Continuation of a point Olga made last week and was picked up and reported by Bloomberg...
Microsoft says its AI business exceeded a $37 billion annual revenue run rate. Amazon says AWS AI revenue surpassed $25 billion. Are they measuring the same thing? Read my piece to find out: deepquarry.substack.com/p/the-ai-rev...
Microsoft says its AI business exceeded a $37 billion annual revenue run rate. Amazon says AWS AI revenue surpassed $25 billion. Are they measuring the same thing? Read my piece to find out: deepquarry.substack.com/p/the-ai-rev...
The AI Revenue Puzzle
Companies increasingly report AI monetization metrics, but what do those numbers actually measure?
deepquarry.substack.com
Why did $MSFT expand its OpenAI disclosures, change the useful lives of its datacenters (with no impact on depreciation), and revise its capital expenditure outlook - all at the same time? @fmckenna.bsky.social dig into accounting in our new piece: deepquarry.substack.com/p/microsofts...
Microsoft's 2026 Annual Report: What's going on with all the accounting changes?
Microsoft's latest disclosures are a little more but still not enough to fully explain its relationship with OpenAI, its capital expenditures, and its free cash flow. We'll try to shed some light.
deepquarry.substack.com
$TSLA $1 billion $SPCX investment gain reflected a GAAP accounting election that likely improved the accounting earnings outcome. Read my latest piece! Tesla's Investment in SpaceX: The $1 Billion Accounting Choice open.substack.com/pub/deepquar...
Tesla's investment in SpaceX: The $1 Billion Accounting Choice
Tesla and Alphabet both profited from SpaceX. Their financial statements tell different stories.
open.substack.com
My H1 2026 update on SEC Rule 10D-1 clawback disclosures is out: a comparable number of error-correction disclosures in Q2 2026 and Q2 2025, recovery-analysis practices remain uneven. Also, are some clawbacks after immaterial corrections a red flag? open.substack.com/pub/deepquar...
SEC Compensation Recovery Rule: Restatements and Related Clawbacks, Quarterly Update # 6
A quarterly review of compliance trends, SEC comment letters, and the complexities of recovery analysis
open.substack.com
Long SEC reviews may point to complex, hard-to-resolve issues. In my latest round up, I discuss SEC comment letters to five companies with a market cap > $1 billion. Read the full piece: Long SEC Reviews Quarterly Update # 8 open.substack.com/pub/deepquar...
Long SEC Reviews Quarterly Update # 8
Long SEC reviews reflect ongoing regulatory concerns over a company’s financial disclosures or accounting practices, signaling potential risks or uncertainties to investors.
open.substack.com
Indeed... I can see IT guys thinking tokens were "brilliant" and never running the metric as a measure of cost past accounting...
My new roundup: OpenAI’s shifting IPO timeline, hard-to-trace AI operating costs, the SEC’s questions about Oracle’s 209% capex jump, and contrasting data-center CAM outcomes. Between Headlines and Numbers: AI’s Unanswered Questions open.substack.com/pub/deepquar...
Between Headlines and Numbers: AI’s Unanswered Questions
OpenAI’s uncertain IPO timeline, the turning tide of tokenmaxxing, the SEC’s questions about Oracle’s soaring capex, and different CAM approaches for data-center financing.
open.substack.com
Friend and frequent collaborator @ousvyatsky.bsky.social has done an excellent job deconstructing the non-GAAP "Free cash flow" metric. Unlike most non-GAAP metrics, FCF typically is lower than its GAAP counterpart becase its most common adjustment is to take out CAPEX. Unless you are Coke!
What does "free cash flow" actually mean? While most companies start with operating cash flow less CAPEX, the details — and comparability — vary far more than many investors realize. @fmckenna.bsky.social Free Cash Flow Under the Microscope open.substack.com/pub/deepquar...
Free Cash Flow Under the Microscope
Evidence from 238 non-GAAP cash flow metrics and 562 reconciling adjustments reveals where S&P 500 companies diverge in their free cash flow presentations.
open.substack.com
While volume of SEC comments remains below historical levels, recent SEC comment letters tied to restatements, controls, and accounting estimates suggest that Corp Fin accounting scrutiny is still ongoing: open.substack.com/pub/deepquar...
