DONEGAL GROUP INCDGICA

DONEGAL GROUP INC Earnings Per Share Disclosure

10-KFiled Mar 6, 20262 min read
16 - Earnings Per Share

We have two classes of common stock, which we refer to as Class A common stock and Class B common stock. Our Class A common stock is entitled to be paid cash dividends that are at least 10% higher than the cash dividends we pay on our Class B common stock. Accordingly, we use the two-class method for the computation of earnings per common share. The two-class method is an earnings allocation formula that determines earnings per share separately for each class of common stock based on dividends declared and an allocation of remaining undistributed earnings using a participation percentage reflecting the dividend rights of each class.

We present below a reconciliation of the numerators and denominators we used in the basic and diluted per share computations for our Class A common stock:
 
   
Year Ended December 31,
  
(in thousands)
  
2025
    
2024
    
2023
  
Basic earnings per share:
                  
Numerator:
                  
Allocation of net income
  
$
68,150
    
$
43,178
    
$
3,788
  
Denominator:
                        
Weighted-average shares outstanding
    
30,744
      
28,155
      
27,469
  
Basic earnings per share
  
$
2.22
    
$
1.53
    
$
0.14
  
Diluted earnings per share:
                        
Numerator:
                        
Allocation of net income
  
$
68,150
    
$
43,178
    
$
3,788
  
Denominator:
                        
Number of shares used in basic computation
    
30,744
      
28,155
      
27,469
  
Weighted-average effect of dilutive securities
                        
Add: Director and employee stock options
    
502
      
91
      
94
  
Number of shares used in per share computations
    
31,246
      
28,246
      
27,563
  
Diluted earnings per share
  
$
2.18
    
$
1.53
    
$
0.14
  

We used the following information in the basic and diluted per share computations for our Class B common stock:
 
   
Year Ended December 31,
  
(in thousands)
  
2025
    
2024
    
2023
  
Basic and diluted earnings per share:
                  
Numerator:
                  
Allocation of net income
  
$
11,191
    
$
7,684
    
$
638
  
Denominator:
                        
Weighted-average shares outstanding
    
5,577
      
5,577
      
5,577
  
Basic and diluted earnings per share
  
$
2.01
    
$
1.38
    
$
0.11
  

Historical Timeline

Fiscal YearFiled
2025Mar 6, 2026Showing above
2024Mar 10, 2025
2023Mar 6, 2024
2022Mar 6, 2023
2021Mar 7, 2022
2020Mar 5, 2021
2019Mar 6, 2020
2018Mar 14, 2019
2017Mar 9, 2018
2016Mar 10, 2017
2015Mar 18, 2016

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.

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