Net Income (Loss) Per Share
In the calculation of basic net income per share, participating securities are allocated earnings based on actual dividend distributions received plus a proportionate share of undistributed net income, if any. We calculate basic net income per share under the two‑class method. Diluted net income (loss) per share is calculated under both the two-class method and the treasury stock method and the more dilutive of the two calculations is presented. The computation of diluted net income (loss) per share reflects the potential dilution that could occur if all outstanding awards under our LTIP were converted into shares of common stock or resulted in the issuance of shares of common stock that would then share in the earnings of the Company. During periods in which the Company realizes a loss from continuing operations securities would not be dilutive to net loss per share and conversion into shares of common stock is assumed not to occur.
Basic net income (loss) per share is computed as (i) net income (loss), (ii) less income allocable to participating securities (iii) divided by weighted average basic shares outstanding. The Company’s diluted net income (loss) per share is computed as (i) basic net income (loss), (ii) plus diluted adjustments to income allocable to participating securities (iii) divided by weighted average diluted shares outstanding.
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| | Years Ended |
| | December 31, |
| | 2024 | | 2023 | | 2022 |
| | (In thousands, except per share data) |
| Numerator: | | | | | |
| Net income allocable to common stockholders | $ | 189,851 | | | $ | 213,520 | | | $ | 226,551 | |
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| Denominator: | | | | | |
| Weighted average number of shares outstanding: | | | | | |
| Basic | 470,844 | | | 459,641 | | | 455,346 | |
| Restricted stock units(1) | 5,847 | | | 21,429 | | | 19,511 | |
| Diluted | 476,691 | | | 481,070 | | | 474,857 | |
| Net income per share: | | | | | |
| Basic | $ | 0.40 | | | $ | 0.46 | | | $ | 0.50 | |
| Diluted | $ | 0.40 | | | $ | 0.44 | | | $ | 0.48 | |
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(1)Our restricted stock units are not considered to be participating securities and, therefore, are excluded from the basic net income (loss) per share calculation.
(2)For the years ended December 31, 2024, 2023 and 2022, we excluded 3.3 million, 0.0 million and 0.1 million outstanding restricted stock units, respectively, from the computations of diluted net income per share because the effect would have been anti‑dilutive.
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.