Earnings Per Share

9 Months Ended

Sep. 30, 2023

EARNINGS PER SHAREBasic earnings per share is computed by dividing net income applicable to Brilliant Earth Group, Inc. by the weighted average shares of Class A common stock outstanding (and Class D common stock, if outstanding) during the period. Diluted earnings per share is computed by adjusting the net income available to Brilliant Earth Group, Inc. and the weighted average shares outstanding to give effect to potentially dilutive securities. Shares of Class B and Class C common stock are not entitled to receive any distributions or dividends and are therefore excluded from this presentation since they are not participating securities.

Basic and diluted earnings per share of common stock for the three and nine months ended September 30, 2023 and 2022 have been computed as follows (in thousands, except share and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
Numerator:	2023		2022		2023		2022
Net income attributable to Brilliant Earth Group, Inc., BASIC	$	245	$	646	$	341	$	1,426
Add: Net income impact from assumed redemption of all LLC Units to common stock	1,753		5,073		2,452		11,413
Less: Income tax expense on net income attributable to NCI	(454)		(1,350)		(634)		(2,953)
Net income attributable to Brilliant Earth Group, Inc., after adjustment for assumed conversion, DILUTED	$	1,544	$	4,369	$	2,159	$	9,886

Denominator:
Weighted average shares of common stock outstanding, BASIC	12,149,770		10,884,306		11,780,905		10,571,777
Dilutive effects of:
Vested LLC Units that are exchangeable for common stock	84,727,903		84,478,855		84,661,708		84,579,316
Unvested LLC Units that are exchangeable for common stock	265,750		919,067		380,006		1,154,306
RSUs	51,497		292,234		95,846		183,490
Weighted average shares of common stock outstanding, DILUTED	97,194,920		96,574,462		96,918,465		96,488,889

BASIC earnings per share	$	0.02	$	0.06	$	0.03	$	0.13
DILUTED earnings per share	$	0.02	$	0.05	$	0.02	$	0.10

Net income attributable to the non-controlling interest added back to net income in the fully dilutive computation has been adjusted for income taxes which would have been expensed had the income been recognized by Brilliant Earth Group, Inc., a taxable entity. The weighted average common shares outstanding in the diluted computation per share assumes all outstanding LLC Units are converted and the Company will elect to issue shares of common stock upon redemption rather than cash-settle.

For the three and nine months ended September 30, 2023 and 2022, the dilutive impact of LLC Units convertible into common stock were included in the computation of diluted earnings per share under the if-converted method; the dilutive impact of unvested LLC Units and RSUs were included using the treasury stock method.

The following table presents the shares underlying RSUs and stock options for the three and nine months ended September 30, 2023 and 2022 that have been excluded from the computation of earnings per share because such impact is anti-dilutive:


	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
RSUs	3,226,891	2,250,505	3,075,461	2,039,301
Stock options	788,020	955,961	806,339	1,182,592