15. Net Loss Per Share
The Company computes net loss per share of Class A and Class B Common Stock using the two-class method. As the liquidation and dividend rights for both Class A and Class B Common Stock are identical, the net loss is allocated on a proportionate basis to the weighted-average number of shares of common stock outstanding for the period. Basic net loss per share attributable to Class A and Class B stockholders is computed by dividing the net loss by the weighted-average number of Class A and Class B Common Stock outstanding during the period.
For the calculation of diluted net loss per share, net loss for basic EPS is adjusted by the effect of dilutive securities, including awards under the Company’s equity compensation plans. The dilutive potential shares of common stock are computed using the treasury stock method or the as-if converted method, as applicable. Since the Company is in a loss position for all periods reported, basic and diluted net loss per share are the same for all periods as the inclusion of potential dilutive shares would have been anti-dilutive.
The following tables present the calculation of basic and diluted net loss per share attributable to common stockholders (in thousands, except per share data):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Fiscal Year Ended June 30, |
| | 2025 | | 2024 | | 2023 |
| Class A | | Class B | | Class A | | Class B | | Class A | | Class B |
| Numerator: | | | | | | | | | | | |
| Net Loss | $ | (160,050) | | | $ | (96,637) | | | $ | (181,587) | | | $ | (118,932) | | | $ | (283,907) | | | $ | (202,854) | |
| Denominator: | | | | | | | | | | | |
| Weighted-average shares outstanding, basic and diluted | 163,230 | | 98,557 | | 156,580 | | 102,553 | | 149,493 | | 106,814 |
| Net loss per share, basic and diluted | $ | (0.98) | | | $ | (0.98) | | | $ | (1.16) | | | $ | (1.16) | | | $ | (1.90) | | | $ | (1.90) | |
The potential weighted average dilutive securities that were not included in the dilutive earnings per share calculation because the effect would be anti-dilutive are as follows (shares in thousands):
| | | | | | | | | | | | | | | | | |
| Fiscal Year Ended June 30, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| Class A Common Stock RSU awards | 7,423 | | 8,320 | | 7,426 |
| Class A Common Stock restricted stock awards | 29 | | 23 | | 17 |
| Total potentially dilutive securities | 7,452 | | 8,343 | | 7,443 |
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.