EARNINGS PER SHARE
The Company presents basic and diluted earnings per share for its common stock. Basic earnings per share is calculated by dividing the net income of the Company by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share is determined by adjusting the profit or loss and the weighted average number of shares of common stock outstanding for the effects of all potentially dilutive securities.
The earnings are used as the basis of determining whether the inclusion of common stock equivalents would be anti-dilutive. The computation of diluted shares for the years ended December 31, 2025, 2024, and 2023 includes the effect of shares that would be issued in connection with warrants, stock options, restricted stock awards and performance stock unit awards, as these common stock equivalents are dilutive to the earnings per share recorded in those periods.
The following table presents the Company’s common stock equivalents that were excluded from the calculation of earnings per share as they would be anti-dilutive:
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock option awards | 697,024 | | 854,545 | | 1,214,560 |
| Restricted stock awards | 575,070 | | 376,743 | | 340,331 |
| Performance stock unit awards | 354,696 | | 286,881 | | — |
The following table presents the Company’s basic earnings per share and shares outstanding (in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net income (1) | $ | 207,585 | | | $ | 211,823 | | | $ | 267,090 | |
| Denominator: | | | | | |
| Weighted average number of common shares outstanding | 162,099 | | | 171,567 | | | 178,973 | |
| Earnings per Common Share: | | | | | |
| Earnings per common share, basic | $ | 1.28 | | | $ | 1.23 | | | $ | 1.49 | |
(1) Net income for the year ended December 31, 2023 includes $63.1 million related to the termination payment received on behalf of Amedisys, under the terms of the Mutual Termination Agreement, net of merger-related expenses and taxes. See Note 3, Business Acquisitions, for further discussion.
The following table presents the Company’s diluted earnings per share and shares outstanding (in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Net income (1) | $ | 207,585 | | | $ | 211,823 | | | $ | 267,090 | |
| Denominator: | | | | | |
| Weighted average number of common shares outstanding | 162,099 | | | 171,567 | | | 178,973 | |
| Effect of dilutive securities | 1,266 | | | 1,278 | | | 1,402 | |
| Weighted average number of common shares outstanding, diluted | 163,365 | | | 172,845 | | | 180,375 | |
| Earnings per Common Share: | | | | | |
| Earnings per common share, diluted | $ | 1.27 | | | $ | 1.23 | | | $ | 1.48 | |
(1) Net income for the year ended December 31, 2023 includes $63.1 million related to the termination payment received on behalf of Amedisys, under the terms of the Mutual Termination Agreement, net of merger-related expenses and taxes. See Note 3, Business Acquisitions, for further discussion.