Entrada Therapeutics, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Numerator: | |||||||||||
Net income (loss) | $ | (143,750) | $ | 65,626 | |||||||
| Denominator: | |||||||||||
Weighted‑average common shares outstanding, basic | 41,371,486 | 37,306,363 | |||||||||
Effect of dilutive securities | — | 1,696,806 | |||||||||
Weighted‑average common shares outstanding, diluted | 41,371,486 | 39,003,169 | |||||||||
Net income (loss), basic | $ | (3.47) | $ | 1.76 | |||||||
Net income (loss), diluted | $ | (3.47) | $ | 1.68 | |||||||
| Year Ended December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Unvested restricted common stock | 2,284,277 | 440,353 | |||||||||
Unvested performance stock units | 438,500 | 438,500 | |||||||||
| Stock options to purchase common stock | 5,960,989 | 2,452,396 | |||||||||
| 8,683,766 | 3,331,249 | ||||||||||
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.