Basic net income per share is calculated by dividing net income attributable to the common stockholders by the weighted-average shares of common stock outstanding for the period. The computation of diluted net income per share is similar to the computation of basic net income per share, except that the denominator is increased to include the number of additional shares of common stock that would have been outstanding if the dilutive potential shares of common stock had been issued, which are comprised of restricted stock units using the treasury stock method.

A reconciliation of the numerator and denominator used in the calculation of basic net income per common share follows:


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	80,668	$	28,380
Less: net loss attributable to noncontrolling interest	(27)		(92)
Net income attributable to PACS Group, Inc.	$	80,695	$	28,472
Denominator:
Weighted average common shares outstanding	157,073,382		155,177,511

Basic net income per common share	$	0.51	$	0.18

A reconciliation of the numerator and denominator used in the calculation of diluted net income per common share follows:


	Three Months Ended March 31,
	2026		2025
Numerator:
Net income	$	80,668	$	28,380
Less: net loss attributable to noncontrolling interest	(27)		(92)
Net income attributable to PACS Group, Inc.	$	80,695	$	28,472
Denominator:
Weighted average common shares outstanding	157,073,382		155,177,511
Plus: effect of diluted shares(1)	5,006,625		11,238,105
Adjusted weighted average common shares outstanding	162,080,007		166,415,616

Diluted net income per common share	$	0.50	$	0.17

(1) The diluted per share amounts do not reflect 22,690 and 16,916 common share equivalents from restricted stock units for the three months ended March 31, 2026 and 2025, respectively, because of their anti-dilutive effect.