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1. Company Snapshot

1.a. Company Description

FiscalNote Holdings Inc.operates as technology and data company that delivers critical legal data and insights worldwide.It combines artificial intelligence technology, machine learning, and other technologies with analytics, workflow tools, and expert research.


The company delivers that intelligence through its suite of public policy and issues management products, as well as powerful tools to manage workflows, advocacy campaigns, and constituent relationships.