Exzeo Group, Inc. Earnings Per Share Disclosure
Basic EPS is computed by dividing net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. The Company applies the two-class method in calculating basic EPS because certain unvested restricted stock awards are considered participating securities, as the holders have non-forfeitable dividend rights. Under this method, earnings are allocated between common stockholders and participating securities based on their respective rights to receive dividends and undistributed earnings.
Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted. Potentially dilutive securities are excluded from diluted EPS when their effect would be anti-dilutive. For the periods presented, weighted-average diluted shares outstanding were the same as weighted-average basic shares outstanding.
The calculation of basic and diluted earnings per share for the periods presented is as follows:
Basic and Diluted Earnings per Share from Continuing Operations
|
|
December 31, |
|
||||||||||||||
(in thousands, except per share amounts) |
|
2025 |
|
|
|
2024 |
|
|
|
2023 |
|
||||||
Numerator: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations, after tax |
|
$ |
|
82,749 |
|
|
|
$ |
|
26,068 |
|
|
|
$ |
|
12,901 |
|
Less: Dividends on preferred stock |
|
|
— |
|
|
|
|
|
(10,149 |
) |
|
|
|
|
(9,370 |
) |
|
Less: Income attributable to participating securities from continuing operations |
|
|
|
(3,751 |
) |
|
|
|
|
(550 |
) |
|
|
|
|
(201 |
) |
Income attributable to common stockholders from continuing operations |
|
$ |
|
78,998 |
|
|
|
$ |
|
15,369 |
|
|
|
$ |
|
3,330 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Denominator: |
|
|
|
|
|
|
|
|
|
|
|
||||||
Weighted-average basic shares outstanding |
|
|
|
80,171 |
|
|
|
|
|
77,494 |
|
|
|
|
|
76,102 |
|
Weighted-average diluted shares outstanding (1) |
|
|
|
80,171 |
|
|
|
|
|
77,494 |
|
|
|
|
|
76,102 |
|
Basic and diluted earnings per share from continuing operations |
|
$ |
0.99 |
|
|
|
$ |
|
0.20 |
|
|
|
$ |
|
0.04 |
|
|
Basic and Diluted Earnings per Share from Discontinued Operations
|
December 31, |
|
|||||||||
(in thousands, except per share amounts) |
|
2024 |
|
|
|
2023 |
|
||||
Numerator: |
|
|
|
|
|
|
|
||||
Income from discontinued operations, after tax |
|
$ |
|
19,253 |
|
|
|
$ |
|
8,561 |
|
Less: Income attributable to participating securities from discontinued operations |
|
|
|
(667 |
) |
|
|
|
|
(486 |
) |
Income attributable to common stockholders from discontinued operations |
|
$ |
|
18,586 |
|
|
|
$ |
|
8,075 |
|
|
|
|
|
|
|
|
|
|
|
||
Denominator: |
|
|
|
|
|
|
|
||||
Weighted-average basic shares outstanding |
|
|
|
77,494 |
|
|
|
|
|
76,102 |
|
Weighted-average diluted shares outstanding (1) |
|
|
|
77,494 |
|
|
|
|
|
76,102 |
|
Basic and diluted earnings per share from discontinued operations |
|
$ |
|
0.24 |
|
|
|
$ |
|
0.11 |
|
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.