What is Form 10-Q?

2301 reads · Last updated: April 3, 2025

A 10-Q is the quarterly report filed by U.S. public companies with the SEC, containing unaudited financial statements and updates on the company’s business and risks. Companies typically file three 10-Qs per year (the fourth quarter is included in the 10-K).Main Contents:Quarterly Financial Statements: Includes balance sheet, income statement, and cash flow statement, typically unaudited.Management Discussion of Results: Shorter version of MD&A highlighting revenue trends, expenses, and operating updates.Legal Proceedings and Risk Updates: Any new or ongoing litigation, regulatory developments, or operational risks.Capital Structure Changes: Stock buybacks, new issuances, or credit agreements.Subsequent Events Disclosure: Major events occurring after the quarter-end are summarized.Common Questions:How is it different from the 10-K? It’s shorter, less comprehensive, and unaudited—but timelier.How many are filed each year? Usually three. The fourth quarter results are included in the annual 10-K.Example: Tesla’s Q3 2023 10-Q included updates on Cybertruck production, solar and energy storage revenues, and construction costs related to its Mexico Gigafactory.

Definition

Form 10-Q is a financial report that publicly traded companies are required to submit to the U.S. Securities and Exchange Commission (SEC) every quarter. This report includes information on the company's financial condition, operational performance, and risk factors, helping investors gain a comprehensive understanding of the company's operations.

Origin

The origin of Form 10-Q dates back to the implementation of the Securities Exchange Act of 1934, which mandated regular financial disclosures to protect investors. Over time, the format and content of the 10-Q have evolved to meet the needs of modern financial markets.

Categories and Features

The 10-Q form is primarily divided into three sections: financial statements, Management's Discussion and Analysis (MD&A), and risk factors. The financial statements provide the company's financial data, the MD&A offers management's analysis of the company's financial condition and results of operations, and the risk factors list potential risks that could affect the company's future performance. The advantage of the 10-Q is its timeliness and detail, but its disadvantage is that it may not be as comprehensive as the annual report (10-K).

Case Studies

For example, Apple's 10-Q report for the second quarter of 2023 showed the company's revenue growth and the impact of new product launches. Through this report, investors could see Apple's performance in global markets and the supply chain challenges it faced. Another example is Tesla, whose 10-Q report for the third quarter of 2023 detailed its expansion plans in the electric vehicle market and the achievement of production targets.

Common Issues

Common issues investors face when using the 10-Q include how to interpret changes in financial data and how to assess the impact of risk factors. A common misconception is that the 10-Q provides the same information as the annual report, but in reality, the 10-Q focuses more on quarterly changes and short-term trends.

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