EARNINGS PER SHARE
The following tables sets forth the computation of basic and diluted earnings per share: | | | | | | | | | | | | | | | | | |
| Years ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (In thousands, except share data) |
| Basic earnings per share: | | | | | |
| Net income | $ | 193,116 | | | $ | 140,191 | | | $ | 74,223 | |
| Allocation of net income to common stockholders: | | | | | |
| Common stock | $ | 193,116 | | | $ | 140,191 | | | $ | 74,049 | |
| Unvested participating shares | — | | | — | | | 174 | |
| Net income | $ | 193,116 | | | $ | 140,191 | | | $ | 74,223 | |
| | | | | |
| Weighted average common shares outstanding: | | | | | |
| Common stock | 56,945,743 | | | 57,931,572 | | | 57,717,102 | |
| Unvested participating shares | — | | | 54,476 | | | 145,813 | |
| Earnings per common share: | | | | | |
| Common stock | $ | 3.39 | | | $ | 2.42 | | | $ | 1.28 | |
| | | | | | | | | | | | | | | | | |
| Years ended December 31, |
| 2025 | | 2024 | | 2023 |
| | | | | |
| (In thousands, except share data) |
| Diluted earnings per share: | | | | | |
| Earnings allocated to common stock | $ | 193,116 | | | $ | 140,191 | | | $ | 74,049 | |
| Plus: earnings allocated to unvested participating shares | — | | | — | | | 174 | |
| Less: adjusted earnings allocated to unvested participating shares | — | | | — | | | (174) | |
| Earnings allocated to common stock | $ | 193,116 | | | $ | 140,191 | | | $ | 74,049 | |
| | | | | |
| Weighted average common shares outstanding: | | | | | |
| Common stock | 56,945,743 | | | 57,931,572 | | | 57,717,102 | |
| Effect of dilutive securities | 476,758 | | | 539,994 | | | 215,472 | |
| Weighted average common shares outstanding — diluted | 57,422,501 | | | 58,471,566 | | | 57,932,574 | |
| Earnings per common share: | | | | | |
| Common stock | $ | 3.36 | | | $ | 2.40 | | | $ | 1.28 | |
For the years ended December 31, 2025 and 2024, basic and diluted earnings per share were calculated using the treasury method and for the year ended December 31, 2023, basic and diluted earnings per share were calculated using the two-class method. Equity awards outstanding to purchase or receive 1.1 million, 1.3 million, and 1.8 million shares of common stock were excluded from diluted earnings per share for the years ended December 31, 2025, 2024, and 2023, respectively, since their effect was anti-dilutive. These equity awards may become dilutive in the future.
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.