16. Earnings Per Share
The following table reconciles the numerators and denominators used in the computations of basic and diluted earnings per share from continuing operations (in thousands, except per share data):
| | | | | | | | | | | | | | | | | |
| | Year Ended December 31, |
| | 2025 | | 2024 | | 2023 |
| Numerator: | | | | | |
| Loss from continuing operations | $ | (255,490) | | | $ | (271,548) | | | $ | (491,538) | |
| Less: Net income (loss) attributable to non-controlling interests | (655) | | | 76 | | | (332) | |
| Less: Preferred stock dividends | — | | | — | | | 14,257 | |
| Net loss from continuing operations available to common stockholders, basic and diluted | $ | (254,835) | | | $ | (271,624) | | | $ | (505,463) | |
| Denominator: | | | | | |
| Basic weighted-average common shares outstanding | 391,707 | | | 383,733 | | | 346,567 | |
| | | | | |
| Diluted weighted-average common shares outstanding | 391,707 | | | 383,733 | | | 346,567 | |
| Earnings per share from continuing operations: | | | | | |
| Basic | $ | (0.65) | | | $ | (0.71) | | | $ | (1.46) | |
| Diluted | $ | (0.65) | | | $ | (0.71) | | | $ | (1.46) | |
Basic earnings per share is computed by dividing net loss from continuing operations available to common stockholders by the weighted-average number of common shares outstanding during each period. Diluted earnings per share is computed by dividing net loss from continuing operations available to common stockholders by the weighted-average number of common shares outstanding plus the effect of all dilutive common stock equivalents during each period. The diluted weighted-average common shares outstanding calculation excludes 2 million, 4 million and 3 million of dilutive stock options and restricted stock awards for the years ended December 31, 2025, 2024 and 2023, respectively, as their effect would be anti-dilutive given the net loss incurred in those periods. The calculation of diluted weighted-average shares excludes the impact of 2 million, 2 million, and 6 million for the years ended December 31, 2025, 2024 and 2023, respectively, of anti-dilutive common stock equivalents.
We have used the if-converted method for calculating any potential dilutive effect of the Exchangeable Notes on our diluted net income per share. Under the if-converted method, the 2025 Exchangeable Notes are assumed to be converted at the beginning of each period and the 2026 Exchangeable Notes are assumed to be converted at the beginning of the 2025 period and at the issuance date of March 19, 2024 for the 2024 period. The resulting common shares are included in the denominator of the diluted earnings per share calculation for the entire period being presented and interest expense, net of tax, recorded in connection with the Exchangeable Notes is added back to the numerator, only in the periods in which such effect is dilutive. The approximately 40 million resulting common shares related to the Exchangeable Notes for the year ended December 31, 2025, 57 million resulting common shares related to the Exchangeable Notes for the year ended December 31, 2024, and 42 million resulting common shares related to the 2025 Exchangeable Notes for the year ended December 31, 2023 are not included in the dilutive weighted-average common shares outstanding calculation as their effect would be anti-dilutive given the net loss incurred in those periods.
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.