Net Income Per Share

The Company computes net income per share using the two-class method required for multiple classes of common stock and participating securities. The rights, including the liquidation and dividend rights, of the Class A common stock and Class B common stock are substantially identical, other than voting rights. Accordingly, the Class A common stock and Class B common stock share equally in the Company’s net income and losses.

Basic net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of shares of the Class A and Class B common stock outstanding.

Diluted net income per share is computed by dividing net income attributable to common stockholders by the weighted-average number of diluted common shares outstanding. The computation of the diluted net income per share of Class A common stock assumes the conversion of the Company's Class B common stock to Class A common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares to Class A common stock. The dilutive effect of potentially dilutive common shares is reflected in diluted earnings per share by application of the if-converted method for the 2026 Notes and the 2028 Notes, and by application of the treasury stock method for the Company's other potentially dilutive securities.

The numerators and denominators of the basic and diluted EPS computations for the Company's common stock are calculated as follows (in millions, except for per share amounts):


	Year Ended December 31,
	2025				2024				2023
	Class A		Class B		Class A		Class B		Class A		Class B
Basic net income per share:
Numerator
Net income attributable to common stockholders	$	363.4	$	145.0	$	339.3	$	113.0	$	345.7	$	107.9
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	191.8		76.5		238.7		79.5		260.1		81.1
Net income per common share, basic	$	1.89	$	1.89	$	1.42	$	1.42	$	1.33	$	1.33
Diluted net income per share:
Numerator
Net income attributable to common stockholders	$	363.4	$	145.0	$	339.3	$	113.0	$	345.7	$	107.9
Reallocation of net income as a result of conversion of Class B to Class A common stock	145.0		—		113.0		—		107.9		—
Reallocation of net income to Class B common stock	—		(2.4)		—		(1.7)		—		(1.4)
Net income attributable to common stockholders for diluted EPS	$	508.4	$	142.6	$	452.3	$	111.3	$	453.6	$	106.5
Denominator
Weighted-average number of common shares outstanding used in computing basic net income per share	191.8		76.5		238.7		79.5		260.1		81.1
Weighted-average effect of dilutive restricted stock units and awards and employee stock options	4.5		—		5.2		—		4.4		—
Conversion of Class B to Class A common stock	76.5		—		79.5		—		81.1		—
Weighted-average number of common shares outstanding used in computing diluted net income per share	272.8		76.5		323.4		79.5		345.6		81.1
Net income per common share, diluted	$	1.86	$	1.86	$	1.40	$	1.40	$	1.31	$	1.31

The weighted-average impact of potentially dilutive securities that were not included in the diluted per share calculations because they would be anti-dilutive was as follows:


	Year Ended December 31,
		2025	2024	2023
Restricted stock units and awards		3.0	4.0	6.9

Co-Founder Grant		8.3	8.3	8.3
Convertible Senior Notes		37.8	37.8	37.8
Warrants		37.8	37.8	37.8
Total		86.9	87.9	90.8

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.

DROPBOX, INC. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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