Alpha Metallurgical Resources, Inc.AMR

Alpha Metallurgical Resources, Inc. Earnings Per Share Disclosure

10-KFiled Feb 27, 20262 min read
Net (Loss) Income Per Share
The number of shares of common stock used to calculate basic net (loss) income per common share is based on the weighted average number of the Company’s outstanding common shares during the respective period. The number of shares of common stock used to calculate diluted net (loss) income per common share is based on the number of common shares used to calculate basic net (loss) income per common share plus the effect of potentially dilutive securities outstanding during the period, which is determined by the application of the treasury stock method. 

When applying the treasury stock method, anti-dilution generally occurs when the exercise prices or unrecognized compensation cost per share of common stock are higher than the Company’s average price per share of common stock during an applicable period. For the years ended December 31, 2025, 2024, and 2023, respectively, 0, 159, and 1,240 securities were excluded from the computation of dilutive net income per common share because they would have been anti-dilutive.

Anti-dilution also occurs in periods of a net loss, and the dilutive impact of all share-based compensation awards are excluded. For the year ended December 31, 2025, the weighted average share impact of securities excluded from the shares due to the Company incurring a net loss for the period was 36,761.

The following table presents the net (loss) income per common share for the years ended December 31, 2025, 2024, and 2023:

Year Ended December 31,
202520242023
Basic
Net (loss) income$(61,687)$187,579 $721,956 
Weighted average common shares outstanding - basic12,996,148 13,013,469 14,106,466 
Net (loss) income per common share - basic$(4.75)$14.41 $51.18 
Diluted
Weighted average common shares outstanding - basic12,996,148 13,013,469 14,106,466 
Diluted effect of warrants— — 81,352 
Diluted effect of stock options— — 1,400 
Diluted effect of other stock-based instruments— 121,337 453,638 
Weighted average common shares outstanding - diluted12,996,148 13,134,806 14,642,856 
Net (loss) income per common share - diluted$(4.75)$14.28 $49.30 

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.

Other Available Disclosures

Income TaxesRevenueFair ValuePP&ELeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance