SEC Proposal Would Let Public Companies Report Twice a Year

The U.S. Securities and Exchange Commission has proposed one of the most significant changes to public company reporting requirements in decades: allowing companies to opt out of mandatory quarterly reports and instead file financial statements twice a year.

Under the proposal, announced May 5, companies would be permitted to replace their three annual Form 10-Q filings with a new semiannual report, known as Form 10-S. Public companies choosing this option would submit one midyear report and one annual Form 10-K, while continuing to disclose major developments through current reports on Form 8-K.

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Shift Away from Quarterly Reporting

Quarterly reporting has been a cornerstone of U.S. securities regulation since 1970. Supporters of the SEC proposal argue that the current system imposes significant compliance costs and encourages executives to focus on short-term earnings targets rather than long-term growth.

SEC Chairman Paul Atkins said the rule would give companies and investors greater flexibility to determine the reporting cadence that best fits their needs.

The proposal aligns with a long-standing push by President Donald Trump, who has argued that reducing reporting frequency would save companies money and allow management to focus on strategic priorities. 

Why Some Companies May Welcome the Change

Preparing quarterly reports requires substantial time from finance teams, outside auditors, and legal counsel. For smaller public companies in particular, reducing the number of formal filings could lower administrative costs and ease pressure on management.

Business leaders such as Jamie Dimon and Warren Buffett have previously criticized the emphasis on quarterly results, saying it can discourage long-term investments in areas such as research, employee development, and capital improvements. 

Investor Concerns Over Reduced Transparency

Investor advocates, however, warn that less frequent reporting could limit access to timely financial information and make it harder to compare companies.

Groups such as the CFA Institute and Better Markets have argued that quarterly disclosures are essential to market transparency and investor confidence.

Critics also note that companies could still issue voluntary quarterly earnings releases, potentially giving firms discretion over what information to share and when to share it. That could create inconsistencies across the market and complicate analysis for investors. 

What Happens Next

The SEC is accepting public comments for 60 days after the proposal is published in the Federal Register. If adopted, the rule would likely take effect in 2027. 

Whether many companies would actually abandon quarterly filings remains uncertain. Larger issuers may continue to report every quarter to meet investor expectations, while smaller or early-stage companies may be more likely to take advantage of the new flexibility.

If finalized, the proposal could reshape how public companies communicate with investors and reignite debate over whether quarterly reporting promotes transparency or short-term thinking.