GULFPORT ENERGY CORP

8. EARNINGS (LOSS) PER SHARE

Basic income or loss per share attributable to common stockholders is computed as (i) net income or loss less (ii) dividends paid to holders of preferred stock less (iii) net income or loss attributable to participating securities divided by (iv) weighted average basic shares outstanding. Diluted net income or loss per share attributable to common stockholders is computed as (i) basic net income or loss attributable to common stockholders plus (ii) diluted adjustments to income allocable to participating securities divided by (iii) weighted average diluted shares outstanding. The “if-converted” method is used to determine the dilutive impact for the Company's convertible preferred stock and the treasury stock method is used to determine the dilutive impact of unvested restricted stock.

Restricted stock awards resulted in 0.1 million dilutive shares for the three months ended March 31, 2026, and 0.2 million anti-dilutive shares for the three months ended March 31, 2025. There were 2.3 million shares of potential common stock issuable due to the Company's convertible preferred stock for the three months ended March 31, 2025. The Company redeemed all outstanding preferred stock on September 5, 2025. No convertible preferred stock was included in diluted earnings per share for the three months ended March 31, 2026.

Reconciliations of the components of basic and diluted net income (loss) per common share are presented in the table below (in thousands):

(1) Preferred stock represents participating securities because it participates in any dividends on shares of common stock on apari passu, pro rata basis. However, preferred stock does not participate in undistributed net losses. The Company redeemed all outstanding preferred stock on September 5, 2025.