Recent SEC Comment Letters Point to Continued Accounting Scrutiny
Recent restatements and ICFR revisions attributed to comment letters suggest that SEC scrutiny continues even as public comment-letter activity remains below historical levels.
open.substack.com
Tax valuation allowances are creating multi-billion-dollar earnings swings — and SEC filings often reveal the warning signs before the accounting hit arrives. My latest: deepquarry.substack.com/p/tax-valuat...
Tax Valuation Allowances: Identifying the Next Releases — and the Next Multi-Billion Dollar Charges
Using SEC filings to identify companies that may face significant future tax-related earnings swings.
deepquarry.substack.com
$MSTR sold 32 bitcoins for the total proceeds of $2.5 million. We asked last year: what would it take for Saylor to start selling? And what happens to the “buy-and-hold-forever” narrative? @fmckenna.bsky.social open.substack.com/pub/deepquar...
MicroStrategy: Part 2 of answering questions about crypto accounting, cashflow, CAMT, convertibles
This is a team effort between The Dig and Deep Quarry to go deeper into the questions behind the headlines.
open.substack.com
I learned a long time ago from "some guy" that the only way to keep a secret among 100 people is to kill 99 of them....
SpaceX is to lower valuation target, "after consultations with advisers and investors, the people said, asking not to be identified as the information isn’t public." @fmckenna.bsky.social @annmlipton.bsky.social Just curious - what does confidential mean nowdays? www.bloomberg.com/news/article...
SpaceX Lowers IPO Valuation Target to at Least $1.8 Trillion
SpaceX is currently targeting a valuation of at least $1.8 trillion in its initial public offering, according to people familiar with the matter, as Elon Musk’s rocket and artificial intelligence comp...
bloomberg.com
Can investors learn anything about SEC concerns before SEC comment letters become public? SpaceX provides an interesting case study. Our latest with @fmckenna.bsky.social : deepquarry.substack.com/p/our-analys...
Our analysis of the SpaceX draft to public prospectus
SEC comment letters are confidential until after the IPO, but changes made by SpaceX base don the SEC's review may provide insights into the SEC's disclosure priorities.
deepquarry.substack.com
$SMCI working capital and liquidity trends in two charts. With @fmckenna.bsky.social deepquarry.substack.com/p/super-micr...
Ford and GM recorded receivables for tariff-related refunds, but Tesla did not. Some analysts were surprised by suddenly conservative Tesla accounting - but is there a reason? @fmckenna.bsky.social Recent Tax Accounting Developments: Tariff Refunds and more: open.substack.com/pub/deepquar...
Recent Tax Accounting Developments: Tariff Refunds, CAMT Reversals, and Hyatt’s Loyalty Program Tax Dispute
Recent SEC filings reveal the accounting impact of tariff refunds, valuation allowance reversals, and tax disputes.
open.substack.com
My most recent update: three companies disclosed Unresolved SEC Comments in Q1 2026. And with the five-months dissemination backlog at the SEC, we may not see SEC comments on EDGAR for months. @fmckenna.bsky.social Long SEC Reviews Quarterly Update # 7 open.substack.com/pub/deepquar...
Long SEC Reviews Quarterly Update # 7
Long SEC reviews reflect ongoing regulatory concerns over a company’s financial disclosures or accounting practices, signaling potential risks or uncertainties to investors.
open.substack.com
The DOJ indictment involves Super Micro's employees but the company itself is not named as a defendant. Yet, the indictment raises a broader set of accounting, disclosure, and compliance issues. Super Micro: What can we learn from the DOJ indictment? open.substack.com/pub/deepquar...
Super Micro: What can we learn from the DOJ indictment?
Employee indictments, shifting disclosures, and inventory pressures raise broader questions about controls, margins, and the durability of international growth.
open.substack.com
*snort* www.bloomberg.com/news/article...
