NAM to SEC: Allow Manufacturers the Option of Semiannual Reporting

July 10, 2026


A proposed rule to allow public companies to provide financial reporting on a semiannual rather than a quarterly basis would reduce compliance costs for manufacturers, the NAM told the Securities and Exchange Commission this month.

What’s going on: “Semiannual reporting could be an attractive option for corporate issuers of all sizes, depending on a company’s investor base, maturity and capital needs,” the NAM told the SEC in response to a call for public comment on the draft rulemaking, which was issued in May. 

  • “Capital spent on quarterly reporting is diverted from R&D, new equipment, job creation and worker benefits; absent a clear investor benefit, these funds are not being well used to grow the company and increase investor returns.”
  • Allowing companies to file one Form 10-S, instead of three Form 10-Q filings each year, would let “executives and directors … engage with their investors and other stakeholders and decide on the most appropriate frequency, given the company’s resources, capital needs, and growth trajectory,” the NAM said.

Why it’s important: Implementing the draft rule could result in significant savings, a lessened accounting burden and greater competitiveness for companies.

  • A company could see reduced “compliance costs equal to $198,000 per fiscal year if it were to opt for semiannual reporting,” according to the SEC.
  • It would also help companies with limited accounting support and make domestic manufacturers more competitive with companies in Europe and Asia where twice-a-year reporting is generally allowed.
  • Semiannual reporting may also be appealing to low-revenue startups that have a longer-term growth trajectory. 

What should be done: The proposed draft rule is a good start toward streamlining financial reporting requirements, the NAM said, but for even greater benefit to manufacturers, the SEC should pare back Form 10-Q’s duplicative filing requirements.

The last word: “Commonsense rules [such as the proposal] … will provide decision-useful information to investors while reducing compliance burdens for public companies of all sizes,” NAM Senior Director of Corporate Finance Policy Ted Allen and NAM Vice President of Domestic Policy Jake Kuhns concluded.