VERACYTE, INC. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator for basic and diluted EPS — net income (loss) (A) | $ | 66,353 | $ | 24,138 | $ | (74,404) | |||||||||||
| Denominator for basic EPS — weighted average shares (B) | 78,584 | 76,485 | 72,644 | ||||||||||||||
| Effect of potentially dilutive common stock from: | |||||||||||||||||
| Shares of common stock subject to outstanding options | 502 | 553 | — | ||||||||||||||
| Restricted stock units | 1,440 | 1,087 | — | ||||||||||||||
| Employee stock purchase plan | 47 | 38 | — | ||||||||||||||
| Dilutive potential common shares | 1,989 | 1,678 | — | ||||||||||||||
| Denominator for diluted EPS — adjusted weighted average shares and assumed conversions (C) | 80,573 | 78,163 | 72,644 | ||||||||||||||
| Basic EPS (A / B) | $ | 0.84 | $ | 0.32 | $ | (1.02) | |||||||||||
| Diluted EPS (A / C) | $ | 0.82 | $ | 0.31 | $ | (1.02) | |||||||||||
| Common stock equivalent shares excluded from the dilutive calculation due to antidilutive effect: | |||||||||||||||||
| Shares of common stock subject to outstanding options | 493 | 1,802 | 3,821 | ||||||||||||||
| Restricted stock units | 41 | 90 | 2,714 | ||||||||||||||
| Employee stock purchase plan | — | — | 35 | ||||||||||||||
| Anti-dilutive potential common shares | 534 | 1,892 | 6,570 | ||||||||||||||
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.