Form 10-Q: Meaning, Deadline, Components & Importance

All publicly traded companies must file SEC Form 10-Q, a detailed financial performance report, with the Securities and Exchange Commission (SEC) every quarter. Businesses are obliged to provide pertinent financial data about their company activities in the 10-Q. Generally speaking, the 10-Q is an unaudited report. For each of the first three quarters of the business’s fiscal year, a 10-Q needs to be submitted.

Key Takeaways

• All publicly traded companies are required to file a detailed quarterly financial performance report with the SEC on Form 10-Q.
• Financial statements, disclosures, management discussion and analysis, and internal controls for the prior quarter are all included in Form 10-Q.
• The deadline for filing Form 10-Q depends on the size of their public float; companies have 45 or 40 days to file their Form 10-Q following the end of their quarter.
• Form 10-Q, a summary of a business’s financial status, gives investors data they may utilize to assess the stock’s performance and compare it to prior periods.

• The deadline for filing Form 10-Q is determined by the number of outstanding shares of a company.
• There are three major categories to determine the deadline for filing Form 10-Q. The public float, or the percentage of outstanding shares held by the general public excluding the shares held by officials, owners, or the government. Float is a company’s freely traded common shares.
• Large companies are categorized as large accelerated filers. A company must have at least $700 million in public stock in order to be classified. Such companies have forty days from the end of the quarter to submit a 10-Q.
• Companies with a public float of at least $75 million but less than $700 million are considered accelerated filers. Companies under this category have 40 days to file the 10-Q (the 10-K can be filed a bit later).
• Lastly, companies with a public float of less than $75 million are considered non-accelerated filers. After the quarter ends, these companies have 45 days to file a 10-Q.

A 10-Q filing is divided into two sections:

Section 1: The relevant financial information for the time is shown in the first section. Condensed financial statements, management commentary, entity financial situation analysis, market risk disclosures, and internal controls are all included in this.

Section 2: All additional pertinent information is included in the second section. This covers court cases, unregistered equity securities transactions, using the money received from these sales as a profit, and defaults on senior securities. Any further information disclosed by the company is included in this section, along with exhibits.

1. Regular Updates: A company’s performance is examined more often with the quarterly Form 10-Q filing, which is filed in contrast to the annual Form 10-K. This makes it possible for investors to keep an eye on patterns and spot any notable shifts in the company’s financial status.

2. Financial Performance: The company’s profits, sales, and costs for the quarter are disclosed in the form’s unaudited financial statements. Investors need this information in order to evaluate the profitability and development prospects of the firm.

3. Management Analysis: The management discussion and analysis (MD&A) section is also included in Form 10-Q. This part offers insightful information on management’s views on the success of the firm, plans for the future, and possible threats.

4. Comparison: Form 10-Q allows investors to make comparisons between a company’s performance in the current quarter and that of prior quarters, as well as the performance of firms that are similar to it in the same industry. This comparison examination aids in determining general patterns as well as strengths and shortcomings.

5. Disclosure of Events: The form may also include information on significant events that took place during the quarter, such as legal troubles, mergers and acquisitions, or adjustments to accounting guidelines. It is essential that investors are aware of this information since it may have an influence on the company’s future success.

Public companies file a report with the SEC on SEC Form 10-Q, which is transmitted to the agency following the end of each of the first three quarters of the year. The annual report, SEC Form 10-K, covers the last quarter. It may be an important research tool for investors as Form 10-Q includes a wealth of financial information about a company’s quarterly performance, along with details on business operations, management talks, relevant market concerns, and disclosures.

Are public companies required to file Form 10-Q?

Yes, all publicly traded US companies that issue common stock and list it on exchanges must submit a Form 10-Q. The number of shares they have outstanding, stated in terms of dollar value, determines the deadline by which they must file.

What details are included in a Form 10-Q?

Unaudited financial statements, management’s discussion and analysis (MD&A), and other pertinent data on the company’s performance during the quarter are all included in Form 10-Q. This might involve important occurrences, legal challenges, and adjustments to accounting procedures.

Where can I find a company’s Form 10-Q?

A company’s Form 10-Q is available through the investor relations portion of the company’s website or through the SEC website (SEC.gov).

Is the information in a Form 10-Q audited?

No, a Form 10-Q’s financial statements are not audited. Nonetheless, businesses are required to include audited financial statements in their Form 10-K annual report.

Who signs Form 10-Q?

A properly authorized official of the registrant and the principal financial or chief accounting officer of the registrant must manually sign at least one full copy of the report filed with the Commission and one such copy submitted with each exchange. The instructions for Form 10-Q include more details.

Reference:

• Investor.gov
• U.S. Securities and Exchange Commission

Note: The information provided is sourced from various websites and collected data; if discrepancies are identified, kindly reach out to us through comments for prompt correction.