Net Loss Per Share

3 Months Ended

Mar. 31, 2026

Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share is computed by giving effect to all potentially dilutive common stock equivalents outstanding for the period. For the periods in the table below where the impact was dilutive, the numerator is decreased to reverse the gain on change in fair value of share-settled warrants, and the denominator is increased to include the number of shares issuable upon the potential exercise of warrants. For purposes of the calculations below, stock options, restricted stock units, and the 0% Convertible Senior Notes due 2026 (the “2026 Notes”) are considered to be common stock equivalents but are excluded from the calculation of diluted net loss per share when including them has an anti-dilutive effect.

The share-settled warrants and cash-settled warrants are not participating securities. The share-settled warrants are excluded from the calculation of diluted EPS for the three months ended March 31, 2026, as their effect would have been anti-dilutive because the exercise prices were greater than the average market price of the common shares for that period. The cash-settled warrants are not included in the calculation of diluted EPS due to the cash-settlement requirement.

The Company uses the treasury stock method for stock options, restricted stock units, and share-settled warrants, and uses the if-converted method for convertible debt. See Note 8 – Senior Notes, Capped Call Transactions and Warrants for additional information about the 2026 Notes, First Lien Convertible Senior Notes due 2029 (“2029 Notes”), and Second Lien Senior Subordinated Secured Notes due 2029 (the “Second Lien Notes,” and together with the 2026 Notes and the 2029 Notes, the “Notes”).

The following table presents shares used in calculating basic and diluted net loss per share for the three months ended March 31, 2026 and 2025, as follows:


	Three Months Ended March 31,
	2026		2025

	(In thousands, except per share amounts)
Numerator:
Net loss available to shareholders for basic net loss per share	$	(8,827)	$	(14,133)
Gain on change in fair value of share-settled warrants	—		(8,824)
Net loss available to shareholders for diluted net loss per share	(8,827)		(22,957)

Denominator:
Weighted average number of shares outstanding used to compute basic net loss per share	12,060,769		6,104,729

Impact of potential exercise of warrants	—		248,934
Weighted average number of shares outstanding used to compute diluted net loss per share	12,060,769		6,353,663

Net loss per share:
Basic	$	(0.73)	$	(2.32)
Diluted	$	(0.73)	$	(3.61)

The securities listed below were excluded from the computation of diluted net loss per share for all periods presented, as their effect would have been anti-dilutive:


	As of March 31,
	2026	2025
Shares subject to outstanding common stock options and employee stock purchase plan	209,762	174,484
Restricted stock units	784,151	720,180
Share-settled warrants	1,020,390	—
2026 Notes	17,835	320,106
Total	2,032,138	1,214,770