16. NET INCOME (LOSS) PER COMMON SHARE
The following table presents a reconciliation of net income (loss) and shares used in calculating basic and diluted net income (loss) per share for the years ended December 31, 2025, 2024 and 2023.
 For the Years Ended
 December 31, 2025December 31, 2024December 31, 2023
 (dollars in thousands, except per share data)
Net income (loss)$2,051,690 $1,011,768 $(1,638,457)
Net income (loss) attributable to noncontrolling interests24,428 9,862 4,714 
Net income (loss) attributable to Annaly 2,027,262 1,001,906 (1,643,171)
Dividends on preferred stock157,931 154,551 141,676 
Net income (loss) available (related) to common stockholders$1,869,331 $847,355 $(1,784,847)
Weighted average shares of common stock outstanding-basic639,513,399 521,737,554 494,541,323 
Add: Effect of stock awards, if dilutive1,529,342 1,010,056 — 
Weighted average shares of common stock outstanding-diluted641,042,741 522,747,610 494,541,323 
Net income (loss) per share available (related) to common share
Basic$2.92 $1.62 $(3.61)
Diluted$2.92 $1.62 $(3.61)
The computations of diluted net income (loss) per share available (related) to common share for the year ended December 31, 2023 excludes 1.9 million shares of potentially dilutive restricted stock units and performance stock units because their effect would have been anti-dilutive. There were no potentially dilutive restricted stock units or performance stock units for the years ended December 31, 2025 and 2024.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 15, 2024
2022Feb 16, 2023
2021Feb 18, 2022
2020Feb 19, 2021
2019Feb 14, 2020
2017Feb 16, 2018

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.