A potential shift by the Securities and Exchange Commission (SEC) could change one of the most routine practices in U.S. business.
The agency is preparing a proposal that would allow publicly traded companies to report financial results twice a year instead of every quarter, according to Reuters. The rule, which could be introduced as soon as April, would not eliminate quarterly reporting but would make it optional.
If adopted, the change would mark a major departure from a system that has been in place since 1970, when quarterly reporting through Form 10-Q filings became standard for U.S. public companies.
The idea is not a new one. In September 2025, the Long-Term Stock Exchange petitioned the SEC to allow semiannual reporting, arguing that the current system encourages short-term decision-making. President Donald Trump has backed the concept both during his first term and again last year, and SEC Chairman Paul Atkins confirmed in September that the agency would move forward with a proposal.
Supporters say the shift could ease pressure on companies and encourage long-term thinking. Quarterly reporting often requires significant time and resources, including preparing filings, conducting auditor reviews and managing investor expectations. Business leaders have argued that those demands can discourage companies from going public and push executives to focus on meeting short-term earnings targets instead of investing in growth.
Reducing reporting frequency, they say, could free up resources and allow companies to focus more on strategy, innovation and long-term performance.
The proposal would also bring the United States more in line with other major markets. The European Union ended mandatory quarterly reporting in 2013, and the United Kingdom followed in 2014. In both cases, regulators shifted back to semiannual reporting frameworks, though many companies still choose to report quarterly.
Still, the potential change is likely to face resistance from investors.
Quarterly earnings reports are a key source of information for shareholders, analysts and the broader market. They provide regular insight into revenue, performance trends and potential risks. Less frequent reporting could reduce the flow of information and make it harder for investors to assess companies in real time.
Some analysts warn that fewer updates could lead to increased market volatility, as investors react more strongly to less frequent but more substantial disclosures. Others argue that reduced reporting could create information gaps and make it harder to compare companies, especially if voluntary disclosures vary in format and detail.
There are also concerns about transparency. Regular reporting requirements help ensure that companies disclose material information consistently, limiting the risk of selective disclosure or uneven access to information. Without a standardized quarterly framework, companies that choose to report less frequently may face questions from investors and lenders about how and when they share key updates.
At the same time, the shift would not necessarily eliminate quarterly reporting in practice. Many companies, particularly larger firms with broad investor bases, may continue to report every three months to meet market expectations. Others may move to semiannual reporting, creating a more mixed landscape across industries.
The SEC is expected to follow its standard rulemaking process, which includes a public comment period before any final decision is made. Even if approved, the transition would likely take time, with implementation deadlines extending beyond the initial rule.
For now, the proposal highlights a broader question facing U.S. markets. Policymakers are looking for ways to reduce regulatory burdens and support long-term growth, while investors continue to depend on frequent, reliable information.
How companies respond will likely determine the outcome. The rule may change what is required, but market expectations will shape what actually happens.
