Turtle Beach Corp Earnings Per Share Disclosure
Note 8. Net Income (Loss) Per Share
The following table sets forth the computation of basic and diluted net income (loss) per share of common stock attributable to common stockholders:
|
|
Year Ended |
|
|||||||||
|
|
December 31, |
|
|||||||||
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
|
|
(in thousands, except per-share data) |
|
|||||||||
Net income (loss) |
|
$ |
16,183 |
|
|
$ |
(17,679 |
) |
|
$ |
(59,546 |
) |
|
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding — Basic |
|
|
20,022 |
|
|
|
17,135 |
|
|
|
16,450 |
|
Plus incremental shares from assumed conversions: |
|
|
|
|
|
|
|
|
|
|||
Dilutive effect of restricted stock |
|
|
175 |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of stock options |
|
|
222 |
|
|
|
— |
|
|
|
— |
|
Dilutive effect of warrants |
|
|
413 |
|
|
|
— |
|
|
|
— |
|
Weighted average common shares outstanding — Diluted |
|
|
20,832 |
|
|
|
17,135 |
|
|
|
16,450 |
|
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.81 |
|
|
$ |
(1.03 |
) |
|
$ |
(3.62 |
) |
Diluted |
|
$ |
0.78 |
|
|
$ |
(1.03 |
) |
|
$ |
(3.62 |
) |
Incremental shares from stock options and restricted stock awards are computed by the treasury stock method. The weighted average shares listed below were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive for the periods presented or were otherwise excluded under the treasury stock method. The treasury stock method calculates dilution assuming the exercise of all in-the-money options and vesting of restricted stock, reduced by the repurchase of shares with the proceeds from the assumed exercises, unrecognized compensation expense for outstanding awards and the estimated tax benefit of the assumed exercises.
|
|
Year Ended |
|
|||||||||
|
|
December 31, |
|
|||||||||
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|||
|
(in thousands) |
|
||||||||||
Stock options |
|
|
361 |
|
|
|
1,374 |
|
|
|
1,669 |
|
Unvested restricted stock awards |
|
|
300 |
|
|
|
1,404 |
|
|
|
1,449 |
|
Total weighted average shares not included |
|
|
661 |
|
|
|
2,778 |
|
|
|
3,118 |
|
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.