# Diluted EPS

*Accounting & Reporting — Finicade finance glossary*

Diluted EPS assumes every option, convertible and unvested share award turns into stock, spreading earnings across the larger count. It's the conservative and more honest figure, especially for companies paying heavily in equity, where the gap to basic EPS can exceed 10%. Loss-making companies report basic and diluted as equal, since dilution would reduce the loss per share and is therefore excluded.

**Also known as:** diluted earnings per share, fully diluted EPS

**Related terms:** [EPS (Earnings Per Share)](https://finicade.com/glossary/eps), [Dilution](https://finicade.com/glossary/dilution), [Restricted Stock Units (RSUs)](https://finicade.com/glossary/restricted-stock-units), [Convertible Bond](https://finicade.com/glossary/convertible-bond), [Treasury Stock](https://finicade.com/glossary/treasury-stock)

Source: https://finicade.com/glossary/diluted-eps