Earnings Per Share
The following table sets forth the computation of basic and diluted net income per common share for the years indicated:
 Year Ended December 31,
(in thousands, except per share data)
202520242023
Net income$328,095 $252,397 $187,544 
Earnings allocated to participating securities(1,918)(1,478)(1,032)
Dividends on preferred stock(4,719)(6,293)(6,635)
Deemed dividend on redemption of preferred stock(3,275)— — 
Discount on preferred shares repurchased— — 970 
Net income available to common stockholders$318,183 $244,626 $180,847 
Net income per common share:
Basic$2.62 $2.04 $1.54 
Diluted2.62 2.04 1.54 
Weighted average common shares:
Basic121,309 119,783 117,603 
Effect of dilutive securities:
Stock options67 82 121 
Restricted stock units61 35 21 
Diluted121,437 119,900 117,745 
 
In 2025, United had no potentially dilutive instruments outstanding that were not included in the above analysis. In 2024 and 2023, United excluded from the computation of earnings per share 984 and 1,968, respectively, potentially dilutive shares of common stock issuable upon exercise of stock options because of their antidilutive effect.

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.