MOLINA HEALTHCARE, INC.MOH

MOLINA HEALTHCARE, INC. Earnings Per Share Disclosure

10-KFiled Feb 10, 20261 min read
Net Income Per Share
The following table sets forth the calculation of basic and diluted net income per share:
Year Ended December 31,
202520242023
(In millions, except net income per share)
Numerator:
Net income$472 $1,179 $1,091 
Denominator:
Shares outstanding at the beginning of the period55.0 57.8 57.4 
Weighted-average number of shares issued:
Stock purchases(2.4)(0.6)— 
Stock-based compensation0.2 0.2 0.3 
Denominator for basic net income per share52.8 57.4 57.7 
Effect of dilutive securities: (1)
Stock-based compensation0.1 0.3 0.4 
Denominator for diluted net income per share52.9 57.7 58.1 
Net income per share - Basic (2)
$8.93 $20.52 $18.91 
Net income per share - Diluted (2)
$8.92 $20.42 $18.77 
_______________________________ 
(1)    The dilutive effect of all potentially dilutive common shares is calculated using the treasury stock method. Certain potentially dilutive common shares issuable are not included in the computation of diluted net income per share because to do so would have been anti-dilutive. For the years ended December 31, 2025 and 2024, 358,000 and 108,000 shares, respectively, were excluded from diluted shares outstanding.
(2)    Source data for calculations in thousands.

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.

Other Available Disclosures

Income TaxesFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance