U.S. GAAP requires the Company to use the two-class method in computing basic earnings (loss) per share since holders of the Company’s restricted stock have the right to share in dividends, if declared, equally with common stockholders. These participating securities affect the computation of both basic and diluted earnings (loss) per share during periods of net income or loss. For a majority-owned subsidiary, its basic and diluted earnings (loss) per share are first computed separately. Then, the Company’s proportionate share in that majority-owned subsidiary’s earnings is added to the computation of both basic and diluted earnings (loss) per share at a consolidated level.

A summary of the numerator and denominator of the basic and diluted earnings per common share is presented below:


	Three Months Ended							Three Months Ended
	March 31, 2025							March 31, 2024
	Income			Shares (a)		Per Share		Income			Shares (a)		Per Share
	(Numerator)			(Denominator)		Amount		(Numerator)			(Denominator)		Amount
Net income	$	74,230						$	56,956
Less: Net income attributable to redeemable noncontrolling interests		—							(10,149	)
Less: Net (income) loss attributable to noncontrolling interests		(4,546	)						804
Net income attributable to HCI		69,684							47,611
Less: Income attributable to participating securities		(3,103	)						(1,218	)
Basic Earnings Per Share:
Income allocated to common stockholders		66,581			10,286	$	6.47		46,393			9,751	$	4.76
Effect of Dilutive Securities:
Stock options		—			350				—			280
Convertible senior notes		1,873			2,142				1,640			2,282
Warrants		—			7				—			305
Diluted Earnings Per Share:
Income available to common stockholders and assumed conversions	$	68,454			12,785	$	5.35	$	48,033			12,618	$	3.81

(a)

Shares in thousands.