SEC Proposes to Eliminate Quarterly Reporting Requirement for Public Companies — Update

By Kelly Cloonan

The Securities and Exchange Commission proposed amendments that would give public companies the option to file reports semiannually, rather than on a quarterly basis as required by federal securities laws.

Under the SEC's proposed amendments, public companies could choose to file one semiannual report and one annual report for each fiscal year in lieu of three quarterly reports and one annual report. The proposal is subject to a public comment period of 60 days, the SEC said, after which the regulator will vote on it.

The proposed amendments aim to give companies greater flexibility to choose the reporting frequency that is best for them and their investors, the SEC said.

"The rigidity of the SEC's rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors," SEC Chairman Paul Atkins said in a statement.

The Wall Street Journal reported in March on the SEC's preparations of the proposal.

The push to allow for semiannual reporting has been gaining momentum lately. The Wall Street Journal reported in September that the Long-Term Stock Exchange petitioned the SEC to eliminate the quarterly earnings report requirement, and within days, President Trump and Atkins both said they supported the idea.

Some believe the proposal, if adopted, could help with the declining number of public companies in the U.S., given some companies say they remain private to avoid the time-consuming and costly clerical work required to list and maintain publicly traded shares.

However, some investors could take issue with the changes, given they rely on the transparency of regular disclosures.

Companies that opt for the proposed semiannual reporting option would file on a new Form 10-S, with a deadline of 40 or 45 days after the end of the first semiannual period of the fiscal year, the SEC said. Public companies are currently required to file quarterly reports on Form 10-Q.

The proposal would also amend a regulation that governs the financial statement requirements for periodic reports, registration statements and proxy statements, to reflect the new semiannual reporting option and simplify the existing financial statement requirements, the SEC said.

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 05, 2026 14:07 ET (18:07 GMT)