Earnings Per Share

6 Months Ended

Jun. 30, 2025

Note 13. Earnings Per Share

We compute basic earnings (loss) per share by dividing net income (loss) by the weighted-average number of common shares outstanding for the reporting period. Elanco has variable common stock equivalents relating to certain equity awards in stock-based compensation arrangements. Diluted earnings per share reflects the potential dilution that could have occurred if holders of the unvested equity awards converted their holdings into common stock. The weighted-average number of potentially dilutive shares outstanding was calculated using the treasury stock method. Potential common shares that would have had the effect of increasing diluted earnings per share (or reducing loss per share) were considered to be anti-dilutive and as such, these shares were not included in the calculation of diluted earnings (loss) per share.

Basic and diluted weighted-average shares outstanding were as follows:


	Three Months Ended June 30,		Six Months Ended June 30,
	2025	2024	2025	2024


Basic weighted-average common shares outstanding	496.6	494.2	495.9	493.7
Assumed conversion of dilutive common stock equivalents (1)	3.5	—	3.7	—
Diluted weighted-average shares outstanding	500.1	494.2	499.6	493.7

(1)For the three months ended June 30, 2025 and 2024, approximately 3.7 million and 3.5 million, respectively, of potential common shares were excluded from the calculation of diluted weighted-average shares outstanding because their effect was anti-dilutive. For the six months ended June 30, 2025 and 2024, approximately 3.3 million and 3.5 million, respectively, of potential common shares were excluded from the calculation of diluted weighted-average shares outstanding because their effect was anti-dilutive.