19. Basic and Diluted Loss Per Common Share

Earnings (loss) per share ("EPS") is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards and Series C Preferred Stock that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, shares of any unvested restricted stock and Series C Preferred Stock of the Company are considered participating securities; however, unvested shares of restricted stock do not participate in losses and, as such, are excluded from the computation of basic earnings (loss) per share during periods of net losses. The dilutive effect, if applicable, of stock options and their equivalents (including non-vested stock issued under stock-based compensation plans), is computed using the "if-converted method" if this measurement is determined to be more dilutive than the treasury stock method in a period.

The Company had no dilutive common stock equivalents during the years ended December 31, 2024 and 2023, due to the results from continuing operations being a loss, net of tax. For the years ended December 31, 2024 and 2023, 171,565 and 95,187, respectively, of common stock equivalents from unvested restricted stock awards and unvested restricted stock units were excluded from the weighted-average number of shares used to calculate diluted loss per share as their inclusion would have been anti-dilutive. Other instruments that may, in the future, if the average market price of the Company's stock exceeds the conversion prices, have a dilutive effect on EPS, but were excluded from the computations of diluted net loss per share, and may be excluded from computations of diluted EPS in the future, are: convertible preferred stock, convertible debt, and stock options. Refer to Note 15. Share-based Compensation and Note 16. Equity and Temporary Equity for additional information on INNOVATE's equity instruments.

The following table presents a reconciliation of net loss to net loss used in the basic and diluted EPS calculations (in millions, except shares and per share amounts):


	Year Ended December 31,
		2024			2023
Net loss		$	(39.7)		$	(38.9)
Net loss attributable to non-controlling interest and redeemable non-controlling interest		5.1			3.7
Net loss attributable to INNOVATE Corp.		(34.6)			(35.2)
Less: Preferred dividends		1.2			2.4




Net loss attributable to common stockholders and participating preferred stockholders		$	(35.8)		$	(37.6)

Loss allocable to common shares:
Participating shares
Weighted-average common shares outstanding (1)		10,696,274			7,814,620

Series C Preferred stock		947,307			—
Total		11,643,581			7,814,620

Percentage of loss allocated to:
Common stock		91.9		%	100.0		%

Series C Preferred stock		8.1		%	—		%

Numerator for loss per share


Net loss attributable to common stock holders, basic and diluted		$	(32.9)		$	(37.6)
Net loss attributable to Series C holder, basic and diluted		$	(2.9)		$	—






Denominator for loss per share:
Weighted-average common shares outstanding - basic and diluted (1)		10,696,274			7,814,620


Weighted-average Series C shares outstanding - basic and diluted		947,307			—


Loss per common share - basic and diluted (1)		$	(3.08)		$	(4.81)
Loss per Series C share - basic and diluted		$	(3.08)		$	—

(1) Basic and diluted loss per common share and weighted-average common shares outstanding for the year ended December 31, 2023, in the table above have been retroactively adjusted to reflect the 1-for-10 reverse stock split effected on August 8, 2024.

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.

INNOVATE Corp. Earnings Per Share Disclosure

About Earnings Per Share Disclosures

Other Available Disclosures