Autodesk (ADSK) did not restate financial statements: Are there grounds for an SEC probe?

Autodesk's internal investigation didn't lead to a restatement, but ADSK admitted to timing charges to meet free cash flow targets. Disclosure deficiencies could lead to SEC and DOJ actions.

On May 31, 2024, Autodesk (Ticker: ADSK) reported the results of an internal investigation of its free cash flow and non-GAAP operating margin practices. The company had announced on April 1 that it would be filing its 10-K late because after its earnings release on February 29, 2024, “information was brought to the attention of management, which promptly informed the Audit Committee of the Board of Directors of the Company”.

While the investigation did not result in a restatement of previously reported results, Autodesk admitted that it had shifted certain charges and collections from one period to another to influence its free cash flow and operating margin metrics.

In its delayed annual report, filed on June 10, 2024, Autodesk warned that the regulators could further scrutinize the findings of the internal investigation:

In early March 2024, the Audit …