Note 12. Earnings Per Share
The computation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 were as follows: | | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| Basic and Diluted Earnings Per Share | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net income attributable to APAM | $ | 290,320 | | | $ | 259,748 | | | $ | 222,289 | |
| Less: Allocation to participating securities | 24,447 | | | 22,303 | | | 19,880 | |
| Net income available to common stockholders | $ | 265,873 | | | $ | 237,445 | | | $ | 202,409 | |
| Denominator: | | | | | |
| Basic weighted average shares outstanding | 65,603,942 | | | 64,900,228 | | | 63,451,932 | |
| Dilutive effect of nonparticipating equity awards | — | | | 38,955 | | | 34,547 | |
| Diluted weighted average shares outstanding | 65,603,942 | | | 64,939,183 | | | 63,486,479 | |
| Earnings per share - Basic | $ | 4.05 | | | $ | 3.66 | | | $ | 3.19 | |
| Earnings per share - Diluted | $ | 4.05 | | | $ | 3.66 | | | $ | 3.19 | |
Allocation to participating securities in the table above primarily represents dividends paid to holders of unvested restricted share-based awards, which reduces net income available to common stockholders.
The Holdings limited partnership units are anti-dilutive primarily due to the impact of public company expenses. Unvested restricted share-based awards with non-forfeitable dividend rights during the vesting period are considered participating securities and are therefore anti-dilutive.
The following table summarizes the weighted-average shares outstanding that are excluded from the calculation of diluted earnings per share because their effect would have been anti-dilutive: | | | | | | | | | | | | | | | | | |
| For the Years Ended December 31, |
| Anti-Dilutive Weighted Average Shares Outstanding | 2025 | | 2024 | | 2023 |
| Holdings limited partnership units | 10,242,140 | | | 10,502,502 | | | 11,505,766 | |
| Unvested restricted share-based awards | 5,342,633 | | | 5,476,324 | | | 5,572,690 | |
| Total | 15,584,773 | | | 15,978,826 | | | 17,078,456 | |
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.