The U.S. Securities and Exchange Commission (SEC) has sparked debate with its proposal to shift from quarterly to semiannual earnings reporting. While the SEC’s stated aim might be to alleviate short-term pressures, a recent analysis argues that such a move would be detrimental, reducing transparency, increasing market volatility, and potentially fostering a surge in insider trading. Instead of mandating less information, the focus should be on encouraging best practices in quarterly disclosures, as exemplified by some of America’s largest and most astute companies.
The Case Against Semiannual Reporting
The core argument against the SEC’s proposed shift is its potential to undermine market integrity. According to the analysis, eliminating quarterly earnings as a basic premise is a ‘bad idea’ because it ‘reduces transparency, increases volatility, and is likely to create a surge in insider trading.’ Furthermore, it is deemed unlikely to ‘accomplish little to move us away from the short-termism surrounding quarterly earnings today.’ This perspective suggests that rather than solving the problem of short-term focus, less frequent reporting could exacerbate existing issues by creating information vacuums that benefit well-connected insiders at the expense of the broader investing public.
Pioneers in Investor Communication
Even without regulatory mandates, several prominent companies have independently developed approaches to earnings reporting that are lauded by their shareholders. These firms demonstrate that effective communication doesn’t always mean more elaborate presentations, but rather a thoughtful alignment with investor needs and corporate culture.
- Berkshire Hathaway: The conglomerate, led by Warren Buffett, famously eschews quarterly earnings calls entirely. Historically, Q1 results are released alongside an 8-K filing and a brief slide presented at the annual meeting. Buffett leverages the annual meeting’s Q&A session to provide additional context and color to the financial figures. This tradition continued with Greg Abel’s first quarter (Q1 2026) results, which were released on a Saturday with no accompanying call, just the report. This minimalist approach has been consistently supported by its loyal shareholder base.
- Costco: The retail giant has a long-standing policy of refusing to provide forward guidance, and its earnings calls are known for being ‘famously short and unadorned.’ To ensure investors remain well-informed, Costco’s CFO provides monthly comparable sales updates. This proactive, consistent flow of operational data renders the quarterly calls largely ‘uneventful,’ as key performance indicators are already known.
Streamlined Disclosures and Anti-‘IR Theater’
Beyond the giants, even smaller or more traditional companies are finding ways to simplify their reporting while maintaining transparency, often by cutting out what some consider unnecessary ‘investor relations theater.’
- Tootsie Roll: As a smaller public company, Tootsie Roll offers a stark example of streamlined reporting. Its Q1 2026 release, issued on April 22, 2026, was a single-page press release filed as Exhibit 99.1 to an 8-K. This document contained ‘no conference call, no webcast, no slide deck, no management discussion, no analysis – just the naked release itself.’ Notably, it excluded a balance sheet, cash flow statement, or segment breakdown. Chairman Ellen Gordon provided only a ‘brief narrative and a four-line summary table,’ with ‘precisely zero forward guidance.’
- Loews Corporation: The Tisch family, who run Loews, opt for pre-recorded calls. Instead of a live Q&A, they file a written set of ‘Earnings Remarks’ as an exhibit to their 8-K in PDF form, similarly providing no forward guidance.
- Google: The tech behemoth also pre-records its management remarks, utilizing a script recorded up to 48 hours in advance of the official release.
- Constellation Software: Mark Leonard, the reclusive billionaire behind Constellation Software, openly expresses disdain for ‘IR theater.’ He shares few speculative opinions beyond his shareholder letters and famously asked the board to reduce his salary to zero, underscoring his focus on long-term value creation over quarterly fanfare.
Innovating Investor Engagement: The Robinhood Model
In contrast to the minimalist approaches, some companies are reinventing the earnings call to enhance engagement and ‘improve the branding of being a public company,’ as CEO Vlad Tenev of Robinhood stated. This is particularly relevant in an era where fewer companies are choosing to go public.
Robinhood’s approach is highly innovative: they livestream their video earnings calls on multiple platforms, including Tenev’s X account, often featuring an in-person audience at a physical venue. The Q1 2026 call on April 28 was notably held outdoors at their Menlo Park HQ, potentially marking ‘the first-ever outdoor earnings call in history.’ To foster direct engagement, stock ownership serves as the entry ticket for asking questions. The audience is diverse, comprising ‘retail shareholders, ‘finance content creators, analysts, and institutional shareholders’.’ The call uniquely begins with a Q&A session facilitated by Say Technologies, where shareholder questions are submitted in advance and ‘upvoted’ during the week leading up to the call. This model represents a significant departure from traditional formats, aiming for broader, more interactive participation.
Other companies like Tesla, Amazon, Opendoor, Netflix, Spotify, and Palantir also employ various innovative methods to communicate with their investors. The overarching message from these diverse examples is clear: the SEC should prioritize encouraging ‘more information sharing, greater transparency, and more frequent earnings reporting — not less.’ Allowing a reduction in information, rather than mandating an increase, is seen as a ‘step in the wrong direction’ for market health and investor confidence.
