The U.S. Securities and Exchange Commission (SEC) is preparing a proposal that would allow public companies to report earnings twice per year instead of every quarter, according to reporting from The Wall Street Journal and Reuters.
The change would not eliminate quarterly reporting entirely, but would make it optional. Companies could continue reporting every 90 days if they choose, while others could shift to a semiannual reporting schedule.
The proposal could be published as soon as next month and would then enter a public comment period before a final SEC vote.
What Is Being Proposed
Under current U.S. securities rules, most public companies file Form 10-Q reports every quarter, alongside an annual Form 10-K. The new proposal would allow firms to publish results every six months instead.
Key elements reported so far:
- Quarterly reporting would become optional rather than mandatory
- Companies could choose semiannual financial disclosures
- Exchanges may need to adjust listing rules if the policy is adopted
- The rule would go through the standard SEC comment process before approval
If adopted, the change would represent one of the most significant shifts in U.S. public market disclosure practices in decades.
Why the Idea Is Being Considered
Supporters argue that quarterly reporting encourages short-term corporate decision-making.
President Donald Trump previously called for ending mandatory quarterly earnings reports, arguing they pressure executives to focus on near-term results rather than long-term investment. SEC Chair Paul Atkins has also signaled openness to the idea.
The Long-Term Stock Exchange and other market participants have similarly advocated for the change, suggesting that less frequent reporting could encourage companies to prioritize long-term strategy and capital allocation.
Advocates also cite lower compliance costs, particularly for smaller public companies that face significant reporting and audit burdens.
Concerns Around Transparency
Critics argue that reducing reporting frequency could weaken market transparency.
Quarterly reports currently provide investors with:
- Regular financial performance updates
- management commentary and forward guidance
- early signals of operational deterioration
Moving to semiannual reporting could lengthen the information gap between disclosures, potentially increasing uncertainty for investors.
Some analysts also warn that less frequent reporting could increase volatility, as markets react more sharply when new information is finally released.
Potential Market Implications
If implemented, the change could alter how information flows through public markets.
Corporate Strategy
Companies may gain greater flexibility to pursue longer investment cycles without the pressure of quarterly earnings targets.
Investor Information
Institutional investors could rely more heavily on:
- conference calls
- investor days
- alternative data
- analyst channel checks
to monitor performance between formal disclosures.
Public vs Private Markets
A reduction in disclosure requirements could make public markets marginally more attractive relative to private markets, where reporting is already less frequent and more flexible.
What Happens Next
The SEC is expected to publish the proposal in the coming weeks. Once released:
- A public comment period (typically at least 30 days) will begin
- The SEC will review feedback from companies, investors, and exchanges
- Commissioners will vote on whether to adopt the rule
There is no guarantee the change will be finalized, but the proposal signals a growing debate over whether the quarterly reporting model still fits modern capital markets.
Sources
Reuters, “US SEC preparing to scrap quarterly reporting requirement,” March 16, 2026
Wall Street Journal, “SEC Prepares Proposal to Eliminate Quarterly Reporting Requirement,” March 16, 2026
