SEC considers moving to semiannual earnings reporting

The U.S. Securities and Exchange Commission (SEC) is reportedly developing a proposal to allow publicly traded companies to report earnings twice a year rather than the current quarterly requirement, according to the Wall Street Journal.

Discussions around making the more than 50-year-old quarterly reporting rule optional have gained momentum over the past year. Many companies have raised concerns about the costs and operational burden associated with preparing quarterly financial reports. Some observers also believe that the requirement has contributed to companies choosing to remain private for longer periods.

Supporters of the proposed change argue that moving to semiannual reporting could make public markets more attractive by reducing compliance pressures and simplifying the ongoing obligations of being a listed company. SEC Chairman Paul Atkins, along with President Donald Trump, has expressed support for the idea.

The Wall Street Journal reports that the SEC has already begun preliminary discussions with stock exchanges about how such a transition might be implemented. However, any potential change remains in the early stages and is not expected to take effect in the near term. If the SEC formally introduces the proposal — which could happen within the next few weeks — it would undergo a public comment period before being put to a vote.

There is already an international precedent for this approach. Both the European Union and the United Kingdom removed mandatory quarterly reporting requirements roughly a decade ago, opting instead for semiannual disclosures. Despite this shift, many companies in those regions have continued to provide voluntary quarterly updates.