Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to Baldwin by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share is computed giving effect to all potentially dilutive shares of common stock.
The following table sets forth the computation of basic and diluted loss per share:
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| | For the Years Ended December 31, |
| (in thousands, except per share data) | | 2025 | | 2024 | | 2023 |
| Basic and diluted loss per share: | | | | | | |
| Loss attributable to Baldwin | | $ | (33,813) | | | $ | (24,518) | | | $ | (90,141) | |
| Shares used for basic and diluted loss per share: | | | | | | |
| Basic and diluted weighted-average shares of Class A common stock outstanding | | 67,939 | | | 63,455 | | | 60,135 | |
| Basic and diluted loss per share | | $ | (0.50) | | | $ | (0.39) | | | $ | (1.50) | |
Potentially dilutive securities consist of unvested stock awards, including RSAs and PSUs, in addition to shares of Class B common stock, which can be exchanged (together with a corresponding number of LLC Units) for shares of Class A common stock on a one-for-one basis. The following potentially dilutive securities were excluded from the Company's diluted weighted-average number of shares outstanding calculation for the periods presented as their inclusion would have been anti-dilutive.
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| | For the Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Unvested RSAs and PSUs | | 3,229,248 | | | 3,597,954 | | | 3,874,639 | |
| Shares of Class B common stock | | 47,736,698 | | | 50,895,956 | | | 53,132,031 | |
The shares of Class B common stock do not share in the earnings or losses attributable to Baldwin, and therefore, are not participating securities. Accordingly, a separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been included.
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.