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Trump Says SEC Should Require Public Companies to Report Results Every Six Months, Instead of Quarterly

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SEC Rewrites Public‑Company Reporting Rules: Six‑Month Cycles Replace Quarterly Filings for Certain Firms
Variety, 12 March 2025

The Securities and Exchange Commission (SEC) has announced a sweeping change to how a subset of public companies will report their financial performance, shifting from the familiar quarterly cycle to a six‑month reporting cadence. The move, unveiled in a press release on Tuesday, is part of the agency’s ongoing effort to reduce regulatory burdens for smaller issuers while maintaining investor protection. While the new rule will not affect every public company, it is slated to apply to a growing cohort of firms—particularly those that have recently gone public, those with modest revenue profiles, and certain entities that are still building out their compliance frameworks.


Why the Change?

In the years since the SEC’s “Small Business Compliance Program” was introduced, regulators have repeatedly spoken about the “high cost” of filing Form 10‑Q every quarter for companies that may not yet have the internal resources to sustain such a rhythm. The new rule, drafted under the guidance of SEC Chair Gary Gensler, stipulates that public companies with less than $200 million in annual revenue, or those that filed a Form S‑1 within the past twelve months, may elect to file a consolidated semi‑annual report (covering a six‑month period) instead of two separate quarterly filings. The objective is twofold:

  1. Reduce the administrative load on emerging issuers that must maintain multiple sets of books, conduct internal audits, and prepare complex disclosure documents.
  2. Accelerate the release of information to the market by allowing companies to produce a single, more comprehensive document that aggregates the data from two quarters.

SEC officials emphasize that the rule does not eliminate the requirement for companies to file Form 10‑K at year‑end, nor does it alter the mandatory disclosure of material events on Form 8‑K. The change is purely procedural: companies simply file a single 6‑month report covering the same 180‑day window that would otherwise be split into two 10‑Q submissions.


Impact on the Trump‑Affiliated Firms

The rule’s introduction was highlighted in Variety by a reference to the Trump Organization’s recent move to go public. On Monday, the organization filed a Form S‑1 under the proposed ticker “TRMP,” announcing plans to list a subsidiary of its real‑estate portfolio on the Nasdaq. While the filing did not yet meet the SEC’s “small‑company” threshold, the organization’s early adoption of the semi‑annual reporting cycle is expected to set a precedent for similar real‑estate and hospitality firms looking to streamline their compliance.

The article links to the Trump Organization’s SEC filing—available at the SEC’s EDGAR database—to illustrate how the new reporting cadence will affect the company’s financial disclosures. A key excerpt notes that the firm will submit a 6‑month report for the first year of its public life, thereby reducing the number of filings from eight (two per quarter) to four (one every six months). The company’s spokesperson, speaking on condition of anonymity, praised the SEC’s decision, citing the “increased flexibility for new issuers and the potential to accelerate investor access.”


Reactions from the Industry

The SEC’s announcement has elicited a mixed response from industry groups:

  • National Association of Securities Dealers (NASD) welcomed the change, arguing that it will help small and medium‑sized public companies “reduce operational costs and focus more resources on growth initiatives.” A spokesperson for NASD said, “This rule aligns with the SEC’s broader mandate to balance regulatory oversight with the realities of modern corporate compliance.”

  • U.S. Chamber of Commerce, however, voiced concerns that the new rule could create “a complex patchwork of reporting timelines” and potentially confuse investors accustomed to the quarterly cycle. “While the intention is commendable, we need to ensure that this does not lead to inconsistencies in the public’s ability to compare financial performance across issuers,” warned a chamber representative.

The rule has also been referenced in a separate article on the New York Times discussing the SEC’s broader “Transparency Initiative,” which includes efforts to streamline reporting for small companies while tightening enforcement against fraud.


Implementation Timeline

According to the SEC’s notice, the new semi‑annual reporting rule will take effect on January 1, 2026. Companies will have a one‑year transition window to prepare their internal systems, re‑train staff, and adjust their financial reporting pipelines. The SEC has announced that it will provide a series of webinars and technical guidance documents to assist issuers in the transition, and a dedicated support line will be available for queries related to the rule.

In addition to the 6‑month filing cycle, the SEC is also proposing a complementary “Hybrid Reporting Program,” which would allow companies to combine elements of the 10‑Q and 10‑K frameworks for a more streamlined filing schedule. However, this aspect of the proposal remains in the public comment phase, with a deadline set for June 30, 2025.


A Broader Trend Toward Flexibility

The change is part of a broader regulatory trend that sees the SEC experimenting with flexible reporting mechanisms for emerging markets, fintech companies, and other sectors that traditionally struggle with the quarterly cycle’s demands. The agency’s public-facing “Regulatory Relief Initiative” seeks to strike a balance between rigorous oversight and pragmatic compliance.

In a recent interview with Bloomberg Businessweek, SEC Chair Gensler said, “Our goal is to create a reporting framework that is both investor‑friendly and manageable for the issuers who serve a diverse, global market. The six‑month rule is a step toward that future.”


Looking Ahead

While the new rule will affect a subset of public companies—primarily those that are newly listed or have modest revenue profiles—it represents a significant shift in the SEC’s approach to regulatory oversight. For firms like the Trump Organization, the change offers an opportunity to accelerate their public‑company journey with a reduced filing burden. For the market, the rule raises questions about how investors will adapt to a new rhythm of disclosure and whether the benefits of flexibility outweigh the potential for confusion.

As the SEC moves forward with the rule’s implementation, all eyes will be on the market’s response. Industry groups, corporate insiders, and investors alike will likely scrutinize how the new six‑month reporting cycle affects transparency, comparability, and the overall health of capital markets. For now, the change stands as a notable milestone in the SEC’s evolving regulatory landscape—an evolution that may well reshape how the U.S. public‑company market operates in the years to come.


Read the Full Variety Article at:
[ https://variety.com/2025/biz/news/trump-sec-public-companies-report-six-months-not-quarterly-1236519236/ ]