The Securities and Exchange Commission (SEC) is considering a proposal that would allow publicly traded companies to report financial results twice a year instead of every quarter. According to sources, the SEC might publish this proposal as early as April 2026. After release, there will be a public comment period lasting at least 30 days before any decision can be made.

Quarterly reporting would remain optional under the proposed rule changes; companies could still choose to report on a quarterly basis if they prefer. However, this change aims to give firms more flexibility in managing their disclosure processes.

A Long-standing Rule Under Scrutiny

For over five decades, publicly traded US companies have been required to provide quarterly financial reports. A push for semiannual reporting gained traction late in 2024 when the Long-Term Stock Exchange (LTSE) formally petitioned the SEC to eliminate quarterly earnings requirements. Soon after this petition, both the President and the SEC Chair expressed public support for the idea.

To prepare for potential rule changes, regulators have been consulting with officials from major stock exchanges about necessary adjustments to existing rules.

This isn’t the first time such a proposal has been considered by the federal government. It was briefly discussed during the President’s first term but did not advance further.

Supporters argue that lowering the reporting frequency could help address the declining number of US companies choosing to go public due to the administrative burden associated with producing quarterly disclosures, including time and financial costs.

However, the proposal may face opposition from investors who rely on frequent, transparent financial disclosures for decision-making purposes.

International Precedent

The US would not be the first major market to loosen quarterly reporting requirements. In 2013, the European Union removed mandatory quarterly financial reports for listed companies. The UK similarly ended compulsory quarterly disclosures about a decade ago, though many firms in both regions continue to report on that schedule voluntarily.

These international practices provide context for the SEC’s deliberations but do not dictate the final structure of any US rule change, which will be shaped by public comments and subsequent SEC voting.