Earnings Per Share

6 Months Ended

Jun. 30, 2024

Note 16. Earnings Per Share

The Company presents basic EPS and diluted EPS for our common stock. Basic EPS excludes potential dilution and is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if shares of common stock were issued pursuant to our stock-based compensation awards. For the three and six months ended June 30, 2024, diluted EPS also reflects the potential dilution that could occur assuming that all units in P10 Intermediate that were granted as a result of the WTI acquisition are converted to shares of Class A common stock. Because the impact of these items is generally anti-dilutive during periods of net loss, there is no difference between basic and diluted loss per common share for periods with net losses.

The Company has Class A and Class B shares outstanding, therefore follows the two-class method. However, the shares are entitled to the same amount of the Company's earnings therefore the earnings per share calculation for Class A and Class B shares will always be equivalent.

The following table presents a reconciliation of the numerators and denominators used in the computation of basic and diluted EPS:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,

	2024		2023		2024		2023
Numerator:
Numerator for basic calculation—Net income
Numerator for basic calculation—Net income attributable to P10	$	6,993	$	1,763	$	12,014	$	2,368
Adjustment for:
Net income attributable to noncontrolling interests in P10 Intermediate		397		339		619		503
Numerator for earnings per share
Numerator for earnings per share assuming dilution	$	7,390	$	2,102	$	12,633	$	2,871
Denominator:
Denominator for basic calculation—Weighted- average shares outstanding, basic attributable to P10		112,359		116,168		113,744		116,063
Weighted shares assumed upon exercise of partnership units		3,917		3,917		3,917		3,917
Weighted shares assumed upon exercise of stock options		3,822		3,789		3,808		3,938
Denominator for earnings per share assuming dilution		120,098		123,874		121,469		123,918
Earnings per Class A share—basic	$	0.06	$	0.02	$	0.11	$	0.02
Earnings per Class A share—diluted	$	0.06	$	0.02	$	0.10	$	0.02
Earnings per Class B share—basic	$	0.06	$	0.02	$	0.11	$	0.02
Earnings per Class B share—diluted	$	0.06	$	0.02	$	0.10	$	0.02

The computations of diluted earnings per share on a weighted average basis would exclude 11.9 million and 11.1 million options for the three and six months ended June 30, 2024, respectively, because the options were anti-dilutive. The computations of diluted earnings per share on a weighted average basis exclude 5.2 million and 4.0 million options for the three and six months ended June 30, 2023, respectively, because the options were anti-dilutive.