Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2025

8. Net Income (Loss) per Share

Basic and diluted net income (loss) per share attributable to common stockholders was calculated as follows (in thousands, except share and per share data):


	Three Months Ended September 30,					Nine Months Ended September 30,
	2025		2024			2025		2024
Basic Earnings Per Share:
Numerator:
Net income (loss) from continuing operations attributable to common stockholders	$	8,204	$	(51,035	)	$	21,031	$	(110,134	)
Net income from discontinuing operations attributable to common stockholders	$	—	$	139,811		$	—	$	125,907
Net income attributable to common stockholders - basic	$	8,204	$	88,776		$	21,031	$	15,773

Denominator:
Weighted-average shares outstanding - basic		8,758,692		7,632,242			8,735,418		7,504,763
Net income (loss) from continuing operations per share attributable to common stockholders - basic	$	0.94	$	(6.69	)	$	2.41	$	(14.68	)
Net income from discontinued operations per share attributable to common stockholders - basic	$	—	$	18.32		$	—	$	16.78
Net income per share attributable to common stockholders - basic	$	0.94	$	11.63		$	2.41	$	2.10

Diluted Earnings Per Share:
Numerator:
Net income (loss) from continuing operations attributable to common stockholders	$	8,204	$	(51,035	)	$	21,031	$	(110,134	)
Net income from discontinuing operations attributable to common stockholders	$	—	$	139,811		$	—	$	125,907
Net income attributable to common stockholders - diluted	$	8,204	$	88,776		$	21,031	$	15,773

Denominator:
Weighted-average shares outstanding - basic		8,758,692		7,632,242			8,735,418		7,504,763

Dilutive impact from:
Stock options to purchase common stock		2,139		—			—		—
Unvested restricted stock units		8,990		—			9,377		—
Shares issuable under employee stock purchase plan		1,698		—			2		—
Weighted-average shares outstanding - diluted		8,771,519		7,632,242			8,744,797		7,504,763
Net income (loss) per share applicable to common stockholders - diluted	$	0.94	$	(6.69	)	$	2.40	$	(14.68	)
Net income from discontinuing operations attributable to common stockholders - diluted	$	—	$	18.32		$	—	$	16.78
Net income attributable to common stockholders - diluted	$	0.94	$	11.63		$	2.40	$	2.10

Anti-dilutive potential common stock equivalents excluded from the calculation of net income (loss) per share:
Stock options to purchase common stock		1,188,732		956,015			1,188,732		956,015
Unvested restricted stock units		100,824		137,642			100,824		137,642
Shares issuable under employee stock purchase plan		1,256		5,002			423		1,679
Warrants to purchase common stock		32,379		32,379			32,379		32,379

The Company’s potential dilutive securities include stock options, unvested restricted common stock and shares issuable under the 2015 Employee Stock Purchase Plan. The effect of dilutive securities was calculated using the treasury stock method. The anti-dilutive potential common stock equivalents for the three and nine months ended September 30, 2025 were excluded from the computation of diluted net income per share attributable to common stockholders because those stock options to purchase common stock and restricted stock units had an anti-dilutive impact due to the assumed proceeds per share using the treasury stock method being greater than the average fair value of the Company’s common shares for those periods. For that same period, the warrants to purchase common stock were excluded because the exercise price of the Tranche A Warrants is greater than the average fair value of the Company’s common shares. The anti-dilutive potential common stock equivalents for the three and nine months ended September 30, 2024 were excluded from the computation of diluted net loss per share attributable to common stockholders because

those stock options to purchase common stock, restricted stock units, and shares issuable under employee stock purchase plan had an anti-dilutive impact as the Company reported a net loss from continuing operations attributable to common stockholders for those periods.

The Company utilizes the control number concept in the computation of diluted earnings per share to determine whether potential common stock equivalents are dilutive. The control number used is income (loss) from continuing operations. The control number concept requires that the same number of potentially dilutive securities applied in computing diluted earnings per share from continuing operations be applied to all other categories of income or loss, regardless of their anti-dilutive effect on such categories. Since the Company had a net loss from continuing operations for all periods in which discontinued operations is presented, no dilutive effect has been recognized in the calculation of income from discontinued operations per share. Therefore, the weighted average number of common shares outstanding used to calculate both basic and diluted net loss per share attributable to common stockholders is the same for the three and nine months ended September 30, 2024.

Seres Therapeutics, Inc. 10-Q