Basic net income per share is computed by dividing net income attributable to stockholders of the Company 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.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Numerator:


Net income attributable to The Pennant Group, Inc.	$	9,637	$	6,081	$	27,238	$	20,941

Denominator:
Weighted average shares outstanding for basic net income per share	35,003		34,600		34,856		34,534
Plus: assumed incremental shares from exercise of options and assumed conversion or vesting of restricted stock(a)	1,381		670		1,194		740
Adjusted weighted average common shares outstanding for diluted income per share	36,384		35,270		36,050		35,274

Earnings Per Share:
Basic net income per common share	$	0.28	$	0.18	$	0.78	$	0.61
Diluted net income per common share	$	0.26	$	0.17	$	0.76	$	0.59


(a)						The diluted per share amounts do not reflect common share equivalents outstanding of 1,948 and 2,076 for the three and nine months ended September 30, 2026, and 2,514 and 2,061 for the three and nine months ended September 30, 2025, because of their anti-dilutive effect.