Net Loss Per Share
Net loss per share is allocated based on the contractual participation rights of the Class A and Class B common shares as if the loss for the year has been distributed. As the liquidation and dividend rights are identical, the net loss is allocated on a proportionate basis.
A reconciliation of the denominator used in the calculation of basic and diluted loss per share is as follows (in thousands, except share and per share data):
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| Year ended |
| December 31, 2025 | | December 31, 2024 | | December 31, 2023 |
| Class A | | Class B | | Class A | | Class B | | Class A | | Class B |
| Numerator | | | | | | | | | | | |
| Net loss | $ | (24,408) | | | $ | (1,761) | | | $ | (51,218) | | | $ | (3,824) | | | $ | (118,443) | | | $ | (9,082) | |
| | | | | | | | | | | |
| Denominator | | | | | | | | | | | |
| Weighted-average common shares outstanding - basic and diluted | 52,485,597 | | | 3,786,920 | | | 51,509,798 | | | 3,845,583 | | | 50,246,900 | | | 3,852,857 | |
| Basic and diluted net loss per share | $ | (0.47) | | | $ | (0.47) | | | $ | (0.99) | | | $ | (0.99) | | | $ | (2.36) | | | $ | (2.36) | |
The anti-dilutive securities excluded from the weighted-average shares used to calculate the diluted net loss per common share were as follows:
| | | | | | | | | | | | | | | | | |
| As of December 31, |
| 2025 | | 2024 | | 2023 |
| Shares subject to outstanding common stock options | 463,369 | | | 892,396 | | | 1,211,619 | |
| Shares subject to unvested restricted stock units and performance restricted stock units | 2,856,553 | | | 2,723,666 | | | 2,198,411 | |
| Shares issuable pursuant to the ESPP | 144,961 | | | 122,833 | | | 84,323 | |
| Shares underlying our convertible senior notes | 6,132,025 | | | 6,132,025 | | | 9,547,320 | |
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.