The Securities and Exchange Commission is preparing a formal proposal to end mandatory quarterly earnings reporting for public companies in the United States, according to a report from The Wall Street Journal published on March 16, 2026. Under the proposed rule change, quarterly financial disclosures would become optional, allowing companies to report earnings just twice a year while permitting those that prefer the current cadence to continue filing every three months.
SEC Chairman Paul Atkins has confirmed the agency is fast-tracking the rulemaking process and could publish a formal proposal for public comment as soon as April 2026. If finalized, the rule would represent the most significant change to U.S. corporate reporting requirements in decades.
What the Proposal Would Change
Since the 1970s, the SEC has required U.S. public companies to file quarterly earnings reports, known as 10-Q filings, in addition to their annual 10-K disclosures. The proposed rule would not eliminate quarterly reporting entirely. Instead, it would make the practice voluntary. Companies that wish to continue reporting quarterly could do so. Those that prefer a semiannual schedule would be allowed to switch without penalty.
The SEC has already begun discussions with officials at major stock exchanges, including the New York Stock Exchange and Nasdaq, about how listing standards and trading rules may need to be adjusted if the proposal moves forward. Any finalized rule change would still require a mandatory public comment period of at least 30 days before the commission votes on whether to adopt it.
The Case for Changing the Rules
Proponents of the change argue that mandatory quarterly reporting creates excessive short-term pressure on corporate management, pushing executives to prioritize hitting three-month earnings targets over investing in long-term growth. SEC Chairman Atkins and President Donald Trump, who publicly called for an end to mandatory quarterly reporting in 2025, both argue that reducing the frequency of required disclosures would lower compliance costs and reduce the administrative burden on smaller companies with limited finance and legal staff.
For startups and smaller reporting companies, the quarterly reporting cycle can be a continuous, year-round process that diverts time and money from core operations. Compliance costs for small public companies include audit fees, legal review, investor relations work, and SEC filing expenses that can easily run into the hundreds of thousands of dollars annually.
Supporters of the proposal also believe the change could help reverse a long-running decline in the number of publicly listed companies in the United States. The number of listed U.S. companies has fallen by roughly half since its peak in the late 1990s, and the compliance burden of being a public company is frequently cited as a reason companies choose to stay private longer, or avoid going public altogether.
International Precedent
The United States would not be entering new territory. Both the European Union and the United Kingdom eliminated mandatory quarterly reporting approximately a decade ago, replacing it with semiannual requirements. Many companies in those markets continue to report quarterly by choice, but the legal requirement to do so has been removed. Proponents point to the EU and U.K. experience as evidence that investors and markets can adapt without significant disruption.
What Comes Next
The proposal is not yet finalized, and there is no guarantee it will ultimately become law. Institutional investors and shareholder advocacy groups have historically opposed changes that reduce the frequency of public disclosures, arguing that quarterly reporting gives investors the information they need to make informed decisions and hold management accountable. Any pushback during the public comment period could slow or reshape the final rule.
If the SEC publishes the proposal in April as expected, a public comment period would follow before a formal commission vote, putting the earliest possible implementation date in late 2026 at the soonest. In the meantime, the initiative is part of a broader SEC agenda under Chairman Atkins that includes streamlining IPO requirements and revisiting disclosure rules for smaller reporting companies and emerging growth companies. The S&P 500’s parallel push to fast-track large IPOs suggests that multiple corners of the U.S. capital markets regulatory framework are under simultaneous review.
For founders considering a public market debut, the proposed change signals a shift in the regulatory environment that could make going public less costly and administratively intensive than it has been in recent years.
