Earnings Per ShareThe following table sets forth the computation of basic and diluted net earnings per share for the years ended December 31, 2025, 2024 and 2023:
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| ($ in thousands, except for share and per share amounts) | | | | | | 2025 | | 2024 | | 2023 |
| Numerator | | | | | | | | | | |
| Net income | | | | | | $ | 170,028 | | | $ | 118,828 | | | $ | 85,984 | |
| Less: Undistributed income allocated to participating securities | | | | | | — | | | — | | | (1,677) | |
| Net income attributable to common stockholders (numerator for basic earnings per share) | | | | | | 170,028 | | | 118,828 | | | 84,307 | |
| Add back: Undistributed income allocated to participating securities | | | | | | — | | | — | | | 1,677 | |
| Net income (numerator for diluted earnings per share under the two-class method) | | | | | | $ | 170,028 | | | $ | 118,828 | | | $ | 85,984 | |
| Denominator | | | | | | | | | | |
| Basic weighted-average common shares | | | | | | 40,407,310 | | 40,056,475 | | 36,031,907 |
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| Dilutive effect of preferred shares | | | | | | — | | — | | 716,708 |
| Dilutive effect of stock notes | | | | | | — | | — | | 696,110 |
| Dilutive effect of stock units | | | | | | 897,426 | | 917,510 | | 736,837 |
| Dilutive effect of options | | | | | | 503,310 | | 403,475 | | 135,972 |
| Diluted weighted-average common share equivalents | | | | | | 41,808,046 | | 41,377,460 | | 38,317,534 |
| Basic earnings per share | | | | | | $ | 4.21 | | | $ | 2.97 | | | $ | 2.34 | |
| Diluted earnings per share | | | | | | $ | 4.07 | | | $ | 2.87 | | | $ | 2.24 | |
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The following table presents anti-dilutive instruments that were excluded from the calculation of diluted weighted-average common share equivalents during the years ended December 31, 2025, 2024 and 2023:
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| | | | | | 2025 | | 2024 | | 2023 |
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| Stock units | | | | | | 104,531 | | 20,346 | | 3,931 |
| Options | | | | | | 242 | | 859 | | 914 |
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The following table presents common share equivalents of contingently issuable instruments that were excluded from basic earnings per share in the years ended December 31, 2025, 2024 and 2023:
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| | | | | | 2025 | | 2024 | | 2023 |
| Common shares | | | | | | — | | — | | 920,864 |
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| Total | | | | | | — | | — | | 920,864 |
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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.