Basic and Diluted Net Income per Share

Basic net income per share has been computed by dividing net income attributable to common shareholders by the weighted average number of shares of common stock outstanding for the same period. Shares issued during the period and shares reacquired during the period are weighted for the portion of the period in which the shares were outstanding. Diluted net income per share has been computed in a manner consistent with that of basic net income per share while giving effect to all shares of potentially dilutive common stock that were outstanding during the period. The following table presents the calculation of basic and diluted net income per share under the two-class method.


	Year Ended December 31,
	2025		2024		2023
Net income	$	147	$	295	$	123
Less: Net income attributable to non-redeemable noncontrolling interests	(28)		(65)		(37)
Less: Dividends on Preferred Stock and redeemable noncontrolling interests	(40)		—		—
Adjustment to net income attributable to common stockholders	(1)		(2)		—
Net income attributable to common stockholders - basic	78		228		86
Reallocation of net income from non-redeemable noncontrolling interests to common stockholders due to effect of dilutive securities	18		50		1
Net income attributable to common stockholders - diluted	$	96	$	278	$	87

Numerator - allocation of net income attributable to common stockholders:
Net income allocated to Class A common stock - basic	$	76	$	222	$	83
Reallocation of net income from non-redeemable noncontrolling interests to common stockholders due to effect of dilutive securities	18		51		1
Net income allocated to Class A common stock - diluted	$	94	$	273	$	84

Net income allocated to Class C common stock - basic	$	2	$	6	$	3
Reallocation of net income from non-redeemable noncontrolling interests to common stockholders due to effect of dilutive securities	—		(1)		—
Net income allocated to Class C common stock - diluted	$	2	$	5	$	3

Denominator:
Weighted average shares of Class A common stock outstanding - basic (a)	66,726,911		66,009,448		57,738,871
Effect of dilutive securities:
LLC Interests (b)	19,801,028		22,160,725		—
RSUs	1,092,719		1,684,179		1,112,793

Contingent shares	—		—		196,686
Weighted average shares of Class A common stock outstanding - diluted	87,620,658		89,854,352		59,048,350

Weighted average shares of Class C common stock outstanding - basic and diluted	1,333,686		1,668,826		1,942,054

Net income per share - Basic:
Class A common stock	$	1.15	$	3.36	$	1.45
Class C common stock	$	1.15	$	3.36	$	1.45
Net income per share - Diluted:
Class A common stock	$	1.08	$	3.03	$	1.43
Class C common stock	$	1.08	$	3.03	$	1.43

(a) The year ended December 31, 2023 included 3,741,398 shares that had been committed but not issued as of December 31, 2023. Committed but not issued shares as of December 31, 2023 primarily relate to the acquisition of Finaro.

(b) For the year ended December 31, 2023, 24,256,531 LLC Interests were excluded from the calculation of diluted net income per share as the effect would be anti-dilutive.

Diluted EPS was computed using the treasury stock method for RSUs and the if-converted method for convertible instruments.

The Company has excluded from the calculation of diluted net income per share the effect of the following:

•the conversion of the Preferred Stock in 2025, as the effect would be anti-dilutive;

•the conversion of the 2025 Convertible Notes and 2027 Convertible Notes, as the effect would be anti-dilutive; and

•shares of the Company’s Class A common stock to be issued in connection with certain earnouts, for the period prior to the issuance of such shares.

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.

Shift4 Payments, Inc. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

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