• President Trump proposed in September 2025 that the SEC allow public companies to report earnings semiannually instead of quarterly.
• The government shutdown delayed action; an update is expected late 2025 or early 2026.

Arguments in Favor

1. Boost Public Markets – Adena Friedman (Nasdaq CEO)

• Quarterly reporting is costly and time-consuming, particularly for small- and mid-cap companies.
• Short-term focus is reinforced, discouraging companies from going public.
• Reducing reporting frequency wouldn’t eliminate transparency—annual 10-K filings and 8-K updates would remain.
• Could help attract more companies to public markets, benefiting investors.

2. Nudge Toward Long-Term Thinking – Michael Archbold

• Fewer reports could reduce costs, especially for smaller firms.
• However, semiannual reporting alone won’t eliminate short-term pressures, which come from CEO tenure, activist investors, ESG demands, and market scrutiny.
• Provides flexibility but is not a cure-all; boards must still incentivize long-term strategy.

Arguments Against

1. Market Transparency – Dreifus, Hipskind, McBoyle (Royce Fund)

• U.S. capital markets are valued for timely, frequent information.
• Semiannual reporting could reduce transparency, increase volatility, and favor large investors over small ones.
• Evidence from the U.K. and EU shows semiannual reporting did not lead to longer-term corporate focus.
• Less frequent reporting would shift scrutiny to 8-K filings rather than eliminate it.

2. Wrong for the AI Era – Darren Robbins

• Rapid innovation, especially in AI, requires frequent disclosure.
• Semiannual reporting could increase risk of misleading information and investor losses.
• Most investors prefer quarterly reports; they improve forecast accuracy and provide valuable insights beyond headlines.
• Short-termism is caused by incentives, not transparency frequency; quarterly reporting remains essential.

Bottom Line

• Proponents: Reduce costs, ease IPO barriers, promote long-term thinking.
• Opponents: Threaten transparency, disadvantage smaller investors, not proven to change corporate time horizons, risky in fast-moving sectors like AI.
• SEC update expected late 2025 / early 2026.