Basic and Diluted Net Income (Loss) Per Common Share

3 Months Ended

May 03, 2026

Basic and Diluted Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive potential common shares, including unvested restricted stock units, stock options, and warrants. Diluted net income per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities under the treasury stock method, where the average market price of the common stock exceeds the exercise prices for the respective periods. In periods of loss, there are no potentially dilutive common shares to add to the weighted average number of common shares outstanding.


	Thirteen weeks ended
(amounts in thousands, except per share data and share amounts)	May 3, 2026		May 4, 2025
Net loss	$	(11,093)	$	(10,840)

Weighted-average number of common shares outstanding, basic	14,668,023		14,792,080
Effect of dilutive securities(1)(2)	—		—
Weighted-average number of common shares outstanding, diluted	14,668,023		14,792,080

Basic net loss per share	$	(0.76)	$	(0.73)
Diluted net loss per share	$	(0.76)	$	(0.73)

(1) The effect of dilutive securities includes unvested restricted stock units and stock options. For the thirteen weeks ended May 3, 2026, there were no anti-dilutive unvested restricted stock units. For the thirteen weeks ended May 4, 2025, unvested restricted stock units of 1,710,191 were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. For the thirteen weeks ended May 3, 2026 and May 4, 2025, the effects of 385,285 and 495,366 stock options outstanding, respectively, were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.

(2) The Company prospectively corrected the diluted earnings per share calculation. The impact to previous years was not material.

Lovesac Co 10-Q