TWO Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings Per Share

Earnings Per Share

6 Months Ended

Jun. 30, 2025

The following table presents a reconciliation of the (loss) earnings and shares used in calculating basic and diluted (loss) earnings per share for the three and six months ended June 30, 2025 and 2024:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands, except share data)	2025		2024		2025		2024
Basic (Loss) Earnings Per Share:


Net (loss) income	$	(259,041)	$	56,336	$	(338,096)	$	259,924


Dividends on preferred stock	(13,239)		(11,784)		(26,425)		(23,568)
Gain on repurchase and retirement of preferred stock	—		—		—		644
Dividends and undistributed earnings allocated to participating restricted stock units	(344)		(330)		(748)		(1,704)
Net (loss) income attributable to common stockholders, basic	$	(272,624)	$	44,222	$	(365,269)	$	235,296
Basic weighted average common shares	104,084,326		103,555,755		104,030,680		103,478,847
Basic (loss) earnings per weighted average common share	$	(2.62)	$	0.43	$	(3.51)	$	2.27
Diluted (Loss) Earnings Per Share:
Net (loss) income attributable to common stockholders, basic	$	(272,624)	$	44,222	$	(365,269)	$	235,296
Reallocation impact of undistributed earnings to participating restricted stock units	—		—		—		27

Interest expense attributable to convertible notes	—		—		—		9,198
Net (loss) income attributable to common stockholders, diluted	$	(272,624)	$	44,222	$	(365,269)	$	244,521
Basic weighted average common shares	104,084,326		103,555,755		104,030,680		103,478,847
Effect of dilutive shares issued in an assumed vesting of performance share units	—		355,057		—		428,728
Effect of dilutive shares issued in an assumed conversion	—		—		—		9,229,054
Diluted weighted average common shares	104,084,326		103,910,812		104,030,680		113,136,629
Diluted (loss) earnings per weighted average common share	$	(2.62)	$	0.43	$	(3.51)	$	2.16

For the three and six months ended June 30, 2025 and the three months ended June 30, 2024, excluded from the calculation of diluted earnings per share was the effect of adding undistributed earnings reallocated to 543,891, 683,614 and 718,748 weighted average participating RSUs, respectively, as their inclusion would have been antidilutive under the two-class method. For the six months ended June 30, 2024, participating RSUs were included in the calculations 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 three and six months ended June 30, 2025, excluded from the calculation of diluted earnings per share was the effect of adding 502,809 and 623,672 weighted average common share equivalents, respectively, related to the assumed vesting of outstanding PSUs, as their inclusion would have been antidilutive under the two-class method. For the three and six months ended June 30, 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 three and six months ended June 30, 2025 and the three months ended June 30, 2024, excluded from the calculation of diluted earnings per share was the effect of adding back $4.4 million, $8.9 million and $4.6 million of interest expense and 8,871,339, 8,871,339 and 9,146,808 weighted average common share equivalents, respectively, related to the assumed conversion of the Company’s convertible senior notes, as their inclusion would have been antidilutive under the two-class method. For the six months ended June 30, 2024, the assumed conversion of the Company’s convertible senior notes (under the if-converted method) was included in the calculation of diluted earnings per share under the two-class method.