The company has told the market that a full review of its historical financials may take up to a month, during which its shares will remain on pause and investors will stay in limbo.
Although one of the Big Four firms is already handling the audit, the decision to bring in a second firm signals an impasse. The core problem lies in the timing of revenue and expense recognition, particularly in the company’s European operations. Questions regarding consistency in reporting have persisted for years, with earlier criticism pointing to abrupt changes in how income was recorded.
Corporate Travel has stated that the results of this review may involve restating previous earnings in a way that lifts profit in earlier years and reduces it in recent ones. However, the market is bracing for a more negative outcome. Analysts expect a drop in earnings of at least 10%, putting full-year profit closer to $150 million, which is significantly lower than projections made a year ago. The company is working towards a revised reporting date of 25 September, though the full impact remains uncertain.
This situation has highlighted the difficulty of maintaining confidence in financial statements when auditors disagree over accounting treatment. It also invites renewed attention from critical investors and short-sellers who have long raised concerns about the company’s financial transparency. Corporate Travel maintains that it is financially secure, with more than $120 million in cash, but the ongoing review continues to cause uncertainty.
