| Earnings per Share |
Earnings per Share In the second quarter and first six months of 2025, Class B ordinary shares contingently issuable for the EPAs were evaluated and included in the diluted earnings per share computation as certain conditions were met. In the second quarter and first six months of 2024, Class B ordinary shares contingently issuable for the Equity Performance Awards were evaluated and were determined not to have any dilutive impact.
In the second quarter of 2025, we issued 24.5 million RP Holdings Class E Interests and an equal number of Royalty Pharma plc Class B ordinary which, upon vesting, are exchangeable on a one-for-one basis for Royalty Pharma plc Class A ordinary shares. We use the “if-converted” method to determine the potentially dilutive effect related to the RP Holdings Class E Interests. The following table sets forth reconciliations of the numerators and denominators used to calculate basic and diluted earnings per Class A ordinary share (in thousands, except per share amounts):
| | | | | | | | | | | | | | | | | | | | | | | | | For the Three Months Ended June 30, | | For the Six Months Ended June 30, | | 2025 | | 2024 | | 2025 | | 2024 | | Numerator | | | | | | | | | Consolidated net income | $ | 90,635 | | | $ | 194,377 | | | $ | 524,068 | | | $ | 190,104 | | | Less: Net income attributable to the Continuing Investors Partnerships | 9,671 | | | 32,906 | | | 86,429 | | | 34,445 | | | Less: Net income attributable to the Legacy Investors Partnerships | 48,943 | | | 59,467 | | | 125,792 | | | 48,877 | | Less: Net income attributable to the Founder’s Equity(1) | 963 | | | — | | | 42,440 | | | — | | | Less: Net income attributable to the RP Holdings Class E Interests Holders | 882 | | | — | | | 882 | | | — | | | Net income attributable to Royalty Pharma plc - basic | 30,176 | | | 102,004 | | | 268,525 | | | 106,782 | | | Add: Reallocation of net income attributable to Continuing Investors Partnerships from the assumed exchanges of Class B ordinary shares | 9,671 | | | 32,906 | | | 86,429 | | | 34,445 | | | Add: Reallocation of net income attributable to the Holders of RP Holdings Class E Interests from the assumed exchanges of eligible Class B ordinary shares | 26 | | | — | | | 26 | | | — | | | Net income attributable to Royalty Pharma plc - diluted | $ | 39,873 | | | $ | 134,910 | | | $ | 354,980 | | | $ | 141,227 | | | | | | | | | | | Denominator | | | | | | | | | Weighted average Class A ordinary shares outstanding - basic | 423,514 | | | 451,020 | | | 429,464 | | | 449,822 | | | Add: Dilutive effects as shown separately below | | | | | | | | | Assumed exchanges of Class B ordinary shares by Continuing Investors Partnerships | 138,348 | | | 145,849 | | | 140,151 | | | 147,330 | | | Unvested RSUs | 25 | | | 43 | | | 36 | | | 43 | | | Shares contingently issuable for the Equity Performance Awards | 48 | | | — | | | 323 | | | — | | | Assumed exchanges of eligible Class B ordinary shares by Holders of RP Holdings Class E Interests | 363 | | | — | | | 183 | | | — | | | Weighted average Class A ordinary shares outstanding - diluted | 562,298 | | | 596,912 | | | 570,157 | | | 597,195 | | | | | | | | | | | Earnings per Class A ordinary share - basic | $ | 0.07 | | | $ | 0.23 | | | $ | 0.63 | | | $ | 0.24 | | | Earnings per Class A ordinary share - diluted | $ | 0.07 | | | $ | 0.23 | | | $ | 0.62 | | | $ | 0.24 | |
(1)Amounts represent the entirety of the EPAs prior to the Internalization and only the Founder’s Equity portion after the Internalization.
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