Quarterly Report

Quarterly reports give investors more frequent updates on how a company is performing. They typically include a condensed income statement, balance sheet and cash flow statement, along with management commentary on the period's results and outlook.

Quarterly financial statements are usually reviewed by the auditor rather than fully audited, so they carry less assurance than annual accounts.

For example, a company might report that third-quarter revenue rose 8% compared with the same quarter last year, explain the main drivers and update its forecast for the full year.

Requirements vary by country. In the United States, listed companies must file quarterly reports with the securities regulator. In some other markets, companies report half-yearly instead, with quarterly updates being optional or limited to key figures.

Quarterly reporting helps markets stay informed and react quickly to changes. Critics argue that it can encourage short-term thinking, with managers focusing on hitting quarterly targets rather than long-term value. Many companies also hold conference calls with analysts when releasing their quarterly results.