"Quarterly earnings reports are a headache. There's the hassle of getting the 10-Q together, updating financial data that may or may not be indicative of a company's long-term potential or financial health. Analysts pepper you with questions; shareholders react. No wonder so many CEOs prefer to stay private. President Trump wants to do away with quarterly reports, arguing in a Truth Social post yesterday that doing so will "save money and allow managers to focus on properly running their companies.""
"For QXO chairman and CEO Brad Jacobs, who has taken several companies public, it's part of the package. As he told me earlier this year, before stepping up to ring the bell of the New York Stock Exchange for the ninth time, the 10-Q reinforces the credibility and transparency that comes with being public. "You get a report card every 90 days," he told me."
Quarterly earnings reports create significant administrative burdens, from assembling 10-Q filings to updating short-term financial metrics and answering analysts and shareholders. President Trump proposed eliminating quarterly reporting to cut costs and allow managers to focus on running companies, and the SEC is reportedly prioritizing the proposal. Many CEOs complain about the cadence but acknowledge that quarterly filings enforce discipline, internal rigor, accountability, credibility, and transparency. Executives describe quarterly results as a regular report card and a mechanism for investors to signal approval and offer practical feedback. Reducing pressure to provide short-term guidance is a frequently cited potential reform.
Read at Fortune
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