Net Income Per Share

12 Months Ended

Dec. 31, 2024

(16)

Net Income per Share

Basic net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted net income per share of Class A common stock is computed by dividing net income attributable to GEN Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive elements. Diluted net income per share for any periods for which loss per share is presented is the same as basic net income per share as the inclusion of potentially issuable shares would be antidilutive.

Prior to the amendment and restatement of the Operating Company’s LLC Agreement in connection with the IPO, the Operating Company’s membership interests were defined solely as percentage interests as the LLC Agreement did not define a number of membership units outstanding or authorized. The basic and diluted net income per share for the year ended December 31, 2023 represents the brief period between the IPO listing on June 28, 2023 through December 31, 2023. For the year ended December 31, 2024, the full twelve months are used to calculated basis and diluted income per share.

A calculation of the numerator and denominator used in the calculation of basic and diluted net income per share of Class A common stock is as follows:



	Year ended December 31,
(in thousands, except per share data)	2024		2023

Numerator:
Net income	$	4,532	$	2,526
Less: Net income attributable to non-controlling interest		3,940		2,202
Net income attributable to Class A common stockholders	$	592	$	324
Denominator:
Weighted-average shares of Class A common stock outstanding - basic		4,668		4,140
Weighted-average shares of Class A common stock outstanding - diluted		4,668		4,233

Net income per share of Class A common stock - basic	$	0.13	$	0.08
Net income per share of Class A common stock - basic and diluted	$	0.13	$	0.08

For the year ended December 31, 2024, 27,886,912 shares of Class B common stock was excluded from the weighted-average in the computation of diluted net income per share of Class A common stock because the effect would have been anti-dilutive. For the year ended December 31, 2023, 28,141,566 shares of Class B common stock was excluded from the weighted-average in the computation of diluted net income per share of Class A common stock because the effect would have been anti-dilutive.

Shares of Class B common stock do not share in the earnings or losses of GEN Inc. and are therefore not participating securities. Separate calculations of basic and diluted net income per share for Class B common stock has not been presented.