17. Earnings per Common Share
Basic earnings per share is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per share is calculated by dividing net income available for common stockholders by the weighted average number of shares of common stock outstanding, adjusted for the potentially dilutive effect of outstanding stock options, performance-based stock and restricted stock.
The following table provides the inputs to the calculations of basic and diluted earnings per common share (share amounts not in thousands):
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| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Loss from continuing operations | $ | (423,183) | | | $ | (41,924) | | | $ | (102,147) | |
| Income from continuing operations attributable to redeemable noncontrolling interest | 161 | | | 37 | | | — | |
| Loss from continuing operations attributable to RYAM | (423,344) | | | (41,961) | | | (102,147) | |
| Less: Redeemable noncontrolling interest adjustment to redemption value | (1,824) | | | (253) | | | — | |
| Loss from continuing operations attributable to RYAM common stockholders | (425,168) | | | (42,214) | | | (102,147) | |
| Income from discontinued operations, net of tax attributable to RYAM | 2,670 | | | 3,217 | | | 312 | |
| Net loss attributable to RYAM common stockholders | $ | (422,498) | | | $ | (38,997) | | | $ | (101,835) | |
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| Weighted average shares used in determining basic earnings per common share | 66,782,262 | | | 65,748,775 | | | 65,108,397 | |
| Dilutive effect of: | | | | | |
| Stock options | — | | | — | | | — | |
| Performance-based and restricted stock units | — | | | — | | | — | |
| Weighted average shares used in determining diluted earnings per common share | 66,782,262 | | | 65,748,775 | | | 65,108,397 | |
Anti-dilutive instruments excluded from the computation of diluted earnings per share included (not in thousands):
| | | | | | | | | | | | | | | | | |
| Year Ended December 31, |
| 2025 | | 2024 | | 2023 |
| Stock options | — | | | — | | | 46,798 | |
| Performance-based and restricted stock units | 2,694,942 | | | 3,341,516 | | | 3,257,295 | |
| Total anti-dilutive instruments | 2,694,942 | | | 3,341,516 | | | 3,304,093 | |
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.