EXPRO GROUP HOLDINGS N.V. Earnings Per Share Disclosure
| 21. | Earnings per share |
Basic earnings (loss) per share attributable to Company stockholders is calculated by dividing net income (loss) attributable to the Company by the weighted-average number of common shares outstanding for the period. Diluted earnings (loss) per share attributable to Company stockholders is computed giving effect to all potential dilutive common stock, unless there is a net loss for the period. We apply the treasury stock method to determine the dilutive weighted average common shares represented by unvested restricted stock units, stock options and ESPP shares.
The calculation of basic and diluted earnings (loss) per share attributable to the Company stockholder for years ended December 31, 2025, 2024 and 2023 respectively, are as follows (in thousands, except shares outstanding and per share amounts):
| Year Ended December 31, | ||||||||||||
| 2025 | 2024 | 2023 | ||||||||||
| Net income (loss) | $ | 51,686 | $ | 51,918 | $ | (23,360 | ) | |||||
| Basic weighted average number of shares outstanding | 114,997 | 114,762 | 109,161 | |||||||||
| Effect of dilutive securities: | ||||||||||||
| Unvested restricted stock units | 717 | 797 | - | |||||||||
| ESPP shares | 35 | 11 | - | |||||||||
| Stock options | - | 260 | - | |||||||||
| Diluted weighted average number of shares outstanding | 115,749 | 115,830 | 109,161 | |||||||||
| Total basic earnings (loss) per share | $ | 0.45 | $ | 0.45 | $ | (0.21 | ) | |||||
| Total diluted earnings (loss) per share | $ | 0.45 | $ | 0.45 | $ | (0.21 | ) | |||||
For the years ended December 31, 2025 and 2024, approximately 4.9 million and 1.8 million outstanding equity awards, respectively, were excluded because the exercise price exceeded the average market price of the Company's common stock. For the years ended December 31, 2023, the Company excluded all outstanding equity awards from the computation of diluted loss per share because their effect is antidilutive.
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.