EARNINGS PER SHARE
We calculate basic EPS by dividing net income attributable to Lithia Motors, Inc. by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted EPS is calculated by dividing net income attributable to Lithia Motors, Inc. by the weighted average number of shares outstanding, adjusted for the dilutive effect of unvested RSU awards and employee stock purchases.

The following is a reconciliation of net income attributable to Lithia Motors, Inc. and weighted average shares used for our basic EPS and diluted EPS:
Year Ended December 31,
($ in millions, except for per share amounts)
202520242023
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders$819.6 $796.7 $1,000.8 
Weighted average common shares outstanding – basic25.3 27.0 27.5 
Effect of employee stock purchases and restricted stock units on weighted average common shares0.1 0.1 0.1 
Weighted average common shares outstanding – diluted 25.4 27.1 27.6 
Basic earnings per share attributable to Lithia Motors, Inc.$32.38 $29.51 $36.36 
Diluted earnings per share attributable to Lithia Motors, Inc.$32.32 $29.45 $36.29 

The effects of antidilutive securities on common stock was evaluated for the years ended 2025, 2024, and 2023 and determined to be immaterial.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024
2022Feb 24, 2023

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.