Net Income (Loss) Per Share
Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.
The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts):
 
 Year Ended December 31,
 20242023
Numerator:
Net income attributable to Travelzoo—continuing operations$13,564 $11,906 
Net income (loss) attributable to Travelzoo—discontinued operations— 460 
Denominator:
Weighted average common shares—basic12,594 14,897 
Effect of dilutive securities: stock options258 67 
Weighted average common shares—diluted12,852 14,964 
Income (loss) per share—basic
Continuing operations$1.08 $0.80 
Discontinued operations— 0.03 
Net income (loss) per share —basic$1.08 $0.83 
Income (loss) per share—diluted
Continuing operations$1.06 $0.80 
Discontinued operations— 0.03 
Net income (loss) per share—diluted$1.06 $0.83 
For the years ended December 31, 2024 and 2023, options to purchase 0 and 750,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.

Historical Timeline

Fiscal YearFiled
2024Mar 19, 2025Showing above
2017Mar 16, 2018

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.