FTI CONSULTING, INC Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator — basic and diluted | |||||||||||||||||
| Net income | $ | 270,871 | $ | 280,088 | $ | 274,892 | |||||||||||
| Denominator | |||||||||||||||||
| Weighted average number of common shares outstanding — basic | 32,531 | 35,208 | 33,924 | ||||||||||||||
| Effect of dilutive share-based awards | 318 | 517 | 559 | ||||||||||||||
| Effect of dilutive stock options | 32 | 120 | 295 | ||||||||||||||
Effect of dilutive convertible notes (1) | — | — | 868 | ||||||||||||||
| Weighted average number of common shares outstanding — diluted | 32,881 | 35,845 | 35,646 | ||||||||||||||
| Earnings per common share — basic | $ | 8.33 | $ | 7.96 | $ | 8.10 | |||||||||||
| Earnings per common share — diluted | $ | 8.24 | $ | 7.81 | $ | 7.71 | |||||||||||
| Antidilutive stock options and share-based awards | 217 | 45 | 5 | ||||||||||||||
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.