Pennant Group, Inc. Earnings Per Share Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 33,764 | $ | 24,339 | $ | 13,910 | |||||||||||
| Less: net income attributable to noncontrolling interest | 4,186 | 1,780 | 531 | ||||||||||||||
| Net income attributable to The Pennant Group, Inc. | $ | 29,578 | $ | 22,559 | $ | 13,379 | |||||||||||
| Denominator: | |||||||||||||||||
| Weighted average shares outstanding for basic net income per share | 34,563 | 31,191 | 29,863 | ||||||||||||||
Plus: incremental shares from assumed conversion(a) | 753 | 809 | 330 | ||||||||||||||
| Adjusted weighted average common shares outstanding for diluted income per share | 35,316 | 32,000 | 30,193 | ||||||||||||||
| Earnings Per Share: | |||||||||||||||||
| Basic net income per common share | $ | 0.86 | $ | 0.72 | $ | 0.45 | |||||||||||
| Diluted net income per common share | $ | 0.84 | $ | 0.70 | $ | 0.44 | |||||||||||
| (a) | Options outstanding which are anti-dilutive and therefore not factored into the weighted average common shares amount above were 1,744, 1,271, and 2,363 for the years ended December 31, 2025, 2024, and 2023, respectively. | |||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 23, 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.