Brighthouse Financial, Inc.BHF

Brighthouse Financial, Inc. Earnings Per Share Disclosure

10-KFiled Feb 24, 20261 min read
16. Earnings Per Common Share
The calculation of earnings per common share was as follows:
Years Ended December 31,
2025
2024
2023
(In millions, except share and per share data)
Net income (loss) available to Brighthouse Financial, Inc.’s common shareholders
$
331 
$
286 
$
(1,214)
Weighted average common shares outstanding — basic
57,526,188 
61,199,247 
66,013,645 
Dilutive effect of share-based awards
413,591 
401,135 
— 
Weighted average common shares outstanding — diluted
57,939,779 
61,600,382 
66,013,645 
Earnings per common share:
Basic
$
5.75 
$
4.67 
$
(18.39)
Diluted
$
5.71 
$
4.64 
$
(18.39)
The dilutive effect of share-based awards is calculated using the treasury stock method, which assumes that the proceeds from the exercise of these instruments are used to repurchase shares of common stock at the average market price during the period. See Note 12 for further information on share-based compensation plans.
For the year ended December 31, 2024, weighted average shares used for calculating diluted earnings per common share excludes 187,371 shares underlying out-of-the-money stock options, as the inclusion of such shares would be antidilutive under the treasury stock method to earnings per common share. For the year ended December 31, 2023, basic loss per common share equaled diluted loss per common share. Dilutive shares and diluted earnings per share are not applicable when a net loss is reported.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 28, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 24, 2022
2020Feb 24, 2021

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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