U.S. corporations routinely report "adjusted earnings" but the significance of these adjustments is often underappreciated. Calcbench, in collaboration with Suffolk University's Sawyer Business School, examines the size and nature of non-GAAP adjustments in its fourth annual Non-GAAP Reconciliations Report.
NEW YORK, June 26, 2025 /PRNewswire-PRWeb/ -- Calcbench, a leading interactive platform for financial data from SEC filings, with Suffolk University's Sawyer Business School, today released its annual Non-GAAP report, finding that 71 percent of the entire S&P 500 (351 companies) reported non-GAAP adjustments to Net Income or Earnings Per Share (EPS) in 2024. Of those companies that adjusted earnings, 89 percent of the time that led to higher earnings compared to GAAP net income.
This is the fourth year that Calcbench and Suffolk University have collaborated to examine how firms in the S&P 500 adjust the net income numbers calculated according to U.S. Generally Accepted Accounting Principles (GAAP).
The report shows that in 2024 there were a total of 2,249 individual reconciling items in the S&P 500. Both the average number of adjustments per firm (6.4) and the average value of reconciling items ($135 million) increased from 2023.
"Non-GAAP adjustments are widespread, growing, and here to stay." says Pranav Ghai, CEO of Calcbench. "Our report aims to demystify non-GAAP adjustments, providing raw data and analysis so that investors can assess whether these adjustments are justifiable or potentially misleading."
The report also highlights some shifts in the types of adjustments companies made in 2024. While amortization of intangible assets remains the top adjustment category, there was a notable jump in adjustments for restructuring costs.
"Accounting seniors and winterns at Suffolk University are not only taught how to extract non-GAAP data from earnings reports, but how to question non-GAAP adjustments, including investigating industry trends, as part of this research collaboration with Calcbench," said Tracey Riley, associate dean of faculty affairs, professor, accounting & business law. "Given the widespread use and acceptance of non-GAAP reporting, it's important for our future accounting professionals to understand whether non-GAAP earnings are an indicator of future performance."
About Calcbench
Calcbench is a financial data platform designed for outperformance. Founded in 2011, the company uses the latest technology to offer instant and systematic access to all the data (numbers and text) in financial statements, including the details hidden within the footnotes. Developed by former analysts and supported by a team of financial experts, Calcbench was built for data analysis looking to go deeper. Visit http://www.calcbench.com to learn more.
About Suffolk University
Suffolk University, located in historic downtown Boston, provides students with experiential and transformational learning opportunities that begin in the center of Boston, reach across the globe, and lead to extraordinary outcomes for graduates. The University is driven by the power of education, inclusion, and engagement to change lives and positively impact communities. Suffolk University offers a wide range of undergraduate and graduate programs in its College of Arts & Sciences, Sawyer Business School, and Law School.
Media Contact
Samantha Berg, Samantha Berg, 1 9175334622, [email protected], www.calcbench.com
SOURCE Samantha Berg
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