Wave Life Sciences Ltd. Earnings Per Share Disclosure
10. NET LOSS PER ORDINARY SHARE
In connection with the December 2025 Offering, the Company sold 2,631,578 2025 Pre-Funded Warrants, which are included in the total vested and exercisable pre-funded warrants (the Company's pre-funded warrants outstanding are collectively referred to as the “Pre-Funded Warrants”). As of December 31, 2025 and 2024, there were 11,600,257 and 8,968,679, respectively, vested and exercisable Pre-Funded Warrants outstanding to purchase ordinary shares for the exercise price of $0.0001 per share, provided that, unless and until the Company obtains shareholder approval for the issuance of the shares underlying the Pre-Funded Warrants, a holder will not be entitled to exercise any portion of any Pre-Funded Warrant, which, upon giving effect to such exercise, would cause (i) the aggregate number of our ordinary shares beneficially owned by the holder (together with its affiliates) to exceed, depending on the terms of the applicable Pre-Funded Warrants and in certain cases at the election of the holder, either 4.99%, 9.99% or 19.99% of the number of our ordinary shares outstanding immediately after giving effect to the exercise, or (ii) the combined voting power of our securities beneficially owned by the holder (together with its affiliates) to exceed, depending on the terms of the applicable Pre-Funded Warrants and in certain cases at the election of the holder, either 4.99%, 9.99% or 19.99% of the combined voting power of all of our securities then outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the applicable Pre-Funded Warrants. The Pre-Funded Warrants are included in the weighted-average shares outstanding used in the calculation of basic net loss per share as the exercise price is negligible and the warrants are fully vested and exercisable.
Basic loss per share is computed by dividing net loss attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding.
The Company’s potentially dilutive shares, which include outstanding share options to purchase ordinary shares and RSUs, are considered to be ordinary share equivalents and are only included in the calculation of diluted net loss per share when their effect is dilutive.
The table below sets forth the computation of the Company’s basic and diluted net loss attributable to ordinary shareholders:
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|
Year Ended December 31, |
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2025 |
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|
2024 |
|
|
2023 |
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|
|
(in thousands except share and per share data) |
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Numerator: |
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|
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|
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Net loss attributable to ordinary shareholders |
|
$ |
(204,378 |
) |
|
$ |
(97,008 |
) |
|
$ |
(57,513 |
) |
Denominator: |
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|
|
|
|
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|
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|||
Weighted-average ordinary shares outstanding |
|
|
168,649,795 |
|
|
|
138,277,468 |
|
|
|
106,097,268 |
|
Net loss per share, basic and diluted |
|
$ |
(1.21 |
) |
|
$ |
(0.70 |
) |
|
$ |
(0.54 |
) |
The following potential ordinary shares, presented based on amounts outstanding at each period end, were excluded from the calculation of diluted net loss per share attributable to ordinary shareholders for the periods indicated because including them would have had an anti-dilutive effect:
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|
As of December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
|
|||
Options to purchase ordinary shares |
|
|
20,326,871 |
|
|
|
19,453,131 |
|
|
|
14,107,710 |
|
RSUs |
|
|
1,777,416 |
|
|
|
832,043 |
|
|
|
637,557 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2017 | Mar 12, 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.