Basic and diluted earnings per share for the periods presented below were calculated as follows:

	Three Months Ended				Nine Months Ended
	July 31,				July 31,
(In thousands, except per share data)	2026		2025		2026		2025
Numerator:
Net (loss) income attributable to Hovnanian Enterprises, Inc.	$	(1,801)	$	16,615	$	18,774	$	64,532
Less: preferred stock dividends		(2,669)		(2,669)		(8,007)		(8,007)
Less: undistributed earnings allocated to participating securities		-		(233)		(160)		(1,428)
Numerator for basic (loss) earnings per share	$	(4,470)	$	13,713	$	10,607	$	55,097
Plus: undistributed earnings allocated to participating securities		-		233		161		1,428
Less: undistributed earnings reallocated to participating securities		-		(234)		(176)		(1,435)
Numerator for diluted (loss) earnings per share	$	(4,470)	$	13,712	$	10,592	$	55,090
Denominator:
Denominator for basic earnings per share – weighted average shares outstanding		6,412		6,399		6,439		6,442
Effect of dilutive securities:
Stock-based payments		-		488		401		494
Denominator for diluted earnings per share – weighted-average shares outstanding		6,412		6,887		6,840		6,936
Basic (loss) earnings per share	$	(0.70)	$	2.14	$	1.65	$	8.55
Diluted (loss) earnings per share	$	(0.70)	$	1.99	$	1.55	$	7.94

For the three months ended July 31, 2026, there were 0.3 million incremental shares attributed to nonvested stock and outstanding options to purchase common stock. These shares were not included in the computation of diluted shares outstanding, because the effect would be anti-dilutive. There were no anti-dilutive shares for the nine months ended July 31, 2026 and the three and nine months ended July 31, 2025.