| COMPUTATION OF NET INCOME PER COMMON SHARE |
COMPUTATION OF NET INCOME PER COMMON SHARE Basic net income per share is computed by dividing income from operations attributable to stockholders of The Ensign Group, Inc. by the weighted average number of outstanding common shares 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 common shares that would have been outstanding if the dilutive potential common shares had been issued.
A reconciliation of the numerator and denominator used in the calculation of basic net income per common share follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | NUMERATOR: | | | | | | | | | | | Net income | $ | 99,834 | | | $ | 84,466 | | | $ | 199,590 | | | $ | 164,819 | | | | | Less: net income attributable to noncontrolling interests | 96 | | | 70 | | | 184 | | | 146 | | | | | Net income attributable to The Ensign Group, Inc. | $ | 99,738 | | | $ | 84,396 | | | $ | 199,406 | | | $ | 164,673 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DENOMINATOR: | | | | | | | | | | Weighted average shares outstanding | 57,958 | | | 57,157 | | | 57,865 | | | 57,128 | | | | | | | | | | | | | | | Basic net income per common share: | $ | 1.72 | | | $ | 1.48 | | | $ | 3.45 | | | $ | 2.88 | | | | | | | | | | | | | | | | | | | | | | | |
A reconciliation of the numerator and denominator used in the calculation of diluted net income per common share follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | | | 2026 | | 2025 | | 2026 | | 2025 | | | | NUMERATOR: | | | | | | | | | | | Net income | $ | 99,834 | | | $ | 84,466 | | | $ | 199,590 | | | $ | 164,819 | | | | | Less: net income attributable to noncontrolling interests | 96 | | | 70 | | | 184 | | | 146 | | | | | Net income attributable to The Ensign Group, Inc. | $ | 99,738 | | | $ | 84,396 | | | $ | 199,406 | | | $ | 164,673 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DENOMINATOR: | | | | | | | | | | | Weighted average common shares outstanding | 57,958 | | | 57,157 | | | 57,865 | | | 57,128 | | | | Plus: incremental shares from assumed conversion (1) | 1,525 | | | 1,445 | | | 1,662 | | | 1,432 | | | | | Adjusted weighted average common shares outstanding | 59,483 | | | 58,602 | | | 59,527 | | | 58,560 | | | | | | | | | | | | | | | Diluted net income per common share: | $ | 1.68 | | | $ | 1.44 | | | $ | 3.35 | | | $ | 2.81 | | | | | | | | | | | | | | | | | | | | | | | |
(1) Options and restricted stock awards outstanding that were anti-dilutive and therefore excluded from the calculation of weighted average common shares outstanding were 1,377 and 1,192 for the three and six months ended June 30, 2026, respectively, and 920 and 855 for the three and six months ended June 30, 2025, respectively.
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