NET INCOME PER SHARE

The Company presents basic and diluted earnings per share ("EPS") data for its common stock. Basic EPS is calculated by dividing the net income (loss) attributable to stockholders of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted EPS is determined by adjusting the net income attributable to stockholders of the Company and the weighted average number of shares of common stock outstanding during the period for the effects of all dilutive potential common shares, including awards under stock-based compensation arrangements.

The Company's unvested restricted stock awards (see Note 9 - Stock-Based Compensation and Equity) are considered participating securities under ASC 260, Earnings Per Share, because they entitle holders to non-forfeitable rights to dividends until the awards vest or are forfeited. When a company has a security that qualifies as a "participating security," the Codification requires the use of the two-class method when computing basic EPS. The two-class method is an earnings allocation formula that determines EPS for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. In determining the amount of net income to allocate to common stockholders, income is allocated to both common stock and participating securities based on their respective weighted average shares outstanding for the period, with net income attributable to common stockholders ultimately equaling net income less net income attributable to participating securities. Diluted EPS for the Company's common stock is computed using the more dilutive of the two-class method or the treasury stock method.

The following is a calculation of the basic and diluted EPS for the Company's common stock, including a reconciliation between net income and net income attributable to common stockholders for the years ended December 31, 2024, 2023, and 2022:


(In thousands, except for per share data)	2024		2023		2022
Basic EPS
Numerator
Net income (loss)	$	(20,439)	$	(48,434)	$	15,867
Less: Net income (loss) attributable to participating securities	766		1,089		(311)
Net income (loss) attributable to common stockholders	$	(19,673)	$	(47,345)	$	15,556
Denominator
Weighted average shares outstanding used in basic per common share computations	14,300		14,187		14,356
Basic EPS	$	(1.38)	$	(3.34)	$	1.08

Diluted EPS
Numerator


Net income (loss) attributable to common stockholders for diluted EPS	$	(19,673)	$	(47,345)	$	15,556
Denominator
Weighted average shares outstanding used in basic per common share computations	14,300		14,187		14,356
Weighted average effect of dilutive securities:
Performance share awards	—		—		—
Weighted average shares outstanding used in diluted per common share computations	14,300		14,187		14,356
Diluted EPS	$	(1.38)	$	(3.34)	$	1.08

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.

TruBridge, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

Other Available Disclosures