ELI5: 10-Q Report

Advanced Definition
Last updated: Jul 27, 2023

10-Q - The Company's Quarterly Update

Imagine you have a magical diary that keeps you updated on the latest adventures of your favorite characters. Well, a 10-Q is like that magical diary for companies! It's a way for them to share their recent financial adventures and performance with everyone. Don't worry; I'll explain it in simple terms using our magical diary example!

💡 Key Ideas

  • Quarterly Financial Updates: A 10-Q report is a quarterly filing made by public companies with the Securities and Exchange Commission (SEC). It provides a snapshot of the company's financial performance and operational highlights during the past three months.

  • Contents of 10-Q Reports: The report typically includes financial statements like income statements, balance sheets, and cash flow statements, along with operational highlights and discussions of potential risks and challenges.

  • Usage: 10-Q reports are used by investors, analysts, and stakeholders to track a company's recent financial health and progress, helping them make informed decisions about their investments or business relationships.

  • Comparison with 10-K Reports: While 10-K reports provide more comprehensive annual financial information, 10-Q reports offer more frequent updates, allowing stakeholders to stay current with a company's performance between annual filings.

  • Regulatory Requirement: Companies listed on stock exchanges and under SEC regulation are required to file 10-Q reports to provide transparency and keep the public informed about their financial activities on a regular basis.

The Magical Diary Scenario

Think of the 10-Q as a special magical diary that companies write in every three months. Just like a diary, it contains all the recent events and financial details of the company, helping everyone stay up-to-date.

Making Sense of the 10-Q

Okay, let's break it down further:

What is a 10-Q?

The 10-Q is a quarterly report that companies create to update everyone on their latest financial adventures. It's like a magical diary that keeps track of everything that happened during the last three months.

What's Inside the 10-Q?

When you open the 10-Q, you'll find a collection of recent updates about the company's financial journey. It's like reading the latest chapters in a magical diary:

  1. Financial Results: This section shows the company's recent income (how much money they made) and expenses (what they spent) during the quarter. It's like knowing how much treasure the company found and how much they spent on their recent quests.

  2. Operational Highlights: Here, the company shares exciting recent events and achievements. It's like reading about the heroic deeds and adventures the company went through.

  3. Risks and Challenges: In this section, the company mentions potential risks and obstacles they might face in the future. It's like knowing about the dragons and monsters the company might encounter on their upcoming quests.

Who Uses the 10-Q?

The 10-Q is not just for the company's magical friends; it's for everyone! Investors, analysts, and even curious people use it to understand how the company is doing recently and what challenges they might face.

Why is the 10-Q Important?

The 10-Q is essential because it gives a snapshot of the company's recent financial health and progress. It's like having a magical update on what the company has been up to and how they're doing compared to the past. Investors use it to see if the company is performing well or if there are any areas of concern.


The 10-Q is like a magical diary that shares the company's latest financial adventure every three months. It's a quick update on their recent income, expenses, and achievements, as well as potential challenges ahead. So, next time you come across a 10-Q, you'll know it's not just a diary - it's a magical update on the company's recent financial journey!