SEC 10-Q Analysis
Analyze quarterly 10-Q filings for public companies to extract quarterly performance metrics, segment breakdown, and interim financial updates using the Octagon MCP server.
Prerequisites
Ensure Octagon MCP is configured in your AI agent (Cursor, Claude Desktop, Windsurf, etc.). See references/mcp-setup.md for installation instructions.
Workflow
1. Identify Analysis Parameters
Determine the following before querying:
- Ticker: Stock symbol (e.g., AAPL, MSFT, GOOGL)
- Quarter (optional): Specific quarter if not latest (Q1, Q2, Q3)
- Focus Areas (optional): Revenue, margins, segment performance, etc.
2. Execute Query via Octagon MCP
Use the octagon-agent tool with a natural language prompt:
Analyze the latest 10-Q filing for <TICKER> and extract quarterly performance metrics.
MCP Call Format:
{
"server": "octagon-mcp",
"toolName": "octagon-agent",
"arguments": {
"prompt": "Analyze the latest 10-Q filing for AAPL and extract quarterly performance metrics."
}
}
3. Expected Output
The agent returns comprehensive 10-Q analysis including:
Quarterly Metrics:
- Total Revenue (with YoY comparison)
- Net Income
- Basic and Diluted EPS
- Operating Income and Margin
- Segment Revenue Breakdown
Balance Sheet Updates:
- Cash and Equivalents
- Long-term Debt
- Liquidity Position
Source Citations:
- Specific page references from the 10-Q filing
Data Sources: octagon-financials-agent, octagon-sec-agent
4. Interpret Results
See references/interpreting-results.md for guidance on:
- Understanding quarterly vs annual comparisons
- Analyzing segment performance
- Identifying sequential trends
- Comparing to analyst expectations
Example Queries
Standard 10-Q Analysis:
Analyze the latest 10-Q filing for AAPL and extract quarterly performance metrics.
Segment Performance:
Extract product segment revenue breakdown from AAPL's latest 10-Q filing.
Margin Analysis:
Analyze operating and gross margins from MSFT's Q2 2024 10-Q filing.
YoY Comparison:
Compare GOOGL's Q3 2024 quarterly metrics to Q3 2023 from 10-Q filings.
Cash Flow Focus:
Extract quarterly cash flow metrics from AMZN's latest 10-Q filing.
Guidance Updates:
Extract any updated guidance or outlook from META's latest 10-Q filing.
10-Q Filing Structure
| Section | Content |
|---|---|
| Part I, Item 1 | Financial Statements (Unaudited) |
| Part I, Item 2 | MD&A (Management Discussion & Analysis) |
| Part I, Item 3 | Quantitative & Qualitative Disclosures |
| Part I, Item 4 | Controls and Procedures |
| Part II, Item 1 | Legal Proceedings |
| Part II, Item 1A | Risk Factors (Updates) |
| Part II, Item 2 | Unregistered Sales of Equity |
| Part II, Item 6 | Exhibits |
Key Quarterly Metrics
| Metric | Description | Comparison |
|---|---|---|
| Revenue | Quarterly sales | YoY and QoQ |
| Net Income | Quarterly profit | YoY and QoQ |
| EPS (Basic) | Earnings per share | vs Estimates |
| EPS (Diluted) | Diluted EPS | vs Estimates |
| Operating Income | Income from operations | Margin trend |
| Gross Margin | Gross profit / Revenue | vs Prior quarter |
| Operating Margin | Operating income / Revenue | vs Prior quarter |
Segment Analysis
Common segment breakdowns in 10-Q filings:
| Company | Typical Segments |
|---|---|
| AAPL | iPhone, Mac, iPad, Services, Wearables |
| MSFT | Productivity, Intelligent Cloud, Personal Computing |
| GOOGL | Google Services, Google Cloud, Other Bets |
| AMZN | North America, International, AWS |
| META | Family of Apps, Reality Labs |
10-Q vs 10-K Differences
| Aspect | 10-Q | 10-K |
|---|---|---|
| Frequency | Quarterly (Q1, Q2, Q3) | Annual |
| Financials | Unaudited | Audited |
| Detail Level | Summary | Comprehensive |
| Risk Factors | Updates only | Full disclosure |
| MD&A | Quarterly focus | Annual review |
Analysis Tips
-
Sequential comparison: Compare Q2 to Q1 (QoQ) not just YoY for trend insights.
-
Seasonality awareness: Some businesses have strong seasonal patterns - compare to same quarter prior year.
-
Guidance updates: Check MD&A for any updated full-year guidance.
-
Risk factor changes: Part II Item 1A only includes changes - review for new concerns.
-
Segment mix shifts: Watch for changes in segment contribution to total revenue.
-
Margin trends: Operating margin changes can signal pricing or cost pressures.
Use Cases
- Earnings analysis: Detailed breakdown after quarterly earnings
- Trend tracking: Monitor sequential quarter performance
- Estimate validation: Compare actual results to analyst estimates
- Guidance monitoring: Track any guidance updates or revisions
- Competitive tracking: Compare quarterly performance across peers