Verastem, Inc. Earnings Per Share Disclosure
13. Net Loss per Share
ASC Topic 260, Earnings Per Share, requires the Company to calculate its net loss per share based on basic and diluted net loss per share, as defined. Basic EPS excludes dilution and is computed by dividing net loss by the weighted average number of shares outstanding for the period. For the years ended December 31, 2025, 2024, and 2023 net loss, basic and diluted EPS are the same as the assumed exercise of stock options, RSUs, ESPP, Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and Warrants are anti-dilutive.
The following potentially dilutive securities were excluded from the calculation of diluted net loss per share due to their anti-dilutive effect:
Year Ended December 31, | |||||||
| 2025 | | 2024 | | 2023 |
| |
Outstanding stock options | 3,030,432 |
| 2,479,037 |
| 2,270,359 | ||
Outstanding restricted stock units | 1,313,898 | 1,010,233 | 209,289 | ||||
Warrants | 8,429,166 | 18,083,334 | — | ||||
Employee stock purchase plan | 10,240 | 8,033 | 7,475 | ||||
Series A Convertible Preferred Stock | — | 833,333 | 833,333 | ||||
Series B Convertible Preferred Stock | — | — | 4,236,570 | ||||
Total potentially dilutive securities | 12,783,736 |
| 22,413,970 |
| 7,557,026 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2021 | Mar 28, 2022 | |
| 2020 | Mar 18, 2021 | |
| 2019 | Mar 11, 2020 | |
| 2018 | Mar 12, 2019 | |
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.