SEC Fast-Tracks Rule to Let Public Companies Report Earnings Twice a Year

The Securities and Exchange Commission has formally advanced one of the most consequential disclosure changes in decades, with Chairman Paul Atkins confirming the agency placed the project on its fast-track rulemaking agenda. On May 5, 2026, the SEC proposed amendments that would permit public companies to report financial results twice a year rather than every quarter. Under the proposal, companies could opt to file semiannual reports on a new Form 10-S in place of two of their three quarterly Form 10-Q filings. Firms electing the new regime would file one semiannual report plus an annual 10-K, while companies preferring the status quo could continue filing three 10-Qs and a 10-K. Crucially, the framework is optional, not a mandate. Atkins framed the move as part of his 'Make IPOs Great Again' agenda, arguing that the 'rigidity' of mandatory quarterly reporting prevents companies from deciding for themselves which cadence suits their business. He also emphasized that the rule would not change the frequency of earnings calls or press releases, which remain at each company's discretion. The initiative follows President Trump's September 2025 call for the SEC to end mandatory quarterly reporting, which he argued fosters short-termism, distracts management from long-term strategy, and adds compliance costs. The concept echoes a similar push during Trump's first term and aligns U.S. practice closer to markets like the U.K. and EU. The proposal has drawn significant opposition from the investor community. A CFA Institute survey found 62% of investment professionals oppose replacing quarterly reporting with semiannual reporting, and 70% oppose giving issuers broad flexibility to set their own frequency. Major institutions including Fidelity, Citadel, Two Sigma, D.E. Shaw, and the Managed Funds Association have voiced concerns that less frequent disclosure widens information asymmetry, potentially advantaging corporate insiders over ordinary investors and reducing market transparency. Supporters counter that the change could lower compliance burdens, particularly for smaller and newly public companies, and encourage more firms to pursue IPOs. Critics warn that reduced transparency could increase volatility around the less frequent reporting dates and complicate analyst coverage. The proposal carries a 60-day public comment period. The CFA Institute has said it will file a formal comment letter. While final rules remain at least several months away, they could be in effect by the time most calendar-year companies file their fiscal 2026 Form 10-Ks. For now, companies face no immediate change but should begin weighing whether semiannual reporting fits their investor relations strategy and disclosure obligations. Sources: SEC press release 2026-42; Chairman Atkins' proposing-release statement; CNBC; Forbes; CFA Institute; CFO Dive; Thomson Reuters; Sidley Austin; Gibson Dunn; Deloitte.