SOUTHWEST AIRLINES CO
For the period ended Sep 30, 2025. Filed Oct 23, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 23, 2025
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6. Net Income Per Share
- NET INCOME PER SHARE
The following table sets forth the computation of basic and diluted net income per share (in millions, except per share amounts). Basic net income per share is calculated by dividing net income by the weighted average of shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. During second quarter 2025, the Company's remaining balance of 1.25 percent Convertible Senior Notes due 2025 (the "Convertible Notes") of$1.6 billion was repaid, settling both principal and accrued interest. Due to this maturity, the Convertible Notes did not have a dilutive impact on the net income per share calculation and interest expense was not added back to the numerator for the three months ended September 30, 2025.
| Notes to Condensed Consolidated Financial Statements | Southwest Airlines Co.Notes to Condensed Consolidated Financial Statements(unaudited) |
|---|
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| NUMERATOR: | ||||
| Net income | $54 | $67 | $118 | $204 |
| Add: Interest expense | — | —(a) | —(a) | 15 |
| Net income attributable to common stockholders | $54 | $67 | $118 | $219 |
| DENOMINATOR: | ||||
| Weighted-average shares outstanding, basic | 523 | 599 | 548 | 598 |
| Dilutive effects of Convertible Notes | — | — | — | 43 |
| Dilutive effect of restricted stock units | 3 | 2 | 3 | 2 |
| Weighted-average shares outstanding, diluted | 526 | 601 | 551 | 643 |
| NET INCOME PER SHARE: | ||||
| Basic | $0.10 | $0.11 | $0.21 | $0.34 |
| Diluted | $0.10 | $0.11 | $0.21 | $0.34 |
| Antidilutive amounts excluded from calculations: | ||||
| Convertible debt | — | 44 | 20(b) | — |
| Restricted stock units | — | — | — | 1 |
(a) For the nine months ended September 30, 2025 and the three months ended September 30, 2024, Interest expense is not added back to the numerator due to the impact of the Convertible Notes being anti-dilutive.
(b) For the nine months ended September 30, 2025, the Convertible Notes were outstanding for a portion of the period and were anti-dilutive. See Note 10 for further information on the Convertible Notes.
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