Earnings (Loss) Per Share
The Company computes basic EPS by dividing Net income (loss) attributable to SiteOne by the weighted average number of common shares outstanding for the period. The Company includes vested RSUs, DSUs, and PSUs that have not been settled in common shares in the basic weighted average number of common shares calculation. The Company’s computation of diluted EPS reflects the potential dilution that could occur if dilutive securities or other obligations to issue common stock were exercised or converted into common stock, which include in-the-money outstanding stock options and RSUs. PSUs are excluded from the calculation of potential dilutive common shares until the performance conditions have been achieved on the basis of the assumption that the end of the reporting period was the end of the contingency period, if such issuable shares are dilutive. Using the treasury stock method, the effect of dilutive securities includes the additional shares of common stock that would have been outstanding based on the assumption that these potentially dilutive securities had been issued. The treasury stock method assumes proceeds from the exercise price of stock options and the unamortized compensation expense of RSUs and stock options are used to repurchase common shares at the average market price during the period, thus reducing the dilutive effect. RSUs and stock options with assumed proceeds per unit above the Company’s average share price for the periods presented are excluded from the diluted EPS calculation because the effect is anti-dilutive.
The following table sets forth the computation of the weighted average number of diluted common shares outstanding for the years ended December 28, 2025, December 29, 2024, and December 31, 2023:
| | | | | | | | | | | | | | | | | | | | |
| | For the year
December 30, 2024 to December 28, 2025 | | For the year
January 1, 2024 to December 29, 2024 | | For the year
January 2, 2023 to December 31, 2023 |
| Shares used in the computation of basic earnings per share | | 44,831,332 | | | 45,244,491 | | | 45,112,977 | |
| Effect of dilutive securities: | | | | | | |
| Stock options | | 207,106 | | | 340,190 | | | 492,075 | |
| RSUs and PSUs | | 30,085 | | | 37,232 | | | 71,686 | |
| DSUs | | 14,873 | | | 13,164 | | | 9,530 | |
| Shares used in the computation of diluted earnings per share | | 45,083,396 | | | 45,635,077 | | | 45,686,268 | |
The diluted earnings per common share calculation for the years ended December 28, 2025, December 29, 2024, and December 31, 2023 excluded the effect of 197,804, 189,864, and 182,467 potential shares of common stock, respectively, because the assumed exercises of a portion of the Company’s employee stock options and RSUs were anti-dilutive.
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.