NexPoint Residential Trust, Inc. Earnings Per Share Disclosure
8. Earnings (Loss) Per Share
Basic earnings (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average number of shares of the Company’s common stock outstanding, which excludes any unvested restricted stock units issued pursuant to the 2016 LTIP and 2025 LTIP. Diluted earnings (loss) per share is computed by adjusting basic earnings (loss) per share for the dilutive effect of the assumed vesting of restricted stock units. During periods of net loss, the assumed vesting of restricted stock units is anti-dilutive and is not included in the calculation of earnings (loss) per share.
The effect of the conversion of OP Units held by noncontrolling limited partners is not reflected in the computation of basic and diluted earnings (loss) per share as the assumed conversion of these units would have no net impact on the determination of diluted earnings (loss) per share. See Note 9 for additional information.
The following table sets forth the computation of basic and diluted earnings (loss) per share for the periods presented (in thousands, except per share amounts):
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For the Year Ended December 31, |
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2025 |
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2024 |
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2023 |
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Numerator for earnings (loss) per share: |
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Net income (loss) |
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$ |
(32,154 |
) |
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$ |
1,114 |
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$ |
44,433 |
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Net income (loss) attributable to redeemable noncontrolling interests in the OP |
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(127 |
) |
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4 |
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|
169 |
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Net income (loss) attributable to common stockholders |
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$ |
(32,027 |
) |
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$ |
1,110 |
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$ |
44,264 |
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Denominator for earnings (loss) per share: |
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Weighted average common shares outstanding |
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25,390 |
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|
25,516 |
|
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|
25,654 |
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Denominator for basic earnings (loss) per share |
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25,390 |
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|
25,516 |
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|
25,654 |
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Weighted average unvested restricted stock units |
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164 |
|
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|
730 |
|
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|
591 |
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Denominator for diluted earnings (loss) per share |
(1) |
|
25,390 |
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|
26,246 |
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|
26,245 |
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Earnings (loss) per weighted average common share: |
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Basic |
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$ |
(1.26 |
) |
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$ |
0.04 |
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$ |
1.73 |
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|
Diluted |
|
$ |
(1.26 |
) |
|
$ |
0.04 |
|
|
$ |
1.69 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 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.