XOMA Royalty Corp Earnings Per Share Disclosure
13. Net Income (Loss) Per Share Available to (Attributable to) Common Stockholders
The following is a reconciliation of the numerator (net income or loss) and the denominator (number of shares) used in the calculation of basic and diluted net income (loss) per share available to (attributable to) common stockholders (in thousands, except per share amounts):
Year Ended December 31, | ||||||
| 2025 | 2024 | ||||
Numerator | ||||||
Net income (loss) | $ | 31,712 | $ | (13,821) | ||
Less: Series A accumulated dividends |
| (2,122) |
| (2,122) | ||
Less: Series B accumulated dividends | (3,406) | (3,350) | ||||
Less: Allocation of undistributed earnings to participating securities | (7,668) | — | ||||
Net income (loss) available to (attributable to) common stockholders, basic | $ | 18,516 | $ | (19,293) | ||
Add: Adjustments to undistributed earnings allocated to participating securities |
| 7,668 | — | |||
Net income (loss) available to (attributable to) common stockholders, diluted | $ | 26,184 | $ | (19,293) | ||
|
|
| ||||
Denominator |
|
|
| |||
Weighted-average shares used in computing net income (loss) per share available to (attributable to) common stockholders, basic |
| 12,081 |
| 11,701 | ||
Effect of dilutive Series X Preferred Stock | 5,003 | — | ||||
Effect of dilutive warrants for common stock | 3 | — | ||||
Effect of dilutive PSUs |
| 240 | — | |||
Effect of dilutive RSUs | 17 | — | ||||
Effect of dilutive common stock options |
| 638 | — | |||
Weighted-average shares used in computing net income (loss) per share available to (attributable to) common stockholders, diluted |
| 17,982 |
| 11,701 | ||
Net income (loss) per share available to (attributable to) common stockholders, basic | $ | 1.53 | $ | (1.65) | ||
Net income (loss) per share available to (attributable to) common stockholders, diluted | $ | 1.46 | $ | (1.65) | ||
Potentially dilutive securities are excluded from the calculation of diluted net income (loss) per share available to (attributable to) common stockholders if their inclusion is anti-dilutive.
The following table shows the weighted-average shares from outstanding securities considered anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share available to (attributable to) common stockholders (in thousands):
Year Ended December 31, | ||||
2025 | 2024 | |||
Convertible Preferred Stock | — | 5,003 | ||
Common stock options |
| 562 | 1,755 | |
Contingently issuable PSUs | — | 273 | ||
Warrants for common stock |
| 120 | 131 | |
Total |
| 682 |
| 7,162 |
For PSUs with market conditions, if the market conditions have not been satisfied by the end of the reporting period, the number of shares that would be issuable is based on the market price at the end of the reporting period. This approach treats the end of the reporting period as if it were the end of the contingency period for calculating diluted earnings per share. For market conditions that have not yet been satisfied, no shares would be issuable based on the market price of $26.59 per share as of December 31, 2025.
For PSUs that have satisfied the market conditions but have not satisfied service conditions by the end of the reporting period, the number of shares issuable is included in the calculation of diluted earnings per share if the effect is dilutive. This includes PSUs that achieved the $30.00 stock price hurdle in November 2024 and the $35.00 stock price hurdle in September 2025, respectively, but still have remaining time-based vesting requirements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 10, 2021 | |
| 2019 | Mar 10, 2020 | |
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.