US public companies must file reports with the Securities and Exchange Commission. They are free to read on sec.gov through the EDGAR system.
The 10-K
The annual report. It includes a description of the business, risk factors, management discussion and audited financial statements. Start here for any company.
The 10-Q
The quarterly report. It covers the first three quarters of the year, with less detail than the 10-K. Use it to see how things are moving.
The 8-K
A current report for major events such as a leadership change, large contract, acquisition or financial trouble. Companies must file within four business days of many events.
Other useful forms
- Form 4: insider trades.
- Proxy statement: executive pay and shareholder votes.
- S-1: a registration for new offerings.
A reading tip
You do not have to read every word. Read the business description, the risk factors and the discussion of results, then scan the numbers.
The three main forms
A 10-K is the annual report. It covers the business, risks, management discussion and audited financial statements. A 10-Q is the quarterly report, with unaudited financials for the quarter. An 8-K reports major events, such as earnings, a new contract, a change in leadership or a financing.
Where to find them
US companies file on the SEC website under EDGAR, searchable by name or ticker. Canadian companies file on SEDAR+. Company investor pages also link to filings.
What to read first
In a 10-K, read the business description, risk factors and management discussion, then the balance sheet and cash flow. In a 10-Q, compare the quarter with last year. In an 8-K, read the exhibits, since the press release is often attached.
Why filings beat promotion
Filings are legally required and reviewed by regulators. Press releases are written to sound good. Use the earnings report guide and our research steps.
Frequently asked questions
Are filings hard to read?
They are long, but you only need a few sections to start.
Keep learning about read sec
Reading is a start, practice makes it stick. Run the numbers in our investor tools, test yourself in Stock Jeopardy, or follow the start here guides to see what to read next after read sec.
Further reading: Investor.gov from the U.S. SEC and the Canadian Securities Administrators investor education site offer free, independent guides for new investors.
A guided tour of a 10-K, section by section
A 10-K can run over a hundred pages, so a plan helps. It follows a standard order. Item 1 is the business description, which says what the company sells and who buys it. Item 1A is risk factors. Item 7 is management’s discussion, where leaders explain results in their own words. Item 8 holds the financial statements and the auditor’s report. Begin with Item 1, then Item 1A, then Item 7. Only then go to the numbers.
When you reach the numbers, you will see three statements. The income statement shows sales and profit over a period. The balance sheet shows what the company owns and owes on one date. The cash flow statement shows the cash that actually came in and out. Profit and cash are not the same, so it is worth looking at both.
A small example of reading the numbers
Suppose a company reports sales of $500 million this year and $450 million last year. That is growth of 11.1%. Net income went from $40 million to $35 million. So sales rose, but profit fell. Why? The management discussion may explain it, perhaps because of higher material costs or a one time charge. Finding that explanation is the value of reading the text and not only the numbers. If debt rose from $100 million to $180 million, note that too and look for what the money was used for.
Footnotes: the quiet section worth a look
The notes to the financial statements often contain details that do not show up in headlines. They describe debt terms, legal matters, lease obligations, and how the company counts its revenue. You do not need to read every note. Scan the headings and stop at anything about debt, lawsuits, or customers that account for a large share of sales. If one customer makes up 30% of revenue, that is worth knowing.
Using 10-Q and 8-K filings to keep up
Once you have read the annual report, the 10-Q helps you follow along. Compare the latest quarter with the same quarter a year earlier, not with the one before. Seasonal businesses can look strange otherwise. The 8-K helps you spot surprises. Look at the item number at the top, which tells you the type of event, such as a leadership change or a new agreement. Then read the attached exhibit for the details.
Common mistakes when reading filings
A frequent one is trying to read everything in one sitting and giving up. Another is skipping the risk factors because they sound boilerplate. Some of the language is general, but changes from year to year can be telling. Print or save last year’s version and compare. A third mistake is trusting a summary on a social media post without checking the source. Go to the filing itself. A fourth is overlooking dates. Make sure you are reading the latest report, not an older one.
What to do next
Choose a company whose products you use. Find its latest 10-K on sec.gov. Spend thirty minutes on the business description and the risk factors, and write down three things you learned. Next, pull sales and net income for the last three years into a small table and try the free cash flow calculator with the cash flow statement. If a word trips you up, the glossary can help. This is education only, and not a recommendation about any company.
Questions people ask about SEC filings
Do I have to read every page of a 10-K?
No. Most readers start with the business description, risk factors, management discussion and financial statements. Use the table of contents to jump around. You can return to the notes later when a number needs more explanation.
What is an 8-K and why does it matter?
An 8-K reports a major event soon after it happens, such as a leadership change, an acquisition or a bankruptcy filing. It is shorter than a 10-K and can show news before it appears in a full report.
Are filings the same as company press releases?
No. Filings follow legal rules and carry penalties for false statements. Press releases are written to present the company well. Reading both can help, but the filing is usually the more complete and careful source.
Quick recap
Public companies file 10-Ks every year, 10-Qs each quarter and 8-Ks for major events. All are free on EDGAR. You do not need to read everything at once. Start with the business, risks and financial statements, and build from there.
Education only, not investment advice.
