Turning Point Brands, Inc. Earnings Per Share Disclosure
Note 20. Earnings Per Share
The Company calculates earnings per share using the treasury stock method for its options and non-vested restricted stock units, and the if-converted method for its Convertible Senior Notes.
The following is a reconciliation of the numerators and denominators of the basic and diluted EPS computations:
| December 31, 2025 | December 31, 2024 | December 31, 2023 | ||||||||||||||||||||||||||||||||||
| Income (Loss) | Shares | Per Share | Income (Loss) | Shares | Per Share | Income (Loss) | Shares | Per Share | ||||||||||||||||||||||||||||
| Basic EPS: | ||||||||||||||||||||||||||||||||||||
| Numerator | ||||||||||||||||||||||||||||||||||||
| Income from continuing operations less non-controlling interest | $ | 58,165 | $ | 3.18 | $ | 47,326 | $ | 2.67 | $ | 38,747 | $ | 2.20 | ||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | - | - | (7,517 | ) | (0.43 | ) | (285 | ) | (0.01 | ) | ||||||||||||||||||||||||||
| Net income attributable to Turning Point Brands, Inc. | $ | 58,165 | $ | 3.18 | $ | 39,809 | $ | 2.24 | $ | 38,462 | $ | 2.19 | ||||||||||||||||||||||||
| Denominator | ||||||||||||||||||||||||||||||||||||
| Weighted average | 18,314,047 | 17,734,239 | 17,578,270 | |||||||||||||||||||||||||||||||||
| Diluted EPS: | ||||||||||||||||||||||||||||||||||||
| Numerator | ||||||||||||||||||||||||||||||||||||
| Income from continuing operations less non-controlling interest | $ | 58,165 | $ | 47,326 | $ | 38,747 | ||||||||||||||||||||||||||||||
| Interest expense related to Convertible Senior Notes, net of tax | - | 1,597 | 2,667 | |||||||||||||||||||||||||||||||||
| Diluted income from continuing operations | $ | 58,165 | $ | 3.11 | $ | 48,923 | $ | 2.53 | $ | 41,414 | $ | 2.02 | ||||||||||||||||||||||||
| Loss from discontinued operations, net of tax | - | - | (7,517 | ) | (0.39 | ) | (285 | ) | (0.01 | ) | ||||||||||||||||||||||||||
| Diluted net income | $ | 58,165 | $ | 3.11 | $ | 41,406 | $ | 2.14 | $ | 41,129 | $ | 2.01 | ||||||||||||||||||||||||
| Denominator | ||||||||||||||||||||||||||||||||||||
| Basic weighted average | 18,314,047 | 17,734,239 | 17,578,270 | |||||||||||||||||||||||||||||||||
| Convertible Senior Notes (1) | - | 1,192,597 | 2,533,201 | |||||||||||||||||||||||||||||||||
| Stock options and restricted stock units (2) | 416,588 | 435,970 | 355,935 | |||||||||||||||||||||||||||||||||
| 18,730,635 | 19,362,806 | 20,467,406 | ||||||||||||||||||||||||||||||||||
| (1) | There were 0.0 million, 0.2 million and 0.2 million outstanding stock options not included in the computation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, respectively, because the effect would have been antidilutive. |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 2, 2026 | Showing above |
| 2024 | Mar 6, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Mar 15, 2023 | |
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.