Keurig Dr Pepper Inc.

6. Earnings Per Share

We compute net income per common share using a two-class method when shares are issued that meet the definition of participating securities. We began using the two-class method in the second quarter of 2026 due to the issuance of our Convertible Preferred Stock. The Preferred Investors are entitled to participate in dividends declared on the common shares on an as-converted basis, and the Preferred Investors do not participate in losses.

Basic EPS reflects net income attributable to common shareholders after consideration of participating securities. Diluted EPS reflects net income attributable to common shareholders divided by the weighted average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method (for stock-based awards) or the “if-converted” method (for participating securities). The weighted average number of common shares is computed independently for each quarter-to-date and year-to-date period.

The following table presents our basic and diluted EPS and shares outstanding per common share:

(1)The net income allocated to Preferred Investors in a given period, computed independently for each quarter-to-date and year-to-date period, is the greater of i) dividends declared to the Preferred Investors, or ii) the net income attributable to the Preferred Investors as a participating security. For the third quarter of 2026, the allocation of net income to the Preferred Investors as a participating security were greater. For the first nine months of 2026, dividends declared to the Preferred Investors were greater.