SEC Proposes Optional Switch to Semiannual Reporting for Public Companies

U.S. Securities and Exchange Commission on May 5, 2026, proposed amendments that would allow public companies to opt for semiannual reporting instead of the traditional quarterly filings, introducing a new Form 10-S for those electing the change. SEC Chairman Paul S.

Atkins stated that the proposal is part of his 'Make IPOs Great Again agenda,' aimed at encouraging more companies to go public by offering increased regulatory flexibility. The amendments would let companies and their investors determine the interim reporting frequency that best serves their needs, while ensuring material information reaches investors.

Under the proposal, the filing deadline for semiannual reports on Form 10-S would be 40 or 45 days after the end of the first semiannual period of the fiscal year, depending on the company's filer status.

The SEC also plans to amend Regulation S-X to reflect this option and simplify existing financial statement requirements for periodic reports, registration statements, and proxy statements. Atkins elaborated in a statement: 'Public companies have an obligation under the federal securities laws to provide information that is material to investors.

Yet, the rigidity of the SEC’s rules has prevented companies and their investors from determining for themselves the interim reporting frequency that best serves their business needs and investors.

He added that over the next few months, the commission will consider additional proposals to redefine what it means to be a public company and make it attractive again. The idea for semiannual reporting originated from a conversation between PepsiCo’s former CEO and President Trump during his first term, according to reporting from The Hollywood Reporter.

The SEC's goal includes promoting long-term thinking among management, as quarterly reports can encourage short-termism, and addressing the trend where valuable firms like SpaceX, OpenAI, and Anthropic remain private.

SEC Commissioner Hester Peirce raised the concept of developing simplified 10-Q reports, allowing companies to elect quarterly data revelation even under the new framework, providing further leeway in how they present information to investors. The proposal comes amid ongoing transformations in industries like media and entertainment, where companies such as Netflix, Disney, and Paramount face fluctuating subscriber numbers and ad sales trends.

5 million gain, prompting co-founder Reed Hastings to announce an ad-supported tier during the earnings call.

That 2022 Q1 report marked a shift in the streaming sector toward profitability, but Netflix's performance stabilized by the end of Q2 2022 and returned to growth by Q3. A veteran media executive noted that semiannual reporting could allow companies to 'smooth out' data, potentially shielding choppiness in metrics like subscriber counts or ad sales from immediate view.

One veteran ad sales executive expressed a preference for less frequent reporting due to the cyclical nature of the business.

The Hollywood Reporter suggested that had semiannual reporting been available in 2022, the industry's response to Netflix's results might have differed, possibly altering the pivot in Hollywood's streaming strategies. Separately, Disney is set to report earnings on May 6, 2026, marking the first under new CEO Josh D'Amaro.

Tom Rogers, Versant senior advisor and former NBC Cable president, joined CNBC's 'Squawk Box' on May 5, 2026, to preview Disney's quarterly earnings results and discuss expectations for the media and entertainment company.

The SEC notes that semiannual reporting will be optional for companies, allowing them to choose based on business needs. Morningstar's CEO agreed with the shift to semiannual reporting but emphasized conditions to ensure investors do not lose out on transparency.

Critics, including some investors, have raised concerns about reduced transparency, as a lot can happen in six months between reports, according to commentary from @SawyerMerritt.

However, proponents argue it would enable a focus on long-term strategies.