Teads Holding Co.TEAD

Teads Holding Co. Earnings Per Share Disclosure

10-KFiled Mar 7, 20251 min read
14. Net Income (Loss) Per Common Share
The following table presents the computation of the Company’s basic and diluted net income (loss) per share attributable to its Common Stockholders:
Year Ended December 31,
202420232022
(Dollars in thousands)
Numerator:
Basic and diluted:
Net (loss) income attributed to Common Stockholders - basic
$(711)$10,242 $(24,581)
Adjustments related to convertible debt (1)
(4,825)(13,930)— 
Net (loss) income attributable to Common Stockholders - diluted
$(5,536)$(3,688)$(24,581)
Denominator:
Basic weighted-average shares
49,321,301 50,900,422 55,615,385 
Weighted average dilutive share equivalents:
Convertible debt (1)
3,388,055 6,064,877 — 
Diluted weighted-average shares
52,709,356 56,965,299 55,615,385 
Net (loss) income per share attributable to Common Stockholders:
Basic$(0.01)$0.20 $(0.44)
Diluted$(0.11)$(0.06)$(0.44)
____________________
(1) The Company uses the if-converted method to calculate the dilutive impact of the Convertible Notes, which assumes share settlement as of the beginning of the period if the effect is more dilutive than cash settlement.
The following weighted-average shares have been excluded from the calculation of diluted net income (loss) per share attributable to Common Stockholders for each period presented because they are anti-dilutive:
Year Ended December 31,
202420232022
Convertible debt— — 9,440,000 
Options to purchase Common Stock
2,192,947 2,523,643 2,681,436 
Warrants172,159 188,235 188,235 
Restricted stock units3,939,256 3,275,430 2,785,510 
Performance stock units742,148 51,534 — 
Total shares excluded from diluted net income (loss) per share7,046,510 6,038,842 15,095,181 

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.

Other Available Disclosures

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