VSE Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Earnings Per Share

Earnings Per Share

6 Months Ended

Jun. 30, 2026

Basic earnings per share ("EPS") is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period, with shares issued during the period weighted based on the portion of time they were outstanding. Basic EPS includes the equity issued as part of the purchase consideration for the PAG Acquisition, weighted from the date of issuance. The calculation of diluted earnings per common share includes the dilutive effects of the assumed vesting of outstanding stock-based awards and the settlement of prepaid stock purchase contracts, which were issued in connection with the Company's February 2026 issuance of tangible equity units. See Note (13) "Common Stock and Tangible Equity Unit Public Offerings" for further discussion of the prepaid stock purchase contracts, which are assumed to be outstanding at the minimum settlement rate of 0.2171 shares per prepaid stock purchase contract in determining weighted-average shares for basic EPS. Additional shares are included in determining weighted-average shares for diluted EPS based on the imputed settlement rate utilizing the volume weighted-average price of the Company's common stock during the period not to exceed 0.2660 shares per prepaid stock purchase contract, if dilutive. The antidilutive common stock equivalents excluded from the diluted per share calculation are not material.

The weighted-average number of shares outstanding used to compute basic and diluted EPS were as follows:


	Three months ended June 30,		Six months ended June 30,
	2026	2025	2026	2025
Effect of basic shares:
Common shares outstanding	28,057,283	20,670,239	27,171,753	20,644,215
Prepaid stock purchase contracts at minimum settlement rate	1,997,715	—	1,611,416	—
In-kind share payment for PAG acquisition	886,790	—	445,845	—
Basic weighted average common shares outstanding	30,941,788	20,670,239	29,229,014	20,644,215

Effect of dilutive shares:
Restricted stock awards	63,391	61,158	99,133	91,764
Prepaid stock purchase contracts at volume weighted-average price	380,300	—	291,346	—
Total dilutive shares	443,691	61,158	390,479	91,764
Diluted weighted average common shares outstanding	31,385,479	20,731,397	29,619,493	20,735,979