Bowhead Specialty Holdings Inc. Earnings Per Share Disclosure
| Years Ended December 31, | 2025 | 2024 | 2023 | |||||||||||||||||
| ($ in thousands, except share and per share data) | ||||||||||||||||||||
| Numerator | ||||||||||||||||||||
| Net income | $ | 53,786 | $ | 38,243 | $ | 25,047 | ||||||||||||||
| Denominator | ||||||||||||||||||||
| Basic weighted average shares outstanding | 32,737,932 | 29,261,209 | 24,000,000 | |||||||||||||||||
Effect of dilutive awards(1) | ||||||||||||||||||||
| Restricted stock units | 448,251 | 219,417 | — | |||||||||||||||||
| Performance stock units | 130,278 | 68,791 | — | |||||||||||||||||
| Warrants | 419,483 | 127,779 | — | |||||||||||||||||
Diluted weighted average shares outstanding | 33,735,944 | 29,677,196 | 24,000,000 | |||||||||||||||||
| Earnings per share | ||||||||||||||||||||
| Basic | $ | 1.64 | $ | 1.31 | $ | 1.04 | ||||||||||||||
| Diluted | $ | 1.59 | $ | 1.29 | $ | 1.04 | ||||||||||||||
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.