New York, NY — Sep 9, 2025
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 has 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
