EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2025

The Company applies the two-class method for computing and presenting earnings per share for each class of common stock, which allocates current period income (losses) to each class of common stock and participating securities based on dividends declared and participation rights in the remaining undistributed earnings or losses.

Basic earnings per share is computed by dividing the income (losses) allocated to each class of common stock by the related weighted-average number of shares outstanding during the period. Diluted earnings per share gives effect to all securities representing potential common shares that were dilutive and outstanding during the period for each class of common stock and excludes potentially dilutive securities whose effect would have been anti-dilutive.

Common Stock

Potential shares of Common Stock include (i) incremental shares related to the vesting or exercise of share-based compensation awards, warrants, and other options to purchase additional shares of the Company’s Common Stock calculated using the treasury stock method and (ii) incremental shares of Common Stock issuable upon the conversion of Class B Common Stock. Additionally, the basic and diluted earnings per share computations for Common Stock for the periods presented exclude unvested shares of approximately 4 million and 7 million, respectively, as their vesting is contingent upon achievement of certain performance requirements.


	Three Months Ended September 30,				Nine Months Ended September 30,
in thousands, except per share amounts	2025		2024		2025		2024
Allocation of income (loss) from continuing operations - basic	$	133,912	$	124,078	$	424,496	$	396,740
Dilutive effect	3,486		3,327		10,484		10,068
Allocation of income (loss) from continuing operations - diluted	$	137,398	$	127,405	$	434,980	$	406,808

Allocation of income (loss) from discontinued operations, net of tax - basic	$	1,512	$	(4,576)	$	(3,426)	$	(104,340)
Dilutive effect	—		—		—		—
Allocation of income (loss) from discontinued operations, net of tax - diluted	$	1,512	$	(4,576)	$	(3,426)	$	(104,340)

Weighted-average shares outstanding - basic	764,742		850,462		783,310		851,539
Dilutive effect(1)	63,706		62,399		63,185		61,757
Weighted-average shares outstanding - diluted	828,448		912,861		846,495		913,296

Income (loss) from continuing operations per share - basic	$	0.18	$	0.15	$	0.54	$	0.46
Income (loss) from continuing operations per share - diluted	$	0.17	$	0.14	$	0.51	$	0.44

Income (loss) from discontinued operations, net of tax, per share - basic	$	—	$	(0.01)	$	—	$	(0.12)
Income (loss) from discontinued operations, net of tax, per share - diluted	$	—	$	(0.01)	$	—	$	(0.11)

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(1) During the three and nine months ended September 30, 2025, 21 million shares of Common Stock, respectively, that would be dilutive were excluded from the diluted earnings per share calculations because their effects would have been anti-dilutive.

During the three and nine months ended September 30, 2024, 21 million shares and 20 million shares of Common Stock, respectively, that would be dilutive were excluded from the diluted earnings per share calculations because their effects would have been anti-dilutive.

Class B Common Stock


	Three Months Ended September 30,				Nine Months Ended September 30,
in thousands, except per share amounts	2025		2024		2025		2024
Allocation of income (loss) from continuing operations - basic	$	9,600	$	7,942	$	29,726	$	25,356
Dilutive effect	(475)		(316)		(1,451)		(1,035)
Allocation of income (loss) from continuing operations - diluted	$	9,125	$	7,626	$	28,275	$	24,321

Allocation of income (loss) from discontinued operations, net of tax - basic	$	108	$	(293)	$	(239)	$	(6,660)
Dilutive effect	—		—		—		—
Allocation of income (loss) from discontinued operations, net of tax - diluted	$	108	$	(293)	$	(239)	$	(6,660)

Weighted-average shares outstanding - basic	54,745		54,745		54,745		54,745
Dilutive effect(1)	—		—		—		—
Weighted-average shares outstanding - diluted	54,745		54,745		54,745		54,745

Income (loss) from continuing operations per share - basic	$	0.18	$	0.15	$	0.54	$	0.46
Income (loss) from continuing operations per share - diluted	$	0.17	$	0.14	$	0.51	$	0.44

Income (loss) from discontinued operations, net of tax, per share - basic	$	—	$	(0.01)	$	—	$	(0.12)
Income (loss) from discontinued operations, net of tax, per share - diluted	$	—	$	(0.01)	$	—	$	(0.11)

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(1) There were no potential shares of Class B Common Stock during the periods presented.

ADT Inc. 10-Q