Earnings per Share

6 Months Ended

Jun. 30, 2024

Basic earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during the period by the weighted average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is calculated by dividing the net income attributable to Cactus Inc. during that period by the weighted average number of common shares outstanding assuming all potentially dilutive shares were issued.

We use the if-converted method to determine the potential dilutive effect of outstanding CC Units and corresponding shares of outstanding Class B common stock. We use the treasury stock method to determine the potential dilutive effect of unvested stock-based compensation awards assuming that the proceeds will be used to purchase shares of Class A common stock. For our unvested performance stock units, we first apply the criteria for contingently issuable shares before determining the potential dilutive effect using the treasury stock method.

The following table summarizes the basic and diluted earnings per share calculations:


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator:
Net income attributable to Cactus Inc.—basic	$	49,828	$	24,750	$	88,793	$	67,644
Net income attributable to non-controlling interest (1)	—		—		18,432		13,114
Net income attributable to Cactus Inc.—diluted (1)	$	49,828	$	24,750	$	107,225	$	80,758
Denominator:
Weighted average Class A shares outstanding—basic	66,142		64,566		65,760		64,155
Effect of dilutive shares (2)	437		437		13,926		15,357
Weighted average Class A shares outstanding—diluted (2)	66,579		65,003		79,686		79,512

Earnings per Class A share—basic	$	0.75	$	0.38	$	1.35	$	1.05
Earnings per Class A share—diluted (1)(2)	$	0.75	$	0.38	$	1.35	$	1.02

(1)The numerator is adjusted in the calculation of diluted earnings per share under the if-converted method to include net income attributable to the non-controlling interest calculated as its pre-tax income adjusted for a corporate effective tax rate of 26.0% for the six months ended June 30, 2024 and 2023.

(2)Diluted earnings per share for the three months ended June 30, 2024 and 2023 excludes 13.4 million and 14.9 million weighted average shares of Class B common stock, respectively, as the effect would be anti-dilutive.