TUCOWS INC /PA/ Earnings Per Share Disclosure
18. Earnings Per Common Share:
The following table reconciles the numerators and denominators of the basic and diluted earnings per common share computation (Dollar amounts in thousands of US dollars, except for share data):
| Year ended December 31, | ||||||||||||
| 2024 | 2023 | 2022 | ||||||||||
| Numerator for basic and diluted earnings per common share: | ||||||||||||
| Net income (loss) for the period | $ | (109,860 | ) | $ | (96,197 | ) | $ | (27,571 | ) | |||
| Denominator for basic and diluted earnings per common share: | ||||||||||||
| Basic weighted average number of common shares outstanding | 10,967,581 | 10,864,086 | 10,769,280 | |||||||||
| Effect of outstanding stock options | - | - | - | |||||||||
| Diluted weighted average number of shares outstanding | 10,967,581 | 10,864,086 | 10,769,280 | |||||||||
| Basic and diluted earnings per common share | $ | (10.02 | ) | $ | (8.85 | ) | $ | (2.56 | ) | |||
For the year ended December 31, 2024, December 31, 2023 and December 31, 2022 the Company recorded a net loss, thus all outstanding options were considered anti-dilutive and excluded from the computation of diluted income per common share.
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.