Basic earnings (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted earnings (loss) per common share is calculated in the same manner but includes the impact of potentially dilutive securities utilizing the treasury stock method. Potentially dilutive securities consists of issuable shares related to warrants, unvested restricted stock units (“RSUs”), and unvested performance share units (“PSUs”).
The reconciliations between basic and diluted earnings (loss) per share are as follows:
| | | | | | | | | | | | | | | | | | | | |
| | Years Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator | | | | | | |
| Net income (loss) available to common stockholders, basic and diluted | | $ | 1,819 | | | $ | (714) | | | $ | 2,419 | |
| | | | | | |
| Denominator (in thousands) | | | | | | |
| Weighted average common shares outstanding, basic | | 237,290 | | | 156,989 | | | 132,840 | |
| Effect of potentially dilutive securities | | | | | | |
| Warrants | | 2,670 | | | — | | | 9,750 | |
| Restricted stock units | | 372 | | | — | | | 338 | |
| Performance share units | | 38 | | | — | | | 48 | |
| Weighted average common shares outstanding, diluted | | 240,370 | | | 156,989 | | | 142,976 | |
| | | | | | |
| Earnings per common share: | | | | | | |
| Basic | | $ | 7.67 | | | $ | (4.55) | | | $ | 18.21 | |
| Diluted | | $ | 7.57 | | | $ | (4.55) | | | $ | 16.92 | |
During the years ended December 31, 2025, 2024 and 2023, the diluted earnings (loss) per share calculation excludes the effect of 13,391, 308,646 and 777,369 reserved shares of common stock and 25,015, 582,109 and 1,466,502 reserved Class C Warrants related to the settlement of General Unsecured Claims associated with the Chapter 11 Cases, as all necessary conditions had not been met for such shares to be considered dilutive shares during the years ended December 31, 2025, 2024 and 2023, respectively. Additionally, the diluted loss per share calculation during the year ended December 31, 2024 excludes the antidilutive effect of 9,058,361 Warrants, 315,318 RSUs and 86,421 PSUs.
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.