We calculate our basic earnings per share by dividing net income or net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share are calculated in a similar manner, but include the effect of dilutive securities. To the extent these securities are anti-dilutive, they are excluded from the calculation of earnings per share. The per share amounts were computed as follows:


	Three Months Ended				Six Months Ended
	July 4, 2026		June 28, 2025		July 4, 2026		June 28, 2025
Income available to common shareholders:
Net income	$	24,732	$	32,770	$	14,047	$	29,512

Weighted-average shares (in thousands):
Basic:
Outstanding	38,153		40,301		38,809		40,443
Partially-paid share subscriptions	259		283		519		566
Basic weighted-average shares	38,412		40,584		39,328		41,009

Diluted:
Basic from above	38,412		40,584		39,328		41,009
Incremental shares from assumed:
Exercise of stock subscription purchase rights	115		92		115		92
Exercise of stock options and awards	1,084		1,548		1,031		1,485
Diluted weighted-average shares	39,611		42,224		40,474		42,586

Net income per share:

Basic	$	.64	$	.81	$	.36	$	.72

Diluted	$	.62	$	.78	$	.35	$	.69



	Common Shares Net of Treasury Shares	Redeemable Shares	Total
Shares outstanding at January 1, 2026	31,732,003	7,737,260	39,469,263
Shares purchased	(1,271,330)	(672,561)	(1,943,891)
Shares sold	459,529	325,806	785,335
Stock subscription offering -- cash purchases	19,900	—	19,900
Options and awards exercised	452,249	—	452,249
Shares outstanding at July 4, 2026	31,392,351	7,390,505	38,782,856

On July 4, 2026, we had 38,782,856 common and redeemable shares outstanding, employee options exercisable to purchase 634,601 common shares, partially-paid subscriptions for 1,037,650 common shares and purchase rights outstanding for 357,362 common shares. The partially-paid subscriptions and stock purchase rights are what remains of the 2022 Subscription Offering discussed further below.

Beginning April 2022, the Company offered to eligible employees and non-employee directors the right to subscribe to a maximum of 2,666,667 common shares of the Company (including shares that may be issued upon the exercise of stock rights) at $18.10 per share in accordance with the provisions of The Davey Tree Expert Company 2014 Omnibus Stock Plan and the rules of the Compensation Committee of the Company’s Board of Directors. The offering period ended on August 1, 2022 and resulted in the subscription of 1,476,250 common shares for $26,720 at $18.10 per share.

Participants in the subscription offering who purchased common shares for an aggregate purchase price of less than $5 were required to pay with cash. All participants (excluding Company directors and officers) purchasing common shares for an aggregate purchase price of $5 or more had an option to finance their purchase through a down-payment of at least 10% of the total purchase price and a promissory note with a term of seven years for the balance due with interest at the greater of 2.00% or the applicable federal rate in effect as of August 1, 2022, which was 3.15%. Payments on the promissory note can be made either by payroll deductions or annual lump-sum payments of both principal and interest. Common shares purchased in the offering were pledged as security for the payment of the promissory note, and the common shares will not be issued until the promissory note is paid-in-full. Dividends will be paid on all subscribed shares, subject to forfeiture to the extent that payment is not ultimately made for the shares.

All participants in the offering who purchased in excess of $5 of common shares were granted a “right” to purchase one additional common share at a price of $18.10 per share for every three common shares purchased in the offering. As a result of the stock subscription, rights to purchase 489,169 common shares were granted. Each right may be exercised at the rate of one-seventh per year and will expire seven years after the date that the right was granted. A purchaser may not exercise a right once he or she ceases to be the Company's employee or non-employee director, as applicable.