Select Water Solutions, Inc. Earnings Per Share Disclosure
NOTE 17— INCOME PER SHARE
Income per share is based on the amount of income allocated to the stockholders and the weighted-average number of shares outstanding during the period for each class of common stock. Outstanding options are included in the calculation of diluted weighted-average shares outstanding to the extent they may be dilutive upon exercise and are excluded to the extent they would be antidilutive. Accordingly, outstanding options to purchase 692,908, 913,042 and 1,654,952 shares of Class A common stock, representing 81%, 89% and 100% of the total outstanding options at period end for the years ended December 31, 2025, 2024 and 2023 respectively, are excluded from the calculation of diluted weighted-average shares outstanding as their effect is antidilutive. Shares of the Company’s Class B common stock do not share in net income or losses attributable to the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Diluted earnings per share was computed using the treasury stock method.
The following tables present the Company’s calculation of basic and diluted earnings per share for the years ended December 31, 2025, 2024 and 2023 (dollars in thousands, except share and per share amounts):
Year ended December 31, 2025 | |||||||||
| Select Water Solutions, Inc. | | Class A | | Class B | ||||
Numerator: | |||||||||
Net income | $ | 21,467 | |||||||
Net income attributable to noncontrolling interests | (244) | ||||||||
Net income attributable to Select Water Solutions, Inc. — basic | $ | 21,223 | $ | 21,223 | $ | — | |||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of restricted stock | 25 | 25 | — | ||||||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of performance units | 36 | 36 | — | ||||||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of stock options | 1 | 1 | — | ||||||
Net income attributable to Select Water Solutions, Inc. — diluted | $ | 21,285 | $ | 21,285 | $ | — | |||
Denominator: | |||||||||
Weighted-average shares of common stock outstanding — basic | 101,860,662 | 16,221,101 | |||||||
Dilutive effect of restricted stock | 778,471 | — | |||||||
Dilutive effect of performance share units | 1,106,032 | — | |||||||
Dilutive effect of stock options | 38,631 | — | |||||||
Weighted-average shares of common stock outstanding — diluted | 103,783,796 | 16,221,101 | |||||||
Income per share: | |||||||||
Basic | $ | 0.21 | $ | — | |||||
Diluted | $ | 0.21 | $ | — | |||||
Year ended December 31, 2024 | |||||||||
Select Water Solutions, Inc. | Class A | Class B | |||||||
Numerator: | |||||||||
Net income | $ | 35,450 | |||||||
Net income attributable to noncontrolling interests | (4,806) | ||||||||
Net income attributable to Select Water Solutions, Inc. — basic | $ | 30,644 | $ | 30,644 | $ | — | |||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of restricted stock | 62 | 62 | — | ||||||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of performance units | 67 | 67 | — | ||||||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of stock options | 6 | 6 | — | ||||||
Net income attributable to Select Water Solutions, Inc. — diluted | $ | 30,779 | $ | 30,779 | $ | — | |||
Denominator: | |||||||||
Weighted-average shares of common stock outstanding — basic | 99,986,771 | 16,221,101 | |||||||
Dilutive effect of restricted stock | 1,020,415 | — | |||||||
Dilutive effect of performance share units | 1,093,901 | — | |||||||
Dilutive effect of stock options | 93,236 | — | |||||||
Weighted-average shares of common stock outstanding — diluted | 102,194,323 | 16,221,101 | |||||||
Income per share: | |||||||||
Basic | $ | 0.31 | $ | — | |||||
Diluted | $ | 0.30 | $ | — | |||||
Year ended December 31, 2023 | |||||||||
Select Water Solutions, Inc. | Class A | Class B | |||||||
Numerator: | |||||||||
Net income | $ | 79,219 | |||||||
Net income attributable to noncontrolling interests | (4,816) | ||||||||
Net income attributable to Select Water Solutions, Inc. — basic | $ | 74,403 | $ | 74,403 | $ | — | |||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of restricted stock | 94 | 94 | — | ||||||
Add: Reallocation of net income attributable to noncontrolling interests for the dilutive effect of performance share units | 43 | 43 | — | ||||||
Net income attributable to Select Water Solutions, Inc. — diluted | $ | 74,540 | $ | 74,540 | $ | — | |||
Denominator: | |||||||||
Weighted-average shares of common stock outstanding — basic | 101,393,822 | 16,221,101 | |||||||
Dilutive effect of restricted stock | 1,355,499 | — | |||||||
Dilutive effect of performance share units | 615,865 | — | |||||||
Weighted-average shares of common stock outstanding — diluted | 103,365,186 | 16,221,101 | |||||||
Income per share: | |||||||||
Basic | $ | 0.73 | $ | — | |||||
Diluted | $ | 0.72 | $ | — | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 18, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 21, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
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.