SEC Semiannual Reporting Proposal Draws Strong Public Response

When Standard Premium first looked into the discussion on quarterly versus semiannual reporting, the Securities and Exchange Commission (SEC) was considering whether quarterly reporting should become optional. The agency has since issued a formal proposal and received substantial public feedback.

 

The SEC released the proposal on May 5, 2026 and published it in the Federal Register on May 7. The initial comment period closed July 6. It remains under review and has not yet been adopted. The SEC believes greater flexibility could lower compliance costs and encourage more companies to enter or remain in the public markets.

 

What the Proposal Would Change


Public companies currently file three Forms 10-Q and one annual Form 10-K each fiscal year. Under the proposal, eligible companies could instead submit one Form 10-S covering the first six months, followed by Form 10-K. Other companies would continue quarterly reporting.

 

Companies would have the option to elect semiannual reporting by checking a box on Form 10-K or an applicable registration statement. Form 10-S would include the same narrative and financial information required in Form 10-Q but would cover six months. Its U.S. GAAP financial statements would receive an auditor review, not a full audit and would be due within 40 or 45 days, depending on filer status.

 

Related Regulation S-X changes would address financial-statement age requirements, transition reports and technical rules. The proposal would not determine how often companies issue earnings releases or hold earnings calls.

 

Public Comments Show Competing Priorities


The SEC continues posting submissions because of the high response. Its public record includes more than 51,000 standardized letters. More than 50,000 fall under two letter types opposing the proposal and supporting quarterly reporting.

 

In June, the SEC’s Investor Advisory Committee recommended keeping mandatory quarterly reports. The committee found that less frequent disclosure could leave markets without timely information, weakening investor decisions and efficient capital allocation.

 

Supporters focus on compliance costs. Lilly argued that eliminating two Form 10-Q filings could reduce expenses and demands on management. It expects to keep issuing quarterly

earnings releases if it elects semiannual reporting.

 

Voluntary Updates Do Not Offer the Same Transparency


Quarterly reports provide market participants with standardized information at regular intervals. Companies could continue issuing quarterly earnings releases and would remain subject to Form 8-K requirements, but those updates would not necessarily include everything required in Form 10-Q.

 

Federated Hermes warned that different reporting schedules could make companies harder to compare, increase information asymmetry and distort valuations. Individual investors raised similar concerns that longer gaps could give insiders and large institutions an informational advantage.

 

Ernst & Young highlighted an operational issue. Quarterly reporting supports regular financial-close procedures, internal controls, audit committee oversight and earlier identification of reporting problems. Filing less often could therefore affect both public transparency and the discipline surrounding financial reporting.

 

Less Frequent Reporting Could Increase Volatility


When current financial information is unavailable, market participants may depend more heavily on estimates, partial disclosures and expectations. Stock prices may then reflect speculation rather than a company’s current financial performance.

 

When a six-month report is released, the market must absorb a longer period of financial developments at once. The resulting price adjustment could be larger. The Investor Advisory Committee also cited research on similar reporting changes in the United Kingdom and European Union that found earnings surprises, greater stock volatility and reduced analyst coverage, while acknowledging that the U.S. market could respond differently.

 

Standard Premium and Reporting Frequency


As a publicly traded specialty finance company and insurance premium finance provider, Standard Premium relies on timely information to assess financial stability, structure financing and manage risk. Less frequent reporting could make lenders more dependent on internal analysis, borrower-provided information and alternative data.

 

Businesses also need clear visibility into cash flow and operating expenses, including property and casualty insurance premiums. Standard Premium’s flexible premium financing solutions help businesses manage these costs while preserving working capital.

 

The SEC must now review the public record before deciding whether to revise, adopt or withdraw the proposal. Until then, quarterly Form 10-Q reporting remains mandatory.

 

Contact Standard Premium today to learn how our premium financing solutions can help your business preserve working capital and maintain greater financial flexibility.