NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2025

Net income (loss) per share

We compute basic net income (loss) per common share by dividing net income (loss) by the weighted-average number of common shares outstanding. We compute diluted net income (loss) per common share by dividing net income (loss) by the weighted-average number of common shares and dilutive potential common share equivalents then outstanding during the period. Potential common shares consist of shares issuable upon the vesting of restricted stock units and the exercise of stock options (the proceeds of which are then assumed to have been used to repurchase outstanding shares using the treasury stock method). Because the inclusion of potential common shares would be anti-dilutive for periods presenting a net loss, diluted net loss per common share is the same as basic net loss per common share.

The following table summarizes the computation of basic and diluted net income (loss) per share attributable to common shareholders of the Company (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Net income (loss)	$	(8,498)	$	(15,557)	$	37,483	$	(53,691)

Weighted average common shares outstanding - basic	56,929,103		56,507,956		56,799,755		54,498,037
Effect of dilutive securities:

Restricted stock units	—		—		670,000		—

Warrants to purchase common stock	—		—		10,757		—
Weighted average common shares outstanding - diluted	56,929,103		56,507,956		57,480,512		54,498,037

Net income (loss) per share - basic	$	(0.15)	$	(0.28)	$	0.66	$	(0.99)
Net income (loss) per share - diluted	$	(0.15)	$	(0.28)	$	0.65	$	(0.99)

The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share for the periods indicated because including them would have had an anti-dilutive effect:


	Nine Months Ended September 30,
	2025	2024
Options to purchase common stock	9,749,471	11,235,628

Shares issuable under employee stock purchase plan	—	27,518
Unvested performance restricted stock units	—	19,000
Warrants to purchase common stock	—	10,757
	9,749,471	11,292,903

Black Diamond Therapeutics, Inc. 10-Q