect would be anti-dilutive.  Furthermore, in periods when a net loss is reported, such as in 2024, basic and diluted net loss per common share are calculated using the same method.  Anti-dilutive option awards excluded from the computation of earnings per dilutive share were 1.4 million and 1.1 million at December 31, 2024 and 2023, respectively. Anti-dilutive restricted stock awards excluded from the computation of earnings per dilutive share were 0.3 million and zero at December 31, 2024 and 2023, respectively. Anti-dilutive performance stock awards excluded from the computation of earnings per dilutive share were 0.1 million and zero at December 31, 2024 and 2023, respectively.
Free Sentinel

Want the next TRANSACT TECHNOLOGIES INC earnings per share disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment TRANSACT TECHNOLOGIES INC's next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

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.