Unvested restricted stock awards, unvested restricted units, unvested performance stock awards and unexercised stock options are excluded from the computation of diluted earnings per share when the Company recognizes a net loss for the applicable period or due to their anti-dilutive effect. For the three and six months ended June 30, 2026, approximately 5 million of potentially dilutive shares were excluded from the calculation of diluted earnings per share for each period. For three and six months ended June 30, 2025, less than 1 million potentially dilutive shares were excluded for each period.

Basic and diluted earnings per share are as follows (in millions, except share and per share data):


	Three months ended June 30,						Six months ended June 30,
	2026			2025			2026			2025
Numerator:
Net (loss) income attributable to DNOW Inc.	$	(21	)	$	14		$	(65	)	$	35
Less: net income (loss) attributable to participating securities		—			(1	)		—			(1	)
Net (loss) income attributable to DNOW Inc. stockholders	$	(21	)	$	13		$	(65	)	$	34
Denominator:
Weighted average basic common shares outstanding		182,476,733			105,457,557			184,012,539			105,715,550
Effect of dilutive securities		—			543,742			—			655,661
Weighted average diluted common shares outstanding		182,476,733			106,001,299			184,012,539			106,371,211
(Loss) earnings per share attributable to DNOW Inc. stockholders:
Basic	$	(0.11	)	$	0.13		$	(0.35	)	$	0.32
Diluted	$	(0.11	)	$	0.13		$	(0.35	)	$	0.32

Under ASC Topic 260, “Earnings Per Share”, the two-class method requires a portion of net income attributable to DNOW Inc. to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends or dividend equivalents, if declared. Net loss is not allocated to unvested awards in periods the Company determined that those shares are not obligated to participate in losses. For the periods that the Company recognized net income, net income attributable to these participating securities was excluded from net income attributable to DNOW Inc. stockholders in the numerator of the earnings per share computation.

10. Earnings Per Share