SEC Plans Rule Allowing Companies to Choose Semiannual Reporting

The U.S. Securities and Exchange Commission (SEC) has announced it will propose a rule change that would permit public companies to choose between quarterly and semiannual financial reporting. This development follows a petition from the Long-Term Stock Exchange and public endorsement from President Trump.

Since 1970, U.S. public companies have been required to file quarterly Form 10-Q earnings reports. The current proposal would give companies the option to switch to a semiannual reporting schedule, while maintaining Form 8-K obligations for material events.

On September 9, 2025, the Long-Term Stock Exchange submitted a petition to the SEC requesting that companies be allowed to report earnings twice a year instead of four times. President Trump publicly supported the shift to semiannual reporting on September 15, 2025.

SEC Chair Paul Atkins stated that the agency intends to propose a rule change to allow companies to select their preferred reporting frequency. Atkins also said the rulemaking process is being fast-tracked, with a formal proposal expected by late 2025 or early 2026.

What the numbers show

• Quarterly reporting has been in place for U.S. public companies since 1970
• Fewer than 10% of UK companies stopped quarterly updates after a similar change in 2014
• Estimated compliance cost savings range from $50,000 to over $1 million per quarter

A regulatory analysis published in January 2026 projected that the SEC could propose the rule in April 2026, with implementation beginning in 2027. The proposed model would allow companies to opt in to either quarterly or semiannual reporting based on their preference.

Supporters of the change have cited potential benefits such as reducing regulatory workload, encouraging a longer-term business focus, and harmonizing with international practices. The proposal also aims to address concerns about the administrative burden associated with frequent reporting.

However, potential drawbacks identified include the possibility of reduced transparency, less frequent analyst coverage, and challenges related to capital raising and compliance with Regulation FD. The change could also affect the timing of insider trading windows and related disclosures.

If the rule is adopted, companies could see a reduction in compliance costs, with estimates ranging from $50,000 to over $1 million saved per quarter. Accounting firms could experience a decrease in revenue of approximately 15% as a result of fewer required filings.

* This article is based on publicly available information at the time of writing.