The earnings press release often reaches the market before the 10-Q and gets picked apart by analysts and short-sellers. This audits it for the mistakes that cause trouble.
What this tool does
It checks non-GAAP measures for Reg G compliance and equal prominence, tie-out of numbers to the filing, and forward-looking safe-harbor language.
Who it's for
IR, controllers, and CFOs finalising a quarterly earnings release.
How to use it — step by step
- Paste in your release. Or work through the checklist against it.
- Check non-GAAP. Every non-GAAP measure needs a reconciliation and can't be more prominent than GAAP.
- Tie out the numbers. Release figures must match the 10-Q you're about to file.
- Confirm safe harbor. Forward-looking statements need the cautionary language.
How to read your result
The three classic misses: a non-GAAP number with no reconciliation, a figure that won't match the 10-Q, and missing safe-harbor language. Fix those before the wire.
Worked examples
The same tool behaves differently depending on what you put in. Here are 3 situations.
Non-GAAP without reconciliation
Inputs: You headline 'adjusted EBITDA'.
What the tool shows: Flags that Reg G requires a reconciliation to the nearest GAAP measure and equal-or-greater GAAP prominence.
What to do: Add the reconciliation table; lead with GAAP.
Release doesn't match the 10-Q
Inputs: A revenue figure differs by rounding or restatement.
What the tool shows: Flags the tie-out risk — mismatches invite comment letters and credibility damage.
What to do: Reconcile every headline number to the filing.
No safe-harbor language
Inputs: Guidance and forward statements included.
What the tool shows: Flags the missing cautionary statement that supports the PSLRA safe harbor.
What to do: Add the forward-looking safe-harbor paragraph.
Common questions
What's Reg G? The rule governing non-GAAP measures — reconciliation and no undue prominence.
Why audit the release separately from the 10-Q? It usually goes out first and is read hardest — errors here move the stock.
Does this replace review? No — it's a pre-flight check, not legal or audit sign-off.