TWO Annual report [Section 13 and 15(d), not S-K Item 405]

Annual report [Section 13 and 15(d), not S-K Item 405]

Earnings Per Share

Earnings Per Share

12 Months Ended

Dec. 31, 2025

The following table presents a reconciliation of the net (loss) earnings and shares used in calculating basic and diluted (loss) earnings per share for the years ended December 31, 2025, 2024 and 2023:


	Year Ended
	December 31,
(in thousands, except share data)		2025		2024		2023
Basic (Loss) Earnings Per Share:


Net (loss) income		$	(454,300)	$	298,168	$	(106,371)


Dividends on preferred stock		(52,791)		(47,136)		(48,607)
Gain on repurchase and retirement of preferred stock		—		644		2,973
Dividends and undistributed earnings allocated to participating restricted stock units		(1,309)		(1,693)		(1,220)
Net (loss) income attributable to common stockholders, basic		$	(508,400)	$	249,983	$	(153,225)
Basic weighted average common shares		104,111,993		103,562,824		95,672,143
Basic (loss) earnings per weighted average common share		$	(4.88)	$	2.41	$	(1.60)
Diluted (Loss) Earnings Per Share:
Net (loss) income attributable to common stockholders, basic		$	(508,400)	$	249,983	$	(153,225)
Reallocation impact of undistributed earnings to participating restricted stock units		—		(77)		—

Interest expense attributable to convertible notes		—		18,199		—
Net (loss) income attributable to common stockholders, diluted		$	(508,400)	$	268,105	$	(153,225)
Basic weighted average common shares		104,111,993		103,562,824		95,672,143
Effect of dilutive shares issued in an assumed vesting of performance share units		—		477,465		—
Effect of dilutive shares issued in an assumed conversion		—		9,049,219		—
Diluted weighted average common shares		104,111,993		113,089,508		95,672,143
Diluted (loss) earnings per weighted average common share		$	(4.88)	$	2.37	$	(1.60)

For the years ended December 31, 2025 and 2023, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to participating RSAs and RSUs, as their inclusion would have been antidilutive. For the year ended December 31, 2024, participating RSUs were included in the calculation of basic and diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the years ended December 31, 2025 and 2023, excluded from the calculation of diluted earnings per share was the effect of adding weighted average common share equivalents related to the assumed vesting of outstanding PSUs, as their inclusion would have been antidilutive for these periods. For the year ended December 31, 2024, the assumed vesting of outstanding PSUs was included in the calculation of diluted earnings per share under the two-class method, as it was more dilutive than the alternative treasury stock method.

For the years ended December 31, 2025 and 2023, excluded from the calculation of diluted earnings per share was the effect of adding the assumed conversion of the Company’s convertible senior notes, as inclusion would have been antidilutive under the two-class method for these periods. For the year ended December 31, 2024, the assumed conversion of the Company’s convertible senior notes was included in the calculation of diluted earnings per share under the if-converted method.