(LOSS) EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2020

Basic (loss) earnings per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted net loss per share excludes all dilutive securities because their impact would be anti-dilutive, as described below.

Basic and diluted (loss) earnings per share are calculated as follows:


	Three months ended September 30,				Nine months ended September 30,
(in thousands, except per share data)	2020		2019		2020		2019

Net (loss) income attributable to Altisource	$	(13,237)	$	7,165	$	(59,948)	$	(1,863)

Weighted average common shares outstanding, basic	15,637		15,897		15,578		16,133
Dilutive effect of stock options, restricted shares and restricted share units	—		254		—		—

Weighted average common shares outstanding, diluted	15,637		16,151		15,578		16,133

(Loss) earnings per share:
Basic	$	(0.85)	$	0.45	$	(3.85)	$	(0.12)
Diluted	$	(0.85)	$	0.44	$	(3.85)	$	(0.12)

For both the nine months ended September 30, 2020 and 2019, 1.6 million (1.4 million and 1.5 million for the third quarter of 2020 and 2019, respectively) stock options, restricted shares and restricted share units were excluded from the computation of (loss) earnings per share, as a result of the following:

•As a result of the net loss attributable to Altisource for the nine months ended September 30, 2020 and 2019, 0.2 million and 0.3 million, respectively (0.2 million for the third quarter of 2020) stock options, restricted shares and restricted share units in each period were excluded from the computation of diluted loss per share, as their impacts were anti-dilutive

•For both the nine months ended September 30, 2020 and 2019, 0.5 million (0.3 million and 0.7 million for the third quarter of 2020 and 2019, respectively) stock options were anti-dilutive and have been excluded from the computation of diluted (loss) earnings per share because their exercise price was greater than the average market price of our common stock

•For the nine months ended September 30, 2020 and 2019, 0.9 million and 0.8 million, respectively (0.9 million and 0.8 million for the third quarter of 2020 and 2019, 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 in each period have been excluded from the computation of diluted (loss) earnings per share