Net income (loss) used for the purpose of determining basic and diluted net income (loss) per share is determined by taking net income (loss) attributable to PagerDuty, Inc., less the redeemable non-controlling interests redemption value adjustment.

The following table presents the calculation of basic and diluted net income (loss) attributable to PagerDuty, Inc. common stockholders for the periods indicated (in thousands, except number of shares and per share data):


	Three months ended April 30,
	2026		2025
Numerator:
Net income (loss) attributable to PagerDuty, Inc.	$	5,283	$	(7,162)
Less: Adjustment attributable to redeemable non-controlling interest	(4,963)		(665)
Net income (loss) attributable to PagerDuty, Inc. common stockholders	$	10,246	$	(6,497)
Denominator:
Weighted-average shares used in calculating net income (loss) per share:
Basic	78,647		91,374
Weighted average effect of potentially dilutive securities:
Stock options, RSUs, PSUs, and ESPP obligations	817		—
Diluted	79,464		91,374
Net income (loss) per share attributable to PagerDuty, Inc. common stockholders
Basic	$	0.13	$	(0.07)
Diluted	$	0.13	$	(0.07)

Since the Company was in a loss position for the three months ended April 30, 2025, basic net loss per share and diluted net loss per share are the same, as the inclusion of all potential common stock outstanding would have been anti-dilutive.

Potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive were as follows (in thousands):


	Three months ended April 30,
	2026	2025
Shares subject to outstanding common stock awards	8,111	13,835

Shares issuable pursuant to the ESPP	1,943	263
Total	10,054	14,098

As described in Note 9. Debt and Financing Arrangements, upon conversion of the 2028 Notes, the Company will pay cash up to the aggregate principal amount of the 2028 Notes to be converted and pay or deliver, as the case may be, cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election, in respect to the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the 2028 Notes being converted. As of April 30, 2026 and 2025, the conversion options of the 2028 Notes were out of the money and as a result, there were no potentially dilutive shares related to the conversion of the 2028 Notes.