Vertex, Inc. Earnings Per Share Disclosure
12.EARNINGS PER SHARE
The tables below illustrate the calculation of basic and diluted net income (loss) per common share for the Class A common stock and Class B common stock for the periods reflected below.
For the year ended December 31, | |||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||
Class A | Class B | Class A | Class B | Class A | Class B | ||||||||||||
Basic net income (loss) per share: | |||||||||||||||||
Numerator | |||||||||||||||||
Allocation of net income (loss) (1) | $ | 3,400 | $ | 3,811 | $ | (21,974) | $ | (30,755) | $ | (4,721) | $ | (8,372) | |||||
Denominator | |||||||||||||||||
Total shares used in per share computation | 74,934 |
| 83,997 | 64,724 |
| 90,586 | 54,753 |
| 97,106 | ||||||||
Basic net income (loss) per share: | $ | 0.05 | $ | 0.05 | $ | (0.34) | $ | (0.34) | $ | (0.09) | $ | (0.09) | |||||
Diluted net income (loss) per share: | |||||||||||||||||
Numerator | |||||||||||||||||
Allocation of net income (loss) (1) | $ | 3,480 | $ | 3,731 | $ | (21,974) | $ | (30,755) | $ | (4,721) | $ | (8,372) | |||||
Total net income (loss) used in per diluted computation | $ | 3,480 | $ | 3,731 | $ | (21,974) | $ | (30,755) | $ | (4,721) | $ | (8,372) | |||||
Denominator | |||||||||||||||||
Number shares used in basic per share computation | 74,934 | 83,997 | 64,724 | 90,586 | 54,753 | 97,106 | |||||||||||
Dilutive effect of common stock equivalents | 3,491 | — | — | — | — | — | |||||||||||
Total shares used in per share computation | 78,425 | 83,997 | 64,724 | 90,586 | 54,753 | 97,106 | |||||||||||
Dilutive net income (loss) per share: | $ | 0.04 | $ | 0.04 | $ | (0.34) | $ | (0.34) | $ | (0.09) | $ | (0.09) | |||||
(1) Allocation of net income (loss) is based on the percentage of shares outstanding. | |||||||||||||||||
The following weighted-average outstanding shares of common stock equivalents by award type were excluded from the computation of diluted net loss per share attributable to Class A common stock stockholders, as the impact of including them would have been anti-dilutive.
For the year ended December 31, | |||||
2025 | 2024 | | 2023 | ||
Stock Options (1) | — | 4,398 | 6,892 | ||
Out-of-the Money Stock Options | 29 | 136 | 482 | ||
RSAs | — | 63 | 168 | ||
RSUs | — | 4,559 | 3,910 | ||
ESPP | — | 31 | 42 | ||
Convertible Senior Notes (2) | 9,498 | 6,480 | — | ||
(1) Total excludes out-of-the money stock options. | |||||
(2) The Notes were issued on April 26, 2024. Proration of shares assumed to be converted from the Notes during the prior year period resulted in anti-dilutive impact to EPS. | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 29, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 16, 2022 | |
| 2020 | Mar 15, 2021 | |
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.