EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities using the treasury stock method.

Basic and diluted EPS are calculated as follows:



	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2019		2018		2019			2018

Net income (loss) attributable to Altisource	$	7,165	$	8,667	$	(1,863	)	$	6,103

Weighted average common shares outstanding, basic	15,897		17,033		16,133			17,184
Dilutive effect of stock options, restricted shares and restricted share units	254		542		—			485

Weighted average common shares outstanding, diluted	16,151		17,575		16,133			17,669

Earnings (loss) per share:
Basic	$	0.45	$	0.51	$	(0.12	)	$	0.36
Diluted	$	0.44	$	0.49	$	(0.12	)	$	0.35

For the nine months ended September 30, 2019 and 2018, 1.6 million and 0.8 million, respectively (1.5 million and 0.6 million for the third quarter of 2019 and 2018, respectively), stock options, restricted shares and restricted share units were excluded from the computation of EPS, as a result of the following:


•	For the nine months ended September 30, 2019 and 2018, 0.5 million and 0.3 million, respectively (0.7 million and 0.1 million for the third quarter of 2019 and 2018, respectively), stock options were anti-dilutive and have been excluded from the computation of diluted EPS because their exercise price was greater than the average market price of our common stock

•

For the nine months ended September 30, 2019 and 2018, 0.8 million and 0.5 million, respectively (0.8 million and 0.5 million for the third quarter of 2019 and 2018, respectively), stock options, restricted shares and restricted share units, which begin to vest upon the achievement of certain market criteria related to our common stock price, performance criteria and an annualized rate of return to shareholders that have not yet been met, and have been excluded from the computation of diluted EPS


•	As a result of the net loss attributable to Altisource for the nine months ended September 30, 2019, 0.3 million stock options, restricted shares and restricted share units were excluded from the computation of diluted EPS, as their impacts were anti-dilutive