NET INCOME (LOSS) PER SHARE OF COMMON STOCK
The Company is required to utilize the “two-class” method of computing basic and diluted net income per share because the Company issued certain PIPRs, including certain P-PIPRs, which are treated as participating securities.
The Company’s basic and diluted net income (loss) per share calculations using the “two-class” method for the years ended December 31, 2025, 2024, and 2023 are presented below:
Year Ended December 31,
202520242023
Net income (loss) attributable to Lazard $236,831 $279,912 $(75,479)
Adjustment for earnings attributable to participating securities
(5,921)(6,886)(4,440)
Net income (loss) attributable to Lazard - basic230,910 273,026 (79,919)
Adjustment for earnings attributable to participating securities
– 1,233 – 
Net income (loss) attributable to Lazard - diluted$230,910 $274,259 $(79,919)
Weighted average number of shares of common stock outstanding
93,650,22489,858,73086,751,822
Weighted average number of shares of common stock issuable on a non-contingent basis
3,828,8683,280,6222,242,163
Weighted average number of shares of common stock outstanding - basic
97,479,09293,139,35288,993,985
Weighted average number of incremental shares of common stock issuable from share-based incentive compensation (a)
8,858,9879,252,819 
Weighted average number of shares of common stock outstanding - diluted
106,338,079102,392,17188,993,985
Net income (loss) attributable to Lazard per share of common stock:
Basic$2.37 $2.93 $(0.90)
Diluted$2.17 $2.68 $(0.90)
_____________________

(a)The aggregate weighted average number of incremental shares of common stock issuable from PIPRs for the years ended December 31, 2025 and 2024 of 2,118,162 and 1,463,646, respectively, and from RSUs, PRSUs and PIPRs for the year ended December 31, 2023 of 4,779,627, that could be potentially dilutive in future periods, have been excluded from the computation of diluted net income (loss) per share as the effect would be antidilutive in the respective periods.

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 24, 2025
2023Feb 23, 2024
2022Feb 23, 2023
2021Feb 28, 2022

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.