TransMedics Group, Inc. Earnings Per Share Disclosure
14. Net Income (Loss) per Share
Basic net income (loss) per common share is computed by dividing the net income (loss) by the weighted average number of shares of common stock outstanding for the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding for the period, including potential dilutive common shares assuming the dilutive effect of outstanding stock awards, using the treasury stock method, and outstanding convertible notes, using the if-converted method.
A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations are as follows (in thousands, except share and per share amounts):
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator: |
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Net income (loss) |
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$ |
190,291 |
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$ |
35,464 |
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$ |
(25,028 |
) |
Add: Interest expense, net of tax, attributable |
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7,285 |
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|
— |
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|
— |
|
Net income (loss), diluted |
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$ |
197,576 |
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$ |
35,464 |
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$ |
(25,028 |
) |
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Denominator: |
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Weighted average basic common shares |
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33,993,468 |
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33,229,953 |
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32,517,372 |
|
Effect of dilutive securities: |
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Convertible senior notes |
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4,893,805 |
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— |
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— |
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Options to purchase common stock |
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|
1,406,848 |
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1,783,507 |
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— |
|
Restricted stock units |
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|
241,805 |
|
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|
193,476 |
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|
— |
|
Warrants to purchase common stock |
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— |
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3,470 |
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|
— |
|
Restricted stock awards |
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|
410 |
|
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|
3,197 |
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— |
|
Employee stock purchase plan |
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4,358 |
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3,234 |
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|
|
— |
|
Weighted average dilutive common shares |
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|
40,540,694 |
|
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|
35,216,837 |
|
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32,517,372 |
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Net income (loss) per share: |
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Basic |
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$ |
5.60 |
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$ |
1.07 |
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$ |
(0.77 |
) |
Diluted |
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$ |
4.87 |
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$ |
1.01 |
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|
$ |
(0.77 |
) |
The Company excluded the following potential common shares, presented based on weighted average shares outstanding, from the computation of diluted net income (loss) per share because including them would have had an anti-dilutive effect:
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Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Convertible senior notes |
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— |
|
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|
4,893,838 |
|
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|
3,150,834 |
|
Options to purchase common stock |
|
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|
482,985 |
|
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371,502 |
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2,595,161 |
|
Employee stock purchase plan |
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|
9,373 |
|
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|
10,170 |
|
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|
13,262 |
|
Restricted stock units |
|
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|
52,305 |
|
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|
9,912 |
|
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|
141,906 |
|
Restricted stock awards |
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|
1,018 |
|
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|
1,125 |
|
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|
13,586 |
|
Warrants to purchase common stock |
|
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— |
|
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— |
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14,440 |
|
|
|
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545,681 |
|
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5,286,547 |
|
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|
5,929,189 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
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.