ARRAY DIGITAL INFRASTRUCTURE, INC.AD

ARRAY DIGITAL INFRASTRUCTURE, INC. Earnings Per Share Disclosure

10-KFiled Feb 20, 20262 min read
Note 5 Earnings Per Share
Basic earnings (loss) per share attributable to Array shareholders is computed by dividing Net income (loss) attributable to Array shareholders by the weighted average number of Common Shares outstanding during the period. Diluted earnings (loss) per share attributable to Array shareholders is computed by dividing Net income (loss) attributable to Array shareholders by the weighted average number of Common Shares outstanding during the period adjusted to include the effects of potentially dilutive securities. Potentially dilutive securities primarily include incremental shares issuable upon the exercise of outstanding stock options and the vesting of performance and restricted stock units, as calculated using the treasury stock method.
The amounts used in computing basic and diluted earnings (loss) per share attributable to Array shareholders were as follows:
Year Ended December 31,202520242023
(Dollars and shares in thousands, except per share amounts)   
Net income (loss) from continuing operations attributable to Array shareholders$169,652 $(85,875)$7,071 
Net income (loss) from discontinued operations attributable to Array shareholders(120,896)46,472 47,388 
Net income (loss) attributable to Array shareholders$48,756 $(39,403)$54,459 
Weighted average number of shares used in basic earnings (loss) per share85,908 85,633 85,185 
Effects of dilutive securities1,385 — 1,547 
Weighted average number of shares used in diluted earnings (loss) per share87,293 85,633 86,732 
Basic earnings (loss) per share from continuing operations attributable to Array shareholders$1.98 $(1.00)$0.08 
Basic earnings (loss) per share from discontinued operations attributable to Array shareholders(1.41)0.54 0.56 
Basic earnings (loss) per share attributable to Array shareholders$0.57 $(0.46)$0.64 
Diluted earnings (loss) per share from continuing operations attributable to Array shareholders$1.94 $(1.00)$0.08 
Diluted earnings (loss) per share from discontinued operations attributable to Array shareholders(1.38)0.54 0.55 
Diluted earnings (loss) per share attributable to Array shareholders$0.56 $(0.46)$0.63 
Certain Common Shares issuable upon the exercise of stock options or vesting of performance and restricted stock units were not included in weighted average diluted shares outstanding for the calculation of Diluted earnings (loss) per share attributable to Array shareholders because their effects were antidilutive. The number of such Common Shares excluded was 0.3 million, 2.6 million and 0.6 million in 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 16, 2024

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

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