Over the next few weeks, publicly traded companies will begin releasing their Q2 earnings reports
and hosting earnings calls with analysts and shareholders. And so, the cycle begins again…
By “cycle,” I’m referring to the awkward, uncomfortable dance that plays out in businesses everywhere: a manager, without real business acumen, reads a few lines from the press release or earnings deck, pulls together a half-baked summary, and tries to sound like a visionary leader by “sharing insights” with their team.
It’s not pretty.
The problem comes when someone on the team, often a high-potential future leader, asks a question. Something like:
- “How does the decline in free cash flow affect our department budget?”
- “Why is EBITDA growing while revenue is flat?”
- “How do these expense cuts help the business?”
If you freeze, change the subject, or throw out buzzwords without substance, you’ve missed a golden leadership opportunity. And worse, you’ve exposed a knowledge gap that your team can see from a mile away.
Over the years, I’ve developed several simulation-based tools and training programs to help managers avoid exactly this moment. Based on my experiences, I am pleased to share five practical tips to help you confidently share earnings insights and lead from a place of credibility.
Five Tips to Prepare to Share Earnings Call Insights
- Know What to Look For
Start with the basics: Focus on Revenue, Gross Margin, Operating Profit (or EBITDA), Net Income, and Free Cash Flow. For each, look for changes versus prior quarters or prior year. Are they up or down? Why? Read the press release and earnings call transcript with those lenses first. - Connect Financial Outcomes to Business Drivers
It’s not enough to say EBITDA grew 12%. You have to know why. Was it due to cost-cutting? Price increases? Supply chain efficiencies? Did R&D slow down? When you connect financial outcomes to operational choices, you turn data into strategy—and that’s what great leaders do. - Translate Insights to Your Team’s World
Bridge the gap between Wall Street and your team. If Free Cash Flow is down due to higher inventory levels, what does that mean for your team’s priorities? Hiring? Budgets? Speed of execution? Sharing insights is only valuable when you link them to the things your team actually cares about. - Prepare for One or Two Smart Questions
Anticipate what your most curious team member might ask. What would you ask if you were sitting in their seat? Look up basic definitions. Have a point of view (POV). Confidence doesn’t mean having all the answers; it means being prepared enough to hold the conversation. - Don’t Pretend—Learn Instead
If you don’t understand something in the earnings call, don’t fake it. Say, “That’s a great question, I’m going to dig in and come back with a clearer answer.” Then do the work. Study the earnings deck. Read the footnotes. Ask someone who knows. Use it as a leadership development moment for you and your team.
BONUS: Practice! Take a few moments to look into a mirror or record yourself engaged in a conversation. Advantexe has just released a new tool called Praction AI, where you can actually practice with a simulated employee who will engage with you and then, at the end, will give you coaching and feedback.
Summary
Sharing earnings call insights isn’t just about checking a box or sounding smart. It’s about demonstrating that you understand the business, that you care about how strategy connects to execution, and that you’re invested in your team’s ability to play a role in what comes next.
This is a critical muscle to build, and you are hurting yourself, your career, and your team if you are not exercising the muscle.
