DiamondRock Hospitality Co Earnings Per Share Disclosure
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income attributable to common stockholders (in thousands) | $ | 91,616 | $ | 38,230 | $ | 76,523 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted-average number of common shares outstanding—basic | 206,226,487 | 210,286,342 | 211,518,826 | ||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||
| Unvested restricted common stock | 221,609 | 152,158 | 340,981 | ||||||||||||||
| Shares related to unvested PSUs | 1,816,434 | 801,670 | 444,310 | ||||||||||||||
| Weighted-average number of common shares outstanding—diluted | 208,264,530 | 211,240,170 | 212,304,117 | ||||||||||||||
| Earnings per share: | |||||||||||||||||
| Earnings per share available to common stockholders—basic | $ | 0.44 | $ | 0.18 | $ | 0.36 | |||||||||||
| Earnings per share available to common stockholders—diluted | $ | 0.44 | $ | 0.18 | $ | 0.36 | |||||||||||
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.