14. EARNINGS (LOSS) PER SHARE (EPS)

We present EPS using the two-class method. This method allocates undistributed earnings between common shares and non-vested share-based payment awards that entitle the holder to non-forfeitable dividend rights. Our participating securities are our non-vested restricted stock units.

The following table sets forth the computation of our basic and diluted EPS available to shareholders of common stock (excluding participating securities):
202520242023
(in millions, except per share data)
Numerator
Net income (loss)$(19.7)$35.0 $(33.6)
Less: Net income attributable to participating securities (1.2)— 
Net income (loss) attributable to common shareholders - Basic and Dilutive$(19.7)$33.8 $(33.6)
Denominators
Basic common shares outstanding -
Weighted-average shares outstanding123.6 121.7 120.3 
Less: Weighted-average participating securities(5.2)(4.2)(3.7)
Weighted-average common shares outstanding118.4 117.5 116.6 
Effect of dilutive securities -
Dilutive stock-based compensation 0.2 — 
Diluted shares outstanding -
Adjusted weighted-average shares after assumed conversions118.4 117.7 116.6 
Basic EPS$(0.17)$0.29 $(0.29)
Diluted EPS$(0.17)$0.29 $(0.29)

Basic and diluted loss per share are the same in 2025 and 2023 because the effect of potentially dilutive stock-based compensation would have been antidilutive. Excluded potentially dilutive shares were 0.2 million in 2025 and 0.3 million in 2023.
On February 3, 2026, in connection with the completion of the Business Combination, we issued approximately 117 million shares and increased our authorized shares from 150 million to 375 million shares.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2022Feb 17, 2023
2021Feb 11, 2022
2020Feb 12, 2021
2019Feb 14, 2020
2018Feb 15, 2019

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.