COMPUTATION OF NET INCOME PER COMMON SHARE
Basic net income per share is computed by dividing income from operations attributable to stockholders of The Ensign Group, Inc. by the weighted average number of outstanding common shares for the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.
A reconciliation of the numerator and denominator used in the calculation of basic net income per common share follows:
Year Ended December 31,
 202520242023
NUMERATOR:
Net income$344,264 $298,458 $209,850 
Less: net income attributable to noncontrolling interests 293 485 451 
Net income attributable to The Ensign Group, Inc. $343,971 $297,973 $209,399 
DENOMINATOR:
Weighted average shares outstanding
57,306 56,655 55,708 
Basic net income per common share:$6.00 $5.26 $3.76 

A reconciliation of the numerator and denominator used in the calculation of diluted net income per common share follows:
Year Ended December 31,
 202520242023
NUMERATOR:
Net income $344,264 $298,458 $209,850 
Less: net income attributable to noncontrolling interests293 485 451 
Net income attributable to The Ensign Group, Inc. $343,971 $297,973 $209,399 
DENOMINATOR:
Weighted average common shares outstanding57,306 56,655 55,708 
Plus: incremental shares from assumed conversion (1)
1,567 1,585 1,615 
Adjusted weighted average common shares outstanding58,873 58,240 57,323 
Diluted net income per common share:$5.84 $5.12 $3.65 
(1) Options outstanding which are anti-dilutive and therefore not factored into the weighted average common shares amount above were 1,006, 914 and 1,429 for the years ended December 31, 2025, 2024 and 2023, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 4, 2026Showing above
2024Feb 5, 2025
2022Feb 2, 2023

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.