SEC Weighs Letting Public Companies Report Earnings Twice a Year

The Securities and Exchange Commission is developing a rule that would allow publicly traded companies to issue financial results two times annually instead of the current four, people briefed on the matter said. The change, if proposed, would move through a public-comment period and a commission vote before taking effect.

Corporate leaders have long complained that the quarterly reporting cycle demands significant legal, accounting and management attention, and they argue the pace raises costs and short-term pressures. Executives and bankers say a twice-yearly timetable could make it less onerous to remain listed, and might encourage some private firms to seek public markets sooner.

The idea has found backers in Washington. The SEC chair, Paul Atkins, and the White House under President Trump have expressed sympathy for loosening the schedule, officials and advisers report. Regulators have already begun talking with stock exchanges about potential steps, though any formal proposal could still be weeks away and is unlikely to move quickly.

Advocates say the shift could let companies focus on long-term strategy. Critics warn that less frequent filings might reduce the flow of information for investors and short-circuit market discipline. A corporate governance scholar said regulators will need to weigh transparency against compliance costs.

There is international experience to consider: roughly ten years ago the EU and the U.K. dropped mandatory four-times-a-year reporting in favor of twice-yearly disclosures, yet a substantial number of firms there still publish quarterly updates by choice.