Key Takeaways:
The SEC is preparing a proposal, expected as early as April 2026, to eliminate the mandatory quarterly reporting requirement for US public companies and allow semiannual disclosures instead.
SEC Chairman Paul Atkins backs the shift, which aligns US reporting standards with the UK and EU, where mandatory quarterly reporting was dropped roughly a decade ago.
Critics warn that reducing reporting frequency from four times to twice per year removes six months of financial transparency between disclosures, increasing information asymmetry for investors.
The Securities and Exchange Commission is preparing to propose eliminating mandatory quarterly earnings reports for public companies, according to the Wall Street Journal. The proposal, expected as early as April 2026, would make Form 10-Q filings optional and allow companies to disclose financial results twice a year instead of every 90 days.
SEC Chairman Paul Atkins has backed the initiative, framing it as modernizing disclosure rules and reducing regulatory burden. The Long-Term Stock Exchange and business leaders have argued the quarterly cycle is costly, encourages short-term thinking, and contributes to the declining number of public companies. President Trump endorsed the change in September 2025, and Atkins accelerated the formal rulemaking process.
The SEC's regulatory agenda listed the initiative under "Rationalization of Disclosure Practices," targeting rule amendments to "facilitate material disclosure by companies and shareholders' access to that information." Once proposed, a public comment period of at least 60 days is typical for major rules, followed by a 30-day minimum waiting period before any final rule takes effect.
The UK and EU eliminated mandatory quarterly reporting approximately a decade ago, though many large companies in both markets continue to report quarterly by choice.
The accountability angle here is straightforward. Quarterly reporting exists because investors need timely information to make decisions. Semiannual reporting means six months between mandatory financial disclosures. That is six months where insiders know more than the public. The proposal does not eliminate Form 8-K requirements for material events, but the gap between scheduled disclosures widens significantly.
The same SEC classifying crypto assets and reducing barriers to blockchain transparency is simultaneously proposing that traditional public companies disclose less, less often.
People Also Ask
Q: Will the SEC eliminate quarterly earnings reports? A: The SEC is preparing a proposal to make quarterly 10-Q filings optional, allowing companies to report semiannually instead. The rule is expected to be proposed in April 2026.
Q: Why does the SEC want to end quarterly reporting? A: Proponents argue quarterly reporting is costly, encourages short-term decision-making, and discourages companies from going public. The change would align the US with UK and EU practices.
Q: What are the risks of semiannual corporate reporting? A: Critics warn that six months between disclosures reduces investor transparency, increases information asymmetry favoring insiders, and could heighten market volatility around fewer reporting dates.
Q: Do UK companies still report quarterly? A: The UK eliminated mandatory quarterly reporting about a decade ago, but many large companies continue to report quarterly voluntarily.