Westrock Coffee Co Earnings Per Share Disclosure
Note 19. Earnings Per Share
Westrock Series A Preferred Shares and our RSUs issued under our 2022 Equity Plan are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as Common Shares. As participating securities, we include these instruments in the computation of earnings per share under the two-class method described in ASC 260 Earnings per Share (“ASC 260”).
The dilutive effect of Westrock Series A Preferred Shares, the 2029 Convertible Notes and the 2031 Convertible Notes is calculated using the if-converted method, which assumes an add-back of any accretion on preferred shares and interest expense associated with the 2029 Convertible Notes and 2031 Convertible Notes to net income attributable to shareholders as if the securities were converted to Common Shares at the beginning of the reporting period (or at the time of issuance, if later), and the resulting Common Shares being included in the number of weighted-average units outstanding.
The dilutive effect of time-based option awards and RSUs is calculated using the treasury stock method, while performance-based awards are treated as contingently issuable.
The following potentially dilutive securities were excluded from the computation of diluted shares for the periods indicated because their inclusion would have an anti-dilutive effect on dilutive earnings (loss) per common share.
Year Ended December 31, | |||||||||
(Thousands) | | 2025 | | 2024 | | 2023 | |||
Warrants | — | 14,298 | 19,149 | ||||||
Restricted stock units | 1,951 | 2,536 | 1,917 | ||||||
Options | 1,191 | 1,299 | 1,445 | ||||||
If-converted securities | 36,675 | 30,514 | 23,551 | ||||||
The following table sets forth the computation of basic and diluted earnings per share under the two-class method for the periods indicated.
Year Ended December 31, | |||||||||
(Thousands, except per share data) | | 2025 | | 2024 | | 2023 | |||
Basic Earnings per Common Share | |||||||||
Numerator: | |||||||||
Net income (loss) attributable to common shareholders | $ | (90,098) | $ | (79,949) | $ | (34,743) | |||
Denominator: | |||||||||
Weighted-average common shares outstanding - basic | 95,351 | 89,795 | 80,684 | ||||||
Basic earnings (loss) per common share | $ | (0.94) | $ | (0.89) | $ | (0.43) | |||
Diluted Earnings per Common Share | |||||||||
Numerator: | |||||||||
Net income (loss) attributable to common shareholders - basic | $ | (90,098) | $ | (79,949) | $ | (34,743) | |||
Net income (loss) attributable to common shareholders - diluted | $ | (90,098) | $ | (79,949) | $ | (34,743) | |||
Denominator: | |||||||||
Weighted-average common shares outstanding - basic | 95,351 | 89,795 | 80,684 | ||||||
Weighted-average common shares outstanding - diluted | 95,351 | 89,795 | 80,684 | ||||||
Dilutive (loss) earnings per common share | $ | (0.94) | $ | (0.89) | $ | (0.43) | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 21, 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.