What Is a 10-Q?

The 10-Q is a quarterly financial report that public companies file three times per year (for Q1, Q2, and Q3 — the fourth quarter is covered by the annual 10-K). It contains unaudited financial statements and an update from management on business developments, legal proceedings, and risk factors since the last filing.

Why It Matters

The 10-Q provides up-to-date financial data between annual reports. Investors use 10-Qs to track revenue trends, margin changes, and any new disclosures that may affect their view of the company. The lack of an independent audit means the numbers can be revised.

Key Sections

• › Condensed financial statements
• › MD&A — quarterly comparison to prior year
• › Changes in risk factors
• › Legal proceedings updates
• › Management certifications (Sarbanes-Oxley)

Questions This Filing Answers

• ? What was the company's revenue this quarter?
• ? How does this quarter compare to last year?
• ? Did anything significant change in the business?
• ? Are there any new lawsuits or regulatory issues?