11. Earnings Per Share

For the three and nine months ended September 30, 2025 and 2024, less than 1 million of potentially dilutive shares were excluded from the computation of diluted earnings per share due to their antidilutive effect.

Basic and diluted earnings per share are as follows (in millions, except share and per share data):


	Three months ended September 30,					Nine months ended September 30,
	2025			2024		2025			2024
Numerator:
Net income attributable to DNOW Inc.	$	25		$	13	$	72		$	58
Less: net income attributable to participating securities		(1	)		—		(2	)		(1	)
Net income attributable to DNOW Inc. stockholders	$	24		$	13	$	70		$	57
Denominator:
Weighted average basic common shares outstanding		105,011,966			106,314,446		105,478,443			106,540,763
Effect of dilutive securities		599,114			693,608		636,812			784,601
Weighted average diluted common shares outstanding		105,611,080			107,008,054		106,115,255			107,325,364
Earnings per share attributable to DNOW Inc. stockholders:
Basic	$	0.23		$	0.12	$	0.66		$	0.53
Diluted	$	0.23		$	0.12	$	0.66		$	0.53

Under ASC Topic 260, “Earnings Per Share”, the two-class method requires a portion of net income attributable to DNOW Inc. to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, if declared. Net income attributable to these participating securities was excluded from net income attributable to DNOW Inc. stockholders in the numerator of the earnings per share computation.