LTSE Will Petition SEC to Allow Public Companies to Reduce Reporting Frequency
LTSE Will Petition SEC to Allow Public Companies to Reduce Reporting Frequency
The Long-Term Stock Exchange (LTSE) today announced that it plans to petition the SEC to allow public companies to report earnings semi-annually instead of quarterly. This marks the first formal regulatory proposal to reduce mandatory reporting frequency since current requirements were established.
The petition potentially affects thousands of publicly traded companies currently bound by quarterly reporting requirements. While the Securities Exchange Act of 1934 provided the legal framework for periodic reporting, the SEC initially required only semi-annual reports starting in 1955 before moving to quarterly reporting in 1970.
LTSE Founder and best-selling author Eric Ries said, “This has been a longtime dream of the business community and represents the culmination of efforts by many long-term investors, companies, and policymakers over decades. The time has come to create a capital markets system that rewards patient capital and long-term thinking."
The proposal addresses longstanding concerns about quarterly reporting's impact on corporate decision-making. Business and political leaders, including the Trump administration (in 2018) and the U.S. Chamber of Commerce, have suggested that companies should report every six months instead of quarterly. Extensive academic research has documented the negative effects of quarterly reporting pressure on long-term value creation.
For long-term investors, the change could lead to more strategic company insights while reducing short-term volatility and better alignment of corporate management to investor interests. Under the proposed guidelines, all companies would retain the option to release quarterly earnings but would not be required to do so.
This focus on long-term value creation directly addresses systemic market pressures that currently favor short-term thinking.
“As CEOs, we absolutely have to deliver on short-term metrics; both our customers and investors depend on it,” said Maliz Beams, CEO of LTSE. “But the key is including short-term targets as deliberate mile markers on the path to long-term value creation. This petition takes a critical step toward enabling genuinely long-term companies to focus on sustainable growth rather than quarterly noise.”
About the Long-Term Stock Exchange
LTSE Group was founded by Eric Ries, creator of the Lean Startup methodology, to foster long-term value creation by evolving capitalism to support better business practices. LTSE operates the only SEC-approved stock exchange with listing standards that codify long-term practices, serving companies demonstrating exceptional commitment to sustainable growth and strong governance. The company also provides advisory services for late-stage private market companies.
For media inquiries
Steve Goldstein, steve@ltse.com
