WaterBridge Infrastructure LLC Earnings Per Share Disclosure
Our unvested RSUs are deemed to be participating securities; therefore, we apply the two-class method for the calculation of basic EPS for the Class A shares. Diluted EPS attributable to Class A shares is calculated under both the two-class method and the treasury stock method, and the more dilutive of the two calculations is presented.
Class B shares are considered potentially dilutive shares of Class A shares because Class B shares are convertible into Class A shares on a one-for-one basis; therefore, we apply the if-converted method for the calculation of diluted EPS for the Class A shares.
We determined that the presentation of EPS for the period prior to the IPO would not be meaningful due to the significant nature of change to our capital structure as part of the IPO. Therefore, EPS information has not been presented for periods prior to the IPO.
The following table sets forth the computation of basic and diluted EPS attributable to our Class A shares for the period from September 18, 2025 to December 31, 2025, which represents the period subsequent to the IPO.
(in thousands, except for share and per share amounts) |
|
Period from September 18, 2025 to December 31, 2025 |
|
|
Numerator |
|
|
|
|
Net income |
|
$ |
9 |
|
Less: Net income prior to IPO |
|
|
16,424 |
|
Less: Net loss attributable to noncontrolling interest |
|
|
(11,878 |
) |
Net loss attributable to WaterBridge Infrastructure LLC |
|
$ |
(4,537 |
) |
|
|
|
|
|
Denominator |
|
|
|
|
Weighted average Class A shares outstanding, basic and dilutive |
|
|
43,264,850 |
|
|
|
|
|
|
Net loss per Class A share, basic and dilutive |
|
$ |
(0.10 |
) |
Class B shares outstanding as of December 31, 2025, were determined to be anti-dilutive and have been excluded in the computation of diluted net loss per share. In addition, weighted-average RSUs of 877,129 were evaluated under the treasury stock method for potentially dilutive effects and were determined to be anti-dilutive for the period from September 18, 2025 through December 31, 2025 and have been excluded from the computation of diluted net loss per share.
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.