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Net Income Per Share
 9 Months Ended
Sep. 30, 2024
Earnings Per Share [Abstract]  
Net Income Per Share
12.    NET INCOME PER SHARE
As of September 30, 2024, 47,442,533 shares of AFG's common stock (par value $0.01) were issued and outstanding. Common shares outstanding increased by 2,247,163 during the nine months ended September 30, 2024, primarily due to shares issued in connection with the July 31, 2024, acquisition of Beat.
Earnings Per Share Calculation
The numerator of the basic and diluted earnings per share computation represents net income (loss) attributable to common stockholders adjusted by the retained earnings impact of the noncontrolling adjustment to redemption value under ASC 480. The redemption value adjustment is further described in the Redeemable Noncontrolling Interest section of Note 1. Business and Basis of Presentation.
The following table provides a reconciliation of net income attributable to common stockholders to the numerator in the basic and diluted earnings per share calculation, together with the resulting earnings per share amounts:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Net income (loss) attributable to common stockholders$(28)$66 $(8)19 
Adjustment to redemption value (ASC 480)(2)— (3)— 
Numerator of basic and diluted EPS$(30)$66 $(11)19 
Per Share:
Basic$(0.63)$1.44 $(0.23)$0.42 
Diluted$(0.63)$1.41 $(0.23)$0.41 
The denominator of the basic earnings per share computation represents the weighted average common shares outstanding plus vested performance and restricted stock units (together, "Basic Weighted Average Shares Outstanding"). The denominator of diluted earnings per share adjusts the Basic Weighted Average Shares Outstanding for all potential dilutive common shares outstanding during the period. All potential dilutive common shares outstanding consider common stock deliverable pursuant to warrants, unvested restricted stock units and performance stock units granted under existing compensation plans. Additionally, as further described in the Redeemable Noncontrolling Interest section of Note 1, the acquisition agreements related to certain majority-owned subsidiaries include call and put options that, if exercised, would result in Ambac purchasing the remaining interests from the minority owners. Under the terms of one of those agreements, Ambac may elect to settle its purchase with Ambac shares which have also been considered in potential dilutive commons shares outstanding.
The following table provides a reconciliation of the weighted average shares denominator used for basic net income per share to the denominator used for diluted net income per share:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Basic weighted average shares outstanding denominator47,688,986 45,635,373 46,580,518 45,652,555 
Effect of potential dilutive shares :
Restricted stock units— 125,035 — 152,431 
Performance stock units (1)
— 1,050,327 — 981,457 
Diluted weighted average shares outstanding denominator 47,688,986 46,810,735 46,580,518 46,786,443 
Anti-dilutive shares excluded from the above reconciliation:
Restricted stock units
470,482 125,035 480,944 127,149 
Performance stock units (1)
515,035 — 515,238 51,909 
(1)    Performance stock units are reflected based on the performance metrics through the balance sheet date. Vesting of these units is contingent upon meeting certain performance metrics. Although a portion of these performance metrics have been achieved as of the respective period end, it is possible that awards may no longer meet the metric at the end of the performance period.