The SEC proposes allowing public companies to file financial reports twice a year instead of four times, creating a new Form 10-S to replace the current three quarterly filings. A Bloomberg analysis reveals this would conceal revenue declines more than gains, since drops can be sudden while growth is typically gradual. Companies would save roughly $200,000 per year in compliance costs, but reduced regulatory filings could also trigger lower analyst coverage and decreased liquidity for small-caps. The public comment period, open until July 6, 2026, will determine whether the proposal moves forward with safeguards or gets revised. If adopted, calendar-year companies could begin using the semiannual option as early as 2027 or 2028.
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