What Is an Earnings Report and Why Does It Matter?

What Is an Earnings Report?

By Kristi Waterworth – Updated Jan 14, 2026 at 9:47 PM EST | Fact-checked by Frank Bass

Key Points

Earnings reports, mandated by the SEC, include detailed financials such as income and cash flow.
Investors should monitor key metrics in these reports, including revenue growth and net margin.
Studying earnings reports is crucial for assessing company and industry health over time.

Few tools are as important for investors making buy, sell, or hold decisions as an earnings report. Often known by the names of the most common forms, the 10-Q or 10-K, earnings reports are at the heart of every investment decision. Read on to learn more about these vital forms.

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An infographic defining and explaining what earnings reports are and how they work. — Image source: The Motley Fool.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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