NET INCOME PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. The denominator used in calculating diluted net income (loss) per common share further includes any common shares available to be issued upon vesting or exercise of outstanding equity-based compensation awards if such inclusion would be dilutive, calculated using the treasury stock method, and any common shares to be issued upon conversion of the Convertible Notes if such inclusion would be dilutive, calculated using the if-converted method.

The computation of basic and diluted net income per common share was as follows (dollars in thousands, except per share amounts):


	Year Ended December 31,
	2025(1)		2024(2)		2023
Numerator:
Net income (loss) - basic	$	(356,459)	$	14,480	$	224,622
Add: Convertible Notes interest expense, net of tax	—		—		6,215
Net income (loss) - diluted	$	(356,459)	$	14,480	$	230,837

Denominator:
Weighted average common shares outstanding - basic	5,639,714		5,621,408		5,648,934
Effect of dilutive equity-based compensation awards(3)	—		10,091		9,149
Effect of dilution from if-converted Convertible Notes(4)	—		—		404,248
Weighted average common shares outstanding - diluted	5,639,714		5,631,499		6,062,331

Net Income (Loss) per Common Share:
Basic	$	(63.21)	$	2.58	$	39.76
Diluted	$	(63.21)	$	2.57	$	38.08

Supplemental Net Income (Loss) per Common Share Disclosure:
Anti-dilutive shares from equity-based compensation awards(3)	70,621		78,508		23,566

(1)Because the Company incurred a net loss for 2025 (primarily due to asset impairments recognized during the second quarter of 2025), diluted net loss per common share is equal to basic net loss per common share for the period. Therefore, no adjustments are shown to the numerator or denominator within the table.

(2)During 2025, the Company identified an immaterial error in its diluted net income per common share calculation for the year ended December 31, 2024. The if-converted method for the Convertible Notes was incorrectly applied during the period, as its effect was anti-dilutive. Diluted earnings per share for the year ended December 31, 2024 should have been $2.57 (as shown above) instead of $3.43 as reported. No other periods were impacted.

(3)Equity-based compensation awards whose impact is considered to be anti-dilutive under the treasury stock method were excluded from the diluted net income per common share calculation.

(4)Based on a conversion rate of 0.4394 shares of common stock per weighted $1,000 principal amount of Convertible Notes outstanding for 2023.

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.

Cable One, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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