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Methodology · SEC filings

How to read buyback disclosures.

Companies disclose share repurchases in three places in the SEC’s EDGAR system. Each answers a different question. Knowing where to look separates retail-investor interpretation from financial-journalist coverage — most CNBC blurbs quote the authorization size; the real action is in the cash-flow statement.

The three filings that matter

1. 8-K — The authorization announcement

An 8-K is filed within 4 business days when something material happens. When a board approves a new buyback program, that 8-K tells you: the dollar limit (e.g., “$110 billion”), any time cap (e.g., “over 5 years” or “no expiration”), and whether it replaces or adds to prior authorizations.

What to watch for: “no expiration” means the company can spread repurchases over years; a time cap means a faster pace. Cumulative announcements matter — a $50B program layered on top of a $20B program with $10B remaining tells you what the runway actually is.

2. 10-K — What was actually repurchased

The annual 10-K contains the cash-flow-from-financing statement. The line labeled “repurchases of common stock” or similar shows the dollar amount of share repurchases in the fiscal year. This is the single number that matters most — authorizations are intent; this is execution.

What to watch for: compare to the prior fiscal year (did the pace accelerate or slow?) and to free cash flow (is the company returning earned cash or borrowing to fund buybacks?).

3. 10-Q Issuer Purchases table

Each 10-Q contains a table showing repurchases by month for the quarter: shares purchased, average price, total purchased, and program-to-date authorization remaining. This gives the most granular view — accelerations mid-quarter, pauses during volatility, etc.

What to watch for: when stocks fell in early 2025, some aggressive boards accelerated buybacks to capture the discount; others paused, worried about balance-sheet flexibility. The 10-Q table shows which side a company took.

Common distortions

Gross vs net buybacks

Companies report gross repurchases — dollars spent buying back stock. But if the same company issued $5B of new stock via stock-based compensation in the same year and repurchased $10B, the NET reduction in float is only $5B. Tech companies especially run this pattern.

Debt-funded buybacks

Look at the balance sheet: if long-term debt rose by a similar amount to the buybacks, the company leveraged up to return capital. Not inherently bad, but the risk profile of those shares just changed.

Authorizations ≠ execution

A $75B authorization doesn’t mean $75B of buybacks are coming. Boards routinely let authorizations sit unused for years. The 10-K cash-flow number is always the ground truth.

Accelerated share repurchase (ASR) programs

ASRs are forward-dated large repurchases executed through an investment bank. The initial tranche is reflected upfront; the final settlement (share-count adjustment) comes later. A company using ASRs will show a large buyback number for the quarter it initiates them, which can create misleading yearly comparisons.

How HoldLens handles this

Every row on our buyback tracker cites the specific 10-K or 8-K filing that produced each number, with the filing date visible. Authorization figures are current active programs; repurchased figures are trailing-fiscal-year from the cash flow statement.

We explicitly do not net out stock-based compensation in reported figures — that’s a judgment-call adjustment best made by the investor reviewing the company’s SBC profile. We flag companies where SBC is a material percentage of repurchases in the per-ticker pages when the data is available.

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