Lumen Technologies, Inc. Earnings Per Share Disclosure
| Years Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (Dollars in millions, except per share amounts, shares in thousands) | |||||||||||||||||
| Loss (numerator) | |||||||||||||||||
| Net loss | $ | (1,739) | (55) | (10,298) | |||||||||||||
| Net loss applicable to common stock for computing basic loss per share of common stock | (1,739) | (55) | (10,298) | ||||||||||||||
| Net loss as adjusted for purposes of computing diluted loss per share of common stock | $ | (1,739) | (55) | (10,298) | |||||||||||||
| Shares (denominator): | |||||||||||||||||
| Weighted-average number of shares: | |||||||||||||||||
| Outstanding during period | 1,024,193 | 1,014,554 | 1,006,787 | ||||||||||||||
| Non-vested restricted stock | (29,645) | (26,874) | (23,706) | ||||||||||||||
| Weighted average shares outstanding for computing basic loss per share of common stock | 994,548 | 987,680 | 983,081 | ||||||||||||||
| Incremental common shares attributable to dilutive securities: | |||||||||||||||||
| Shares issuable under convertible securities | — | — | — | ||||||||||||||
| Shares issuable under incentive compensation plans | — | — | — | ||||||||||||||
| Number of shares as adjusted for purposes of computing diluted loss per share of common stock | 994,548 | 987,680 | 983,081 | ||||||||||||||
| Basic loss per share of common stock | $ | (1.75) | (0.06) | (10.48) | |||||||||||||
Diluted loss per common share(1) | $ | (1.75) | (0.06) | (10.48) | |||||||||||||
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.