Earnings Per Share

12 Months Ended

Dec. 31, 2025

8. Earnings Per Share

Basic earnings per common share is calculated by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the assumed conversion of all potentially dilutive securities, consisting of stock options and restricted stock awards, for which the estimated fair value exceeds the exercise price, less shares which could have been purchased with the related proceeds, unless anti-dilutive. For employee equity awards, repurchased shares are also included for any unearned compensation adjusted for tax. The table below reflects the calculation of the weighted average number of common shares outstanding, on an as if converted basis, used in computing basic and diluted earnings per common share.



		Year Ended December 31,
		2025		2024		2023
Denominator:
Basic weighted average shares outstanding		27,862		29,104		29,991
Effect of dilutive stock options and restricted stock		162		167		156
Diluted weighted average shares outstanding		28,024		29,271		30,147

Diluted weighted average shares outstanding excludes the incremental effect of unvested restricted stock and shares that would be issued upon the assumed exercise of stock options in accordance with the treasury stock method. For each of the years ended December 31, 2025, 2024 and 2023, approximately 15, 20, and 52, respectively, of the Company’s restricted stock awards outstanding were excluded from the calculation of diluted earnings per share as their inclusion would have been anti-dilutive. These restricted stock awards could be dilutive in the future.

Grand Canyon Education, Inc. 10-K