IAC Inc.IAC
IAC Inc. Earnings Per Share Disclosure
NOTE 13—(LOSS) EARNINGS PER SHARE
The Company treats its common stock and Class B common stock as one class of stock for EPS purposes as both classes of stock participate in earnings, dividends and other distributions on the same basis.
On January 13, 2025, the 3.0 million restricted shares previously issued to our former CEO on November 5, 2020, which was a participating security, was forfeited by our former CEO pursuant to the Employment Transition Agreement. The Company calculated basic EPS using the two-class method prior to the restricted shares being forfeited because those restricted shares were unvested and had a non-forfeitable dividend right in the event the Company declared a cash dividend on its common shares and would have participated in all other distributions of the Company in the same manner as all other IAC common shares. Diluted EPS is calculated on the most dilutive basis, which excludes stock-based awards that would be anti-dilutive, including prior to its forfeiture the restricted shares previously granted to our former CEO.
Basic EPS is computed by dividing net earnings (loss) attributable to holders of IAC common stock and Class B common stock by the weighted-average number of shares of common stock and Class B common stock outstanding during the period. If more dilutive, while the restricted shares were outstanding, undistributed earnings allocated to the participating security was subtracted from earnings in determining earnings attributable to holders of IAC common stock and Class B common stock for basic EPS.
Diluted EPS is computed by dividing net earnings (loss) attributable to holders of IAC common stock and Class B common stock by the weighted-average number of common stock and Class B common stock outstanding plus dilutive securities during the period. If more dilutive, while the restricted shares were outstanding, diluted EPS was adjusted for the reallocation of undistributed earnings allocated to the participating security in determining earnings attributable to holders of IAC common stock and Class B common stock for diluted EPS.
The numerator and denominator of basic and diluted EPS computations for the Company’s common stock and Class B common stock are calculated as follows:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Basic EPS: | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net (loss) earnings from continuing operations | $ | (116,757) | $ | (573,168) | $ | 294,867 | |||||||||||
| Net (earnings) loss attributable to noncontrolling interests of continuing operations | (308) | (349) | 1,689 | ||||||||||||||
| Net earnings attributed to unvested participating security | — | — | (10,277) | ||||||||||||||
| Net (loss) earnings from continuing operations attributable to IAC common stock and Class B common stock shareholders | (117,065) | (573,517) | 286,279 | ||||||||||||||
| Earnings (loss) from discontinued operations, net of tax | 15,287 | 39,838 | (36,550) | ||||||||||||||
| Net (earnings) loss attributable to noncontrolling interests of discontinued operations | (2,248) | (6,218) | 5,936 | ||||||||||||||
| Net loss attributed to unvested participating security | — | — | 1,061 | ||||||||||||||
| Net earnings (loss) from discontinued operations attributable to IAC common stock and Class B common stock shareholders | 13,039 | 33,620 | (29,553) | ||||||||||||||
| Net (loss) earnings attributable to IAC common stock and Class B common stock shareholders | $ | (104,026) | $ | (539,897) | $ | 256,726 | |||||||||||
| Denominator: | |||||||||||||||||
Weighted average basic IAC common stock and Class B common stock shares outstanding | 80,077 | 83,130 | 83,569 | ||||||||||||||
| (Loss) Earnings per share: | |||||||||||||||||
| (Loss) earnings per share from continuing operations attributable to IAC common stock and Class B common stock shareholders | $ | (1.46) | $ | (6.89) | $ | 3.42 | |||||||||||
| Earnings (loss) per share from discontinued operations, net of tax, attributable to IAC common stock and Class B common stock shareholders | 0.16 | 0.40 | (0.35) | ||||||||||||||
| (Loss) earnings per share attributable to IAC common stock and Class B common stock shareholders | $ | (1.30) | $ | (6.49) | $ | 3.07 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||
| Diluted EPS: | |||||||||||||||||
| Numerator: | |||||||||||||||||
| Net (loss) earnings from continuing operations | $ | (116,757) | $ | (573,168) | $ | 294,867 | |||||||||||
| Net (earnings) loss attributable to noncontrolling interests of continuing operations | (308) | (349) | 1,689 | ||||||||||||||
| Net earnings attributed to unvested participating security | — | — | (9,944) | ||||||||||||||
| Net (loss) earnings from continuing operations attributable to IAC common stock and Class B common stock shareholders | (117,065) | (573,517) | 286,612 | ||||||||||||||
| Earnings (loss) from discontinued operations, net of tax | 15,287 | 39,838 | (36,550) | ||||||||||||||
| Net (earnings) loss attributable to noncontrolling interests of discontinued operations | (2,248) | (6,218) | 5,936 | ||||||||||||||
| Net loss attributed to unvested participating security | — | — | 1,026 | ||||||||||||||
| Net earnings (loss) from discontinued operations attributable to IAC common stock and Class B common stock shareholders | 13,039 | 33,620 | (29,588) | ||||||||||||||
| Net (loss) earnings attributable to IAC common stock and Class B common stock shareholders | $ | (104,026) | $ | (539,897) | $ | 257,024 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average basic IAC common stock and Class B common stock shares outstanding | 80,077 | 83,130 | 83,569 | ||||||||||||||
Dilutive securities(a)(b) | — | — | 2,895 | ||||||||||||||
Denominator for earnings per share—weighted average shares(a)(b) | 80,077 | 83,130 | 86,464 | ||||||||||||||
| (Loss) earnings per share: | |||||||||||||||||
| (Loss) earnings per share from continuing operations attributable to IAC common stock and Class B common stock shareholders | $ | (1.46) | $ | (6.89) | $ | 3.31 | |||||||||||
| Earnings (loss) per share from discontinued operations, net of tax, attributable to IAC common stock and Class B common stock shareholders | 0.16 | 0.40 | (0.34) | ||||||||||||||
| (Loss) earnings per share attributable to IAC common stock and Class B common stock shareholders | $ | (1.30) | $ | (6.49) | $ | 2.97 | |||||||||||
_____________________
(a) For the years ended December 31, 2025 and 2024, the Company had losses from continuing operations and, as a result, approximately 3.1 million and 8.5 million potentially dilutive securities, respectively, were excluded from computing diluted EPS for each of these periods because the impact would have been anti-dilutive. Accordingly, the weighted average basic shares outstanding were used to compute the EPS amounts.
(b) If the effect is dilutive, weighted average common shares outstanding include the incremental shares that would be issued upon the assumed exercise of stock options and subsidiary denominated equity; vesting of RSUs; and vesting of restricted common stock and PSUs, if applicable. For the year ended December 31, 2023, 3.6 million of potentially dilutive securities were excluded from the calculation of diluted EPS because their inclusion would have been anti-dilutive.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 29, 2024 | |
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.