Earnings (Loss) per Share
Basic and diluted earnings (loss) per share are computed pursuant to the two-class method. Under the two-class method, the Company attributes net income to common stock and other participating rights (including those with vested share-based awards). Basic earnings per share is calculated by taking net income, less earnings allocated to participating rights, divided by the basic weighted-average common stock outstanding. Loss per share is calculated by taking net loss divided by basic weighted-average common stock outstanding as participating rights do not share in losses. In accordance with the two-class method, diluted earnings per share is calculated using the more dilutive impact of the treasury-stock method or from reducing net income for the earnings allocated to participating rights.
The following table sets forth the computation of earnings (loss) per share on a basic and diluted basis pursuant to the two-class method for the periods indicated (in millions, except for share and per share data):
Year Ended December 31,
202520242023
Basic:
Net income (loss)$(137)$85 $(11)
Less: net income attributable to participating rights— (1)— 
Net income (loss) attributable to common stockholders$(137)$84 $(11)
Weighted-average common shares outstanding, basic227,773,074 224,333,034 220,097,989 
Earnings (loss) per share, basic$(0.60)$0.37 $(0.05)
Diluted:
Net income (loss)$(137)$85 $(11)
Less: net income attributable to participating rights— (1)— 
Net income (loss) attributable to common stockholders$(137)$84 $(11)
Weighted-average common shares outstanding, basic227,773,074 224,333,034 220,097,989 
Effect of dilutive potential common shares— 2,159,100 — 
Weighted-average common shares outstanding, diluted227,773,074 226,492,134 220,097,989 
Earnings (loss) per share, diluted$(0.60)$0.37 $(0.05)
Due to the net loss for the years ended December 31, 2025 and 2023, diluted weighted-average shares outstanding are equal to basic weighted-average shares outstanding because the effect of all equity awards is anti-dilutive. Approximately 5,062,050 shares were excluded from the computation of diluted weighted-average shares for the year ended December 31, 2024, due to anti-dilutive effects.

Historical Timeline

Fiscal YearFiled
2025Feb 18, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 22, 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.