Anthropic's upcoming IPO faces scrutiny over $32bn in unrecognised stock-based compensation expenses. These deferred costs, largely from double-trigger RSUs, were not included in the company’s reported $1.26bn operating loss. The practice mirrors past IPOs like Uber, which reported $3.6bn in deferred expenses post-listing, leading to a stock drop.
Research shows deferring expenses over $107mn correlates with high risk of stock price decline. Investors should expect continued heavy compensation expenses post-IPO. Reforming accounting rules to require earlier recognition of these costs could improve transparency and protect investors.
Source: Financial Times Companies · Summarized by HeadlinesBriefing