Earnings Per Share
The Company calculates earnings per share under the two-class method. The two-class method is an earnings allocation formula that computes earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.
Basic earnings per share amounts have been computed as (i) net income (loss) (ii) less distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of basic shares outstanding for the periods presented. Diluted earnings per share amounts have been computed as (i) basic net income attributable to common stockholders (ii) plus the reallocation of distributed and undistributed earnings allocated to participating securities (iii) divided by the weighted average number of diluted shares outstanding for the periods presented. The Company calculates diluted earnings per share under both the two-class method and treasury stock method and reports the more dilutive of the two calculations.
The following table summarizes the basic and diluted earnings per share for the periods presented:
Year Ended December 31,
202520242023
 (In thousands, except per share data)
Net income$44,459 $848,627 $1,023,779 
Distributed and undistributed earnings allocated to participating securities(1,736)(3,437)(3,370)
Net income attributable to common stockholders (basic)42,723 845,190 1,020,409 
Reallocation of distributed and undistributed earnings allocated to participating securities— 24 76 
Net income attributable to common stockholders (diluted)$42,723 $845,214 $1,020,485 
Weighted average common shares outstanding:
Basic weighted average common shares outstanding57,812 51,796 41,490 
Dilutive effect of share-based awards
40 402 944 
Dilutive effect of warrants— 550 964 
Diluted weighted average common shares outstanding57,852 52,748 43,398 
Basic earnings per share$0.74 $16.32 $24.59 
Diluted earnings per share$0.74 $16.02 $23.51 
Anti-dilutive weighted average common shares:
Potential common shares721 1,646 3,709 

For the years ended December 31, 2025, 2024 and 2023, the diluted earnings per share calculation excludes the impact of unvested share-based awards and outstanding warrants that were anti-dilutive.

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2020Mar 8, 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.