Earnings Per Share

12 Months Ended

Dec. 31, 2024

Earnings Per Share

Earnings Per Share

Note 19. Earnings Per Share

Westrock Series A Preferred Shares and our RSUs issued under our 2022 Equity Plan are considered participating securities as they receive non-forfeitable rights to dividends at the same rate as Common Shares. As participating securities, we include these instruments in the computation of earnings per share under the two-class method described in ASC 260 Earnings per Share (“ASC 260”).

The dilutive effect of Westrock Series A Preferred Shares and the Convertible Notes is calculated using the if-converted method, which assumes an add-back of any accretion on preferred shares and interest expense associated with the Convertible Notes to net income attributable to shareholders as if the securities were converted to Common Shares at the beginning of the reporting period (or at the time of issuance, if later), and the resulting Common Shares being included in the number of weighted-average units outstanding.

The dilutive effect of time-based option awards and RSUs is calculated using the treasury stock method, while performance-based awards are treated as contingently issuable.

The following potentially dilutive securities were excluded from the computation of diluted shares for the periods indicated because their inclusion would have an anti-dilutive effect on dilutive earnings (loss) per common share.

	Year Ended December 31,
(Thousands)	2024		2023		2022
Warrants		14,298		19,149		19,373
Restricted stock units		2,536		1,917		1,602
Options		1,299		1,445		3,217
If-converted securities		30,514		23,551		23,588

The following table sets forth the computation of basic and diluted earnings per share under the two-class method for the periods indicated.

	Year Ended December 31,
(Thousands, except per share data)	2024		2023		2022
Basic Earnings per Common Share
Numerator:
Net income (loss) attributable to common shareholders	$	(79,949)	$	(34,743)	$	(77,633)
Denominator:
Weighted-average common shares outstanding - basic		89,795		80,684		48,444
Basic earnings (loss) per common share	$	(0.89)	$	(0.43)	$	(1.60)
Diluted Earnings per Common Share
Numerator:
Net income (loss) attributable to common shareholders - basic	$	(79,949)	$	(34,743)	$	(77,633)
Effect of participating securities		—		—		—
Net income (loss) attributable to common shareholders - diluted	$	(79,949)	$	(34,743)	$	(77,633)
Denominator:
Weighted-average common shares outstanding - basic		89,795		80,684		48,444
Effect of dilutive participating securities		—		—		—
Effect of dilutive non-participating securities		—		—		—
Weighted-average common shares outstanding - diluted		89,795		80,684		48,444
Dilutive (loss) earnings per common share	$	(0.89)	$	(0.43)	$	(1.60)