TLDR The SEC has proposed letting public companies report semi-annually instead of quarterly, replacing three 10-Q filings with one new Form 10-S. Gaming stocks like Flutter, DraftKings, and Sportradar are all down sharply over the past year. Semi-annual reporting could reduce pressure on companies to hit short-term targets each quarter. The SEC’s chair says the change could make going public more attractive — part of his “Make IPOs Great Again” push. The public comment period closes July 6, and the proposal faced similar pushback when it was floated in 2018.
The US Securities and Exchange Commission proposed in early May to let public companies file financial results twice a year instead of four times. Under the plan, the three quarterly reports filed via Form 10-Q would be replaced by a single semi-annual report using a new form called Form 10-S.
Companies would have either 40 or 45 days from the end of each half-year period to file, depending on their status.
The proposal also includes changes to SEC Regulation S-X, which sets rules for how financial statements must be presented. The agency says these changes would simplify existing requirements.
The US has used quarterly reporting since 1970. Before that, from 1955 to 1970, semi-annual reporting was the standard. Prior to 1955, there was no formal schedule at all.
A public comment period is open until July 6. More than 1,900 comments have already been submitted, with many opposing the change.
Gaming Stocks Have Struggled
Several major gaming stocks have posted steep losses over the past year. Flutter is down 62% over the last 12 months. DraftKings is down 33%. Sportradar has fallen 40%. Las Vegas Sands is down 25% year-to-date. Aristocrat has lost 20% over the past year.
Caesars is up 25% this year following a buyout