Xenon Pharmaceuticals Inc. Earnings Per Share Disclosure
The following table presents the calculation of basic and diluted net loss per common share for the years ended December 31, 2025, 2024 and 2023:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Numerator: |
|
|
|
|
|
|
|
|
|
|||
Net loss |
|
$ |
(345,910 |
) |
|
$ |
(234,330 |
) |
|
$ |
(182,393 |
) |
Denominator: |
|
|
|
|
|
|
|
|
|
|||
Common shares (weighted average) |
|
|
77,080,670 |
|
|
|
75,721,562 |
|
|
|
64,739,678 |
|
Pre-funded warrants (weighted average) |
|
|
2,173,081 |
|
|
|
2,173,081 |
|
|
|
2,149,327 |
|
Weighted average common shares |
|
|
79,253,751 |
|
|
|
77,894,643 |
|
|
|
66,889,005 |
|
Net loss per common share – basic and diluted |
|
$ |
(4.36 |
) |
|
$ |
(3.01 |
) |
|
$ |
(2.73 |
) |
The weighted average number of common shares used in the basic and diluted net loss per common share calculations includes the weighted average pre-funded warrants outstanding during the period as they are exercisable at any time for nominal cash consideration (note 9d).
The Company reported net losses for each of the years ended December 31, 2025, 2024 and 2023, and therefore excluded all potentially dilutive outstanding securities from the computation of diluted net loss per common share as their inclusion would have had an anti-dilutive effect. The following table summarizes these potentially dilutive securities:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Stock options |
|
|
11,074,720 |
|
|
|
10,709,289 |
|
|
|
8,894,502 |
|
RSUs |
|
|
348,994 |
|
|
|
— |
|
|
|
— |
|
PSUs |
|
|
257,450 |
|
|
|
210,000 |
|
|
|
— |
|
Warrants |
|
|
— |
|
|
|
40,000 |
|
|
|
40,000 |
|
Total |
|
|
11,681,164 |
|
|
|
10,959,289 |
|
|
|
8,934,502 |
|
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.