Story perspectives

SEC Proposes Voluntary Quarterly, Optional Semiannual Earnings Reporting

5/6/2026

Summary

SEC Proposes Voluntary Reporting

The SEC announced on May 5, 2026 a proposal to make quarterly earnings reports voluntary and to allow semiannual reporting.
The rule follows a Long-Term Stock Exchange petition filed in September 2025.
The SEC will open a 60-day comment period for companies, investors and other market participants.
Supporters say the change could reduce short-termism, improve competitiveness and let firms give more flexible shareholder updates.

Summary

SEC Eases Reporting

SEC Chair Paul Atkins said the agency will keep material-information disclosure rules while easing the quarterly reporting schedule.
Wealth advisors and registered investment advisers must adjust portfolio monitoring because fewer standardized data points will be available.
The shift will increase reliance on alternative disclosures, management commentary and qualitative signals to gauge performance.
A 60-day public comment period will be watched as advisors gauge how the change could reshape investment processes.

Summary

SEC Proposes Savings

The SEC estimates issuers opting for semiannual reports could cut costs by $198,000 per fiscal year.
Jack McCullough says CFOs value quarterly reporting.
Nick Araco Jr. says CFOs want clearer SEC expectations, fearing a sense of breathing room.
Francine McKenna warns the proposal may increase reliance on non-GAAP metrics and delay investor clarity.
Neil Bass cautions the reduction could cause accountants and lawyers to lose business, recalling Enron.

History

Historical Context

The 2002 Sarbanes-Oxley Act, passed after Enron’s collapse, forced public firms to file quarterly reports and bear Section 404 costs that averaged $1.7 million per company in a 2007 FEI survey. After years of guidance—PCAOB Standard 5 (July 2007) and a 2010 exemption for small filers, the SEC’s 2026 proposal to make quarterly filings voluntary revives the debate over cost versus transparency.

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SEC Proposes Voluntary Reporting

The SEC announced on May 5, 2026 a proposal to make quarterly earnings reports voluntary and to allow semiannual reporting.
The rule follows a Long-Term Stock Exchange petition filed in September 2025.
The SEC will open a 60-day comment period for companies, investors and other market participants.
Supporters say the change could reduce short-termism, improve competitiveness and let firms give more flexible shareholder updates.

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