Semi-Annual Reporting for Venture Issuers: A New Disclosure Strategy

Eligible venture issuers in Canada can now move from quarterly to semi-annual reporting.

As of March 19, 2026, the Canadian Securities Administrators (CSA) introduced the Semi-Annual Reporting (SAR) Pilot. Implemented through Coordinated Blanket Order 51-933, it allows certain issuers listed on the TSX Venture Exchange (TSXV) or the Canadian Securities Exchange (CSE) to optionally skip first and third quarter financial filings.

This reduces overall reporting burdens and costs. It also creates longer gaps between financial reports that companies must manage through more deliberate communication with the market.

What Changed and Why It Matters

The new framework allows qualifying venture issuers with annual revenue of 10 million dollars or less to report twice a year instead of four times, subject to additional eligibility criteria.

Issuers continue to file semi-annual and annual financial statements, but no longer need to file first and third quarter reports under National Instrument 51-102.

This change is intended by the CSA to reduce the reporting burden on smaller public companies while maintaining investor protection. For many venture issuers, preparing quarterly financial reports requires significant time, cost, and internal resources that may outweigh the benefit to investors.

As a result, fewer required financial filings ease these demands. However, issuers must still promptly disclose material information through news releases, making communication between reporting periods more important.

The CSA has also indicated that it will use insights from this pilot to inform a broader rule-making initiative, meaning semi-annual reporting could be expanded to more issuers over time.

Semi-Annual Reporting for Venture Issuers Changes How Disclosure Is Delivered

At first glance, the new optional semi-annual reporting appears to be a simple reduction in reporting frequency.

However, in practice, it changes how companies structure and deliver disclosure.

Under quarterly reporting, communication is anchored to fixed filing cycles. With semi-annual reporting, those anchors are reduced, creating a longer period between formal financial updates.

This effectively introduces a new disclosure strategy that is less tied to reporting deadlines and more dependent on how companies communicate with the market over time.

Managing the Information Gap Between Reporting Periods

The shift from quarterly to semi-annual reporting is best understood visually.

The longer gap between financial reports can be understood as an information gap. Without consistent communication, longer gaps between reporting periods can increase uncertainty for investors. Strong issuers will manage this gap proactively rather than reactively.

Press releases become central to this approach.

Companies can use them to maintain visibility by sharing operational progress, key milestones, and updates that help investors understand how the business is evolving between reporting periods. This helps maintain continuity in disclosure between financial reports.

They also remain essential for communicating material information. Timely disclosure obligations continue to apply, and press releases remain the primary tool for ensuring that material developments are broadly disseminated.

Consistent communication also plays an important role in maintaining investor confidence. Extended periods without updates can create uncertainty, even when performance is stable. Regular, well-structured updates help reinforce credibility.

Finally, press releases can support alignment with upcoming financial reporting. By setting expectations ahead of semi-annual filings, companies can provide clearer context and reduce the risk of unexpected results.

Together, these practices form a more deliberate and structured communication approach.

Why This Change Benefits Venture Issuers

For many smaller public companies, this shift offers several practical advantages:

• Reduced time and cost associated with preparing financial statements and MD&A

• Increased focus on operations and long-term growth

• Less emphasis on short-term performance fluctuations

• Continued transparency through ongoing disclosure requirements

These advantages allow companies to operate more efficiently while still meeting their disclosure obligations.

Important Limitations to Consider

Semi-annual reporting is not appropriate for every issuer.

The exemption may not be available in certain financing situations, such as when an issuer is using a short form or shelf prospectus, in which more frequent financial disclosure may still be required.

Issuers are also required to announce their adoption of semi-annual reporting through a news release that includes prescribed language.

Because of these constraints, companies should consider their capital markets plans and investor expectations before making the transition.

A Broader Shift Beyond Canada

This change reflects a wider global trend. Markets such as the United Kingdom have long operated under semi-annual reporting frameworks. Quarterly reporting was introduced in 2007 and removed in 2014, returning to a semi-annual model.

In the United States, the U.S. Securities and Exchange Commission (SEC) has explored similar changes, including a 2018 request for comment on quarterly reporting following calls from Donald Trump to reduce reporting frequency. In 2025, Trump also expressed renewed interest in semi-annual reporting structures for public companies.

No rule changes have been implemented to date.

Overall, this points to a broader shift toward balancing regulatory efficiency with meaningful disclosure.

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Semi-annual reporting for venture issuers is not simply a reduction in filings.

It introduces a new disclosure strategy.

Fewer required reports place greater emphasis on how companies communicate between reporting periods. Success under this model depends on maintaining clear, consistent, and timely communication with the market.

For issuers that adopt semi-annual reporting, disclosure becomes less about meeting fixed deadlines and more about delivering the right information at the right time.

That is where a well-structured press release strategy becomes essential.