Note 3—Earnings Per Share
The Company has two classes of common stock, Class A and Class B. Basic and diluted earnings per share (“EPS”) attributable to common stockholders for Class A and Class B common stock were the same because they were entitled to the same liquidation and dividend rights.
The computation of basic and diluted EPS is as follows (in thousands, except per share amounts):
Year Ended December 31,
202520242023
Numerator:
Net income$443,304 $393,076 $178,940 
Denominator:
Weighted-average shares outstanding—basic488,278 490,879 489,261 
Effect of dilutive securities5,273 11,045 10,921 
Weighted-average shares outstanding—diluted493,551 501,924 500,182 
Basic earnings per share$0.91 $0.80 $0.37 
Diluted earnings per share$0.90 $0.78 $0.36 
Anti-dilutive equity awards under stock-based award plans excluded from the determination of diluted earnings per share22,742 284 5,580 

Historical Timeline

Fiscal YearFiled
2025Feb 27, 2026Showing above
2024Feb 21, 2025
2023Feb 15, 2024
2022Feb 15, 2023
2021Feb 16, 2022
2018Feb 22, 2019

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.