Accelerant HoldingsARX

Accelerant Holdings Earnings Per Share Disclosure

10-KFiled Mar 18, 20262 min read
22. Earnings per share
The following table sets forth the computation of basic and diluted net earnings per common share:
Years Ended December 31,
(in millions, except share and per share data)202520242023
Numerator:
Net (loss) income$(1,345.2)$22.9 $(64.1)
Adjustment for net (income) loss attributable to non-controlling interests(8.9)4.3 15.3 
Less: Deemed dividend for Class C preference shares redemption (1)
(70.9)— — 
Net (loss) income attributable to Accelerant common shareholders$(1,425.0)$27.2 $(48.8)
Denominator:
Weighted-average common shares outstanding - basic190,260,158 165,982,094 165,604,641 
Effect of dilutive securities:
Dilutive common shares (2)
— 33,681,600 — 
Weighted-average common shares outstanding - diluted190,260,158 199,663,694 165,604,641 
Net (loss) income attributable to Accelerant per common share:
Basic $(7.49)$0.16 $(0.29)
Diluted$(7.49)$0.14 $(0.29)
(1) The difference in redemption value from carrying value is reflected as a deemed dividend and an increase of the Class C preference shares, as well as a corresponding reduction to additional paid in capital and earnings per share.
(2) Potential dilutive common shares consist of all of our convertible preference shares and certain of our share-based compensation options and RSUs described in Note 21. During a period of loss, the basic weighted average ordinary shares outstanding is used in the denominator of the diluted loss per ordinary share computation as the effect of including potentially dilutive securities would be anti-dilutive. The potential common shares excluded from the calculation of potential diluted shares outstanding were 1,273,669 shares, 15,016,572 shares and 42,089,249 shares for the years ended December 31, 2025, 2024 and 2023, respectively.

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

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