SEC Prepares Proposal Ending Mandatory Quarterly Reporting

• The SEC has been discussing the potential change with officials at major exchanges and may release a proposal for public comment in April 2026
• President Trump advocated for this change during both his first and current terms, arguing it would save money and reduce short-term focus for company managers
• Both the European Union and United Kingdom ended quarterly financial reporting requirements approximately a decade ago, providing international precedent for the proposed shift

Summary

The Securities and Exchange Commission (SEC) is preparing to propose eliminating mandatory quarterly earnings reporting for public companies, shifting to semi-annual reporting instead. According to The Wall Street Journal, the regulator has been consulting with major exchange officials and could release the proposal for public comment as early as April 2026.

Key Details:

• The proposal would reduce reporting frequency from four times to twice annually
• President Donald Trump advocated for this change, stating it would "save money and allow managers to focus on properly running their companies"
• Trump previously requested the SEC consider this change during his first presidential term in 2018
• The SEC declined to comment when contacted by PYMNTS

Market Context:

• Both the European Union and United Kingdom eliminated quarterly reporting requirements approximately a decade ago
• Supporters argue the change would reduce compliance costs and encourage companies to go public
• Some firms reportedly remain private specifically to avoid the time and expense of quarterly reporting requirements

Expected Opposition:

Investors favoring transparency through regular disclosures are likely to oppose the change, as less frequent reporting could reduce visibility into company performance and operational developments.

Historical Background:

Quarterly reporting has deep roots in U.S. securities regulation, while earnings calls became standardized features in the 1980s and expanded with internet adoption. This potential shift represents a significant departure from decades of established practice in American financial markets.

The proposal's implications could fundamentally reshape corporate disclosure practices and investor access to financial information.