12. Earnings (Loss) per Share

Basic earnings (loss) per share (“EPS” or “LPS”) is calculated by dividing net income or loss attributable to Target Hospitality by the weighted average number of shares of Common Stock outstanding during the period. Diluted EPS is computed similarly to basic net income per share, except that it includes the potential dilution that could occur if dilutive securities were exercised. We apply the treasury stock method in the calculation of diluted earnings per share. During periods when net losses are incurred, potential dilutive securities would be anti-dilutive and are excluded from the calculation of diluted loss per share for that period. A net loss was recorded for the three months ended March 31, 2026 and 2025. The following table reconciles net income (loss) attributable to common stockholders and the weighted average shares outstanding for the basic calculation to the net loss attributable to common stockholders and the weighted average shares outstanding for the diluted calculation for the periods indicated below ($ in thousands, except per share amounts):

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As discussed in Note 14, stock-based compensation awards were outstanding for the three months ended March 31, 2026 and 2025. These stock-based compensation awards were excluded from the computation of diluted LPS for the three months ended March 31, 2026 and 2025 because their effect would have been anti-dilutive as a net loss was recorded for the three months ended March 31, 2026 and 2025.

Shares of treasury stock have been excluded from the computation of LPS and EPS.