Is Quarterly Reporting About to Be History?

If you’ve ever felt like quarterly earnings season hits faster than rush hour traffic, you’re not alone. The U.S. Securities and Exchange Commission (SEC) is weighing a bold shift: replacing mandatory quarterly earnings reports with semiannual disclosures. The idea, pushed by President Donald Trump and welcomed by SEC Chair Paul Atkins, could upend a system that’s been in place for over 50 years. The SEC is now considering a dramatic shift, one that could rewrite how corporate America measures and shares its financial story.

How We Got Here

Back in 1970, the SEC made quarterly reports mandatory. The goal? Keep investors in the loop, keep markets transparent, and keep corporate America honest. Before that, companies only reported twice a year, a system that many global markets, including parts of Europe, still use today. But as any Wall Street pro will tell you, the quarterly cycle isn’t all sunshine. Heavy hitters like Warren Buffett and Jamie Dimon have long argued that the constant pressure to “hit the numbers” every three months creates what they call “short-termism.” Instead of focusing on bold, long-haul strategy, companies often chase short-term wins to keep analysts happy.

Trump Turns Up the Heat

So why is this debate back in the spotlight? Trump, never one to shy away from shaking the table, reignited it in September 2025 with a Truth Social post: “Subject to SEC approval, companies and corporations should no longer be forced to ‘report’ on a quarterly basis… This will save money, and allow managers to focus on properly running their companies.”

He even contrasted America’s three-month obsession with China’s so-called “50-to-100 year view” of business planning, arguing the U.S. is stuck in short-term traffic while rivals cruise in the fast lane. Chairman Atkins wasted no time jumping on board. On CNBC’s Squawk Box, he said: “In principle, proposing a change in what our rules are now would be a good way forward.”

Crucially, the proposal wouldn’t force all companies into semiannual reports, it would give them a choice. That flexibility, Atkins argues, lets “the market decide” how often companies report, with investors ultimately calling the shots.

Billions and Hours Saved

Here’s where it gets real. Quarterly reports aren’t cheap. Finance teams grind through month-end closes, disclosures, and audits four times a year, often burning the midnight oil. Industry estimates suggest moving to semiannual reporting could save companies north of $6 billion annually in direct compliance costs. Factor in the freed-up working hours—tens of millions across accounting, audit, and advisory teams, and the gains are even bigger. That’s time companies could pour into R&D, innovation, or scaling operations instead of cranking out 10-Q filings every few months. For smaller public firms, those savings could be a lifeline. Less red tape, more runway.

Could Investors Get Left in the Dark?

Of course, not everyone’s yelling “hallelujah.” Critics warn that less frequent reports could mean less transparency. Retail investors, who often rely on quarterly filings to make timely decisions, could be left flying blind. And with longer reporting gaps, some worry about “burying the bad news” or giving insiders more time to trade on non-public info. Prominent names like Jamie Dimon, Warren Buffett, and Larry Fink have supported dialing back guidance but not necessarily reporting itself. They argue that while forecasts fuel short-term thinking, formal reports provide the transparency markets rely on. Still, Atkins downplays transparency concerns. Material events must still be disclosed immediately via 8-K filings, and in today’s always-on information ecosystem, investors are hardly starving for data.

How Does the U.S. Stack Up?

Globally, the U.S. pattern of quarterly reports is somewhat unique. Some major markets like Canada and Japan require quarterly reports, while the European Union generally mandates twice-yearly financial disclosures.  Even within the EU, practices vary, and the UK abandoned mandatory quarterly reporting back in 2014, though some firms still release quarterly updates out of market convention. It’s interesting to note that Trump references China approvingly, but Chinese companies listed domestically also generally report quarterly, and Hong Kong-listed firms provide semiannual and annual statements.

Source: Bloomberg

The SEC Rulemaking Process

Changing SEC rules is no overnight feat. The agency typically undergoes a formal process involving:

• Drafting a proposal.
• Opening it up for public comments and reviews.
• Possibly hosting hearings or roundtables.
• Revising and finalizing the rule based on feedback.
• SEC Commissioners voting to approve or reject.

With the current Republican majority, the proposal has a better chance than in prior years. Experts estimate that it could take anywhere from six to twelve months or longer before a final rule is established. But SEC Chair Atkins’ recent statements indicate an eagerness to fast-track this reconsideration as part of a broader agenda to reduce regulatory burdens and modernize disclosure rules.

Lessons for Professionals and Investors

Whether or not quarterly reporting is formally replaced, this debate signals a shift in how we think about transparency, corporate governance, and market efficiency. For financial pros, this could be less hectic. Audit cycles, investor communications, and compliance schedules might all need recalibration. At the same time, technology and automation will likely step in to keep investors fed with data outside of formal reports. For investors, the trade-off is clear: fewer reports mean cost savings for companies, but also fewer peeks under the hood. Market volatility could rise if surprises pile up between disclosures.

Final Word

Quarterly reporting has been Wall Street’s heartbeat for decades. But now, the SEC is flirting with a new rhythm, one that could free companies from the hamster wheel of three-month deadlines. Whether this creates long-term value or leaves investors chasing shadows will depend on how companies and markets adapt. As Atkins put it: “We have to remember who the boss is, and that’s investors.” So, the real question is, will investors demand the same beat, or are they ready to groove to a slower jam?