Quarterly earnings could become optional under SEC proposal

The U.S. Securities and Exchange Commission is preparing a rule proposal that would give listed companies the option to file financial results twice a year rather than every quarter. According to people familiar with the process, a draft could be published as soon as April 2026, followed by a public comment period of at least 30 days and a commission vote. The plan would make quarterly reporting optional, not remove it.

Companies would be free to keep reporting on a three-month cycle if they choose. No outcome is assured until the SEC completes the rulemaking process.

The review gained momentum in late 2024 when the Long-Term Stock Exchange petitioned the SEC to eliminate the quarterly earnings requirement. Within days, the U.S. President and the SEC Chair publicly expressed support for examining semiannual disclosures. The SEC explored the topic earlier in the administration’s first term but did not advance a rule.

Regulators have discussed the prospective change with major U.S. stock exchanges to assess whether listing rules would need adjustments if semiannual reporting becomes permissible.

Supporters contend an option to report twice a year could reduce time and costs linked to public listings, issues that some private companies cite when choosing not to go public. Investor groups are expected to raise concerns about less frequent updates, which inform investment decisions.

The proposal under consideration would not bar quarterly earnings releases or business updates. Companies could decide whether to keep issuing them, and many already provide interim metrics or guidance outside formal SEC filings.

International practice offers context. The European Union removed mandatory quarterly reporting in 2013, and the United Kingdom ended the requirement about a decade ago. Many companies in those markets still report quarterly on a voluntary basis.

Any U.S. proposal would go through the standard notice-and-comment process. Feedback from companies, investors, exchanges, and other stakeholders would address market effects, disclosure quality, and transition timing. After reviewing comments, the SEC could adopt, revise, or withdraw the rule.

The agency has not outlined a final structure. Details such as how issuers could switch filing frequency, timing for any transition, and whether interim updates would be required remain open for comment. The SEC has not set a target date for a final vote.

Quarterly reporting remains mandatory under current U.S. securities laws unless and until the SEC adopts changes.