Ardent Health, Inc.ARDT

Ardent Health, Inc. Earnings Per Share Disclosure

10-KFiled Mar 16, 20262 min read
Earnings Per Share
Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding. Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding plus the dilutive effect of outstanding securities, and such dilutive effect is computed using the treasury stock method.

For the purposes of determining the basic and diluted weighted-average number of common shares outstanding during the periods presented that are prior to the Corporate Conversion and ALH Contribution, the Company retrospectively reflected the effects of the Corporate Conversion and the ALH Contribution. As such, the basic and diluted weighted-average number of common shares outstanding for those periods reflect the conversion of the Company's membership units into common stock on the date of the Corporate Conversion and ALH Contribution, assuming that all common stock issued in conjunction with the Corporate Conversion and ALH Contribution was issued and outstanding as of the beginning of the earliest period presented.
The following table sets forth the computation of basic and diluted net income per share (in thousands, except share and per share amounts):

Years Ended December 31,
202520242023
Basic:
Net income attributable to common stockholders$135,811 $210,343 $53,904 
Weighted-average number of common shares140,760,736 132,439,695 126,115,301 
Net income per common share$0.96 $1.59 $0.43 
Diluted:
Net income attributable to common stockholders$135,811 $210,343 $53,904 
Weighted-average number of common shares141,450,309 132,744,577 126,115,301 
Net income per common share$0.96 $1.58 $0.43 

The following table sets forth the components of the denominator for the computation of basic and diluted net income per share for net income attributable to Ardent Health, Inc. stockholders:

Years Ended December 31,
202520242023
Weighted-average number of common shares - basic140,760,736132,439,695126,115,301
Effect of dilutive securities(1)
689,573304,882—
Weighted-average number of common shares - diluted141,450,309132,744,577126,115,301
(1)
The effect of dilutive securities does not reflect weighted-average potential common shares from restricted stock and restricted stock units of 1,531,526 and 183,566 for the years ended December 31, 2025 and 2024, respectively, because their effect was antidilutive as calculated under the treasury stock method.

Historical Timeline

Fiscal YearFiled
2025Mar 16, 2026Showing above
2024Feb 27, 2025

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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