SEC weighs cutting earnings cadence to twice-yearly reporting
The SEC is drafting a proposal to let public companies report earnings semi-annually instead of quarterly, aligning U.S. practice with Europe. Proponents say it could reduce compliance costs (about $1.2 million per company annually) and ease the burden on smaller firms and IPOs, enabling longer-term planning, while critics warn it may reduce transparency for investors who rely on quarterly data and could enable underperforming firms to mask problems. The plan would require a lengthy comment period and faces pushback from activists and market participants; if adopted, it would mark a major shift in U.S. financial reporting after decades of more frequent disclosures.
