Earnings Per Share

9 Months Ended

Jun. 30, 2025

3. Earnings Per Share

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted EPS is computed similarly to basic EPS except that the denominator is increased to include the number of additional common shares that would have been outstanding if potentially dilutive common shares had been issued. Dilutive potential common shares include outstanding restricted stock units (“RSUs”) and stock options. In the case of a net loss, diluted earnings per share is calculated in the same manner as basic EPS.

For the three and nine months ended June 30, 2025, options for 929,490 and 956,480 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. For the three and nine months ended June 30, 2024, options for 1,054,466 and 775,233 weighted average shares, respectively, were excluded from the diluted EPS calculations because they were anti-dilutive. These shares could become dilutive in the future.

A reconciliation of the components of the basic and diluted EPS calculations follows, in thousands, except per share amounts:


	Three Months Ended June 30,				Nine Months Ended June 30,
	2025		2024		2025			2024
Numerator:
Net income (loss)	$	106	$	438	$	(31,394	)	$	(7,950	)

Denominator:
Weighted-average shares used to compute basic EPS		14,314		14,209		14,294			14,198
Dilutive potential common shares due to stock options (1)		—		5		—			—
Dilutive potential common shares due to RSUs (1)		—		40		—			—
Weighted-average shares used to compute diluted EPS		14,314		14,254		14,294			14,198

Income (loss) per share:
Net income (loss) per basic share	$	0.01	$	0.03	$	(2.20	)	$	(0.56	)
Net income (loss) per diluted share	$	0.01	$	0.03	$	(2.20	)	$	(0.56	)

(1)

The number of common stock equivalents is calculated using the treasury method and the average market price during the period.