Meritage Homes Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

EARNINGS PER SHARE

EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2026

Basic and diluted earnings per common share were calculated as follows (in thousands, except per share amounts):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Basic weighted average number of shares outstanding	65,787		71,456		66,573		71,684
Effect of dilutive securities:

Unvested restricted stock	344		444		361		562
Diluted average shares outstanding	66,131		71,900		66,934		72,246
Net earnings	$	90,630	$	146,879	$	145,939	$	269,685


Basic earnings per share	$	1.38	$	2.06	$	2.19	$	3.76
Diluted earnings per share	$	1.37	$	2.04	$	2.18	$	3.73

We compute Basic earnings per share by dividing net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per share gives effect to the potential dilution that could occur if securities or contracts to issue common stock that are dilutive were exercised or converted into common stock or resulted in the issuance of common stock that then shared in our earnings. In accordance with ASC 260-10, Earnings Per Share, we calculate the dilutive effect of the 2028 Convertible Notes using the "if-converted" method. As discussed in Note 7 - Senior and Convertible Senior Notes, Net in the consolidated financial statements included in our Annual Report, the Company will settle any convertible note conversions by paying cash up to the principal amount of notes and settle any additional value in cash, shares of common stock or a combination of cash and shares of common stock, at the Company’s election. As the Company will settle the principal amount of convertible notes in cash upon conversion, the convertible notes only have a dilutive impact when the average share price of the Company’s common stock exceeds the conversion price, in any applicable period.