Note 11  Net Income Per-Share  

 

Basic and diluted income per share is based on the weighted average number of shares of common stock and potential common stock outstanding during the period. Potential common stock, for the purpose of determining diluted income per share, includes the effects of dilutive unvested restricted stock and options to purchase common stock. The effect of such potential common stock is computed using the treasury stock method.

 

The following table presents a reconciliation of the numerators and denominators of the basic and diluted income per share computations for income from continuing operations. In the table below, income represents the numerator, and shares represent the denominator (in thousands except per share amounts):

 

 

 

Years Ended

 

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Basic Earnings per share:

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

Net income

 

$15,125

 

 

$5,976

 

 

$74

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding

 

 

24,953

 

 

 

22,403

 

 

 

21,602

 

Basic Earnings per share

 

$0.61

 

 

$0.27

 

 

$0.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted Earnings per share:

 

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$15,125

 

 

$5,976

 

 

$74

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding

 

 

24,953

 

 

 

22,403

 

 

 

21,602

 

Dilutive options outstanding

 

 

2,269

 

 

 

2,672

 

 

 

419

 

Number of shares used in diluted per-share computation

 

 

27,222

 

 

 

25,075

 

 

 

22,021

 

Diluted Earnings per share

 

$0.56

 

 

$0.24

 

 

$0.00

 

 

For the years ended December 31, 2025, 2024, and 2023, 39,000, 2,126,000 and 3,226,000 potentially dilutive shares, respectively, were excluded from the calculation of dilutive shares because their effect would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Mar 18, 2026Showing above
2024Apr 15, 2025
2023Mar 29, 2024

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.