Earnings per Share
The following table provides a reconciliation of net income and the number of shares of common stock used in the computation of basic EPS and diluted EPS (amounts in thousands, except per share amounts):
For the Year Ended December 31,
20252024
2023
Basic Earnings
Income attributable to STWD common stockholders$411,544 $359,933 $339,213 
Less: Income attributable to participating shares not already deducted as non-controlling interests(9,188)(7,201)(6,412)
Basic earnings$402,356 $352,732 $332,801 
Diluted Earnings
Income attributable to STWD common stockholders$411,544 $359,933 $339,213 
Less: Income attributable to participating shares not already deducted as non-controlling interests(9,188)(7,201)(6,412)
Diluted earnings$402,356 $352,732 $332,801 
Number of Shares:
Basic — Average shares outstanding349,687 319,921 309,771 
Effect of dilutive securities — Contingently issuable shares95 331 450 
Effect of dilutive securities — Unvested non-participating shares209 317 286 
Diluted — Average shares outstanding349,991 320,569 310,507 
Earnings Per Share Attributable to STWD Common Stockholders:
Basic$1.15 $1.10 $1.07 
Diluted$1.15 $1.10 $1.07 
As of December 31, 2025, 2024 and 2023, participating shares of 14.5 million, 13.1 million and 12.7 million, respectively, were excluded from the computation of diluted shares as their effect was already considered under the more dilutive two-class method used above. Such participating shares at December 31, 2025, 2024 and 2023 included 9.6 million, 9.7 million and 9.7 million potential shares, respectively, of our common stock issuable upon redemption of the Class A Units in SPT Dolphin, as discussed in Note 18. Our current and prior convertible notes repaid in April 2023 were not dilutive for the years ended December 31, 2025, 2024 and 2023.

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 27, 2025
2023Feb 22, 2024
2022Mar 1, 2023
2021Feb 25, 2022
2020Feb 25, 2021
2019Feb 25, 2020
2018Feb 28, 2019
2017Feb 28, 2018
2016Feb 23, 2017
2015Feb 25, 2016

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.