LTSE Petition on Quarterly Reporting Reform Advances to SEC Proposal Stage
The U.S. Securities and Exchange Commission (SEC) announced today that it is proposing a rule to allow public companies the option to report earnings semiannually instead of quarterly. The proposal follows a petition submitted by the Long-Term Stock Exchange in September 2025, which prompted consideration of this reform.
Proposal opens for public comment period
New York, NY – May 5, 2026
The U.S. Securities and Exchange Commission (SEC) announced today that it is proposing a rule to allow public companies the option to report earnings semiannually instead of quarterly. The proposal follows a petition submitted by the Long-Term Stock Exchange in September 2025, which prompted consideration of this reform.
The SEC will open the proposal for public comment for 60 days, initiating a formal process to gather input from companies, investors, and other market participants on potential reforms to reporting frequency in U.S. public markets.
The proposal would make quarterly reporting voluntary rather than mandatory, while preserving all existing requirements for timely disclosure of material information.
“This is an important step toward modernizing market structure to better support long-term value creation,” said Eric Ries, Founder of the Long-Term Stock Exchange. “We founded LTSE to address the structural pressures that drive short-term decision-making in public markets. This proposal reflects a simple idea: companies and investors benefit when disclosure emphasizes long-term fundamentals rather than short-term expectation management.”
The proposal addresses longstanding concerns about the impact of quarterly reporting on corporate decision-making. Decades of research show that quarterly reporting pressure can incentivize companies to focus on near-term results over long-term investment.
Under the proposed change, companies would retain the option to report quarterly, but would no longer be required to do so, while continuing to disclose all material information through existing requirements.
The U.S. previously operated under a semiannual reporting framework for more than a decade during a period of strong economic growth, and many global markets have adopted more flexible reporting approaches without reducing transparency.
The proposal could make public markets more attractive for companies to go public and remain public, strengthening U.S. capital markets over the long term.
About the Long-Term Stock Exchange
The Long-Term Stock Exchange 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 principles, serving companies demonstrating exceptional commitment to sustainable growth and strong governance.
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