Elon Musk Misled Twitter Investors Before 2022 Buyout, Jury Says
Elon Musk defrauded Twitter Inc. investors when he disparaged the company in 2022 in an effort to buy the social media platform for a lower price than his original $44 billion bid, a jury concluded.
bloomberg.com
Days Payable Outstanding (DPO) metric is increasing for hyperscalers. @fmckenna.bsky.social and I explain why: AI data center construction: Using deal structure to measure and analyze the financial statement impact open.substack.com/pub/deepquar...
AI data center construction: Using deal structure to measure and analyze the financial statement impact
It's a two-part series on top data construction projects and how financial statement impact follows structure. Part 1: On/Off balance sheet and liabilities. Part 2: CIP and cash flow.
open.substack.com
The latest from my friend and frequent collaborator @ousvyatsky.bsky.social and I. open.substack.com/pub/thedig/p...
AI data center construction: Using deal structure to measure and analyze the financial statement impact
It's a two-part series on top data construction projects and how financial statement impact follows structure. Part 1: On/Off balance sheet and liabilities. Part 2: CIP and cash flow.
open.substack.com
Interesting piece about limitations of Jarkesy vs. SEC. @fmckenna.bsky.social news.bloombergtax.com/tax-insights...
Tax Court Ruling Makes Going to Trial Under ‘Jarkesy’ Complex
Opinion: Taxpayers that believe they can get a jury trial under Jarkesy v. SEC to fight security fraud penalties may want to think twice before pursuing that option.
news.bloombergtax.com
Kyndryl's 10-K/A: no restatement but more disclosure around cash management practices and a new hotline-related material weakness that was not reported in the NT filing. Kyndryl’s 10-K/A: No Restatement, But Control and Disclosure Questions Remain open.substack.com/pub/deepquar...
Kyndryl’s 10-K/A: No Restatement, But Control and Disclosure Questions Remain
Amended filing clarifies cash management practices and reports several material weaknesses.
open.substack.com
Kyndryl’s 10-K/A: No Restatement, But Control and Disclosure Questions Remain open.substack.com/pub/deepquar...
Kyndryl’s 10-K/A: No Restatement, But Control and Disclosure Questions Remain
Amended filing clarifies cash management practices and reports several material weaknesses.
open.substack.com
Sunday Insights: A bigger chunk of the SpaceX IPO is likely to be reserved for individual investors than is customary due to CEO Elon Musk’s following. Read more from Valida Pau and Cory Weinberg 👇 https://thein.fo/4tECpXH
SpaceX IPO Could Tap Hordes of Individual Investors
A potential record-setting SpaceX initial public offering has sent Wall Street into overdrive. Main Street wants a cut of the action. Bankers and institutional investors who talk to SpaceX executives ...
theinformation.com
What does EY CAM say about Meta's accounting? And did you know that Tesla also got a new CAM related to 2025 CEO award? Co-authored with @fmckenna.bsky.social Beyond the hype: Auditor EY highlights its efforts to confirm Meta’s data center accounting open.substack.com/pub/deepquar...
Beyond the hype: Auditor EY highlights its efforts to confirm Meta’s data center accounting
The WSJ's Jon Weil called it a “red flag”, but we dig into why and how EY documented the CAM and how decision useful it is, or isn't.
open.substack.com
Kyndryl says that, following the internal review, it does not expect a restatement. But, as @fmckenna.bsky.social has written in the past, no restatement does not always mean the end of the SEC probe. My new piece: deepquarry.substack.com/p/kyndryl-ho...
Kyndryl Holdings: when free cash flow drivers become a disclosure risk
How free cash flow narrative may trigger a regulatory probe.
deepquarry.substack.com
ADM enforcement action: why cooperation matters, SEC comment letters and materiality, and voluntary cut in executive pay: read my new piece! @fmckenna.bsky.social deepquarry.substack.com/p/from-immat...
From “immaterial revisions” to enforcement action: the ADM case study
What ADM’s $40 million settlement, executive pay decisions, and a pending case against its former CFO tell about enforcement landscape
deepquarry.substack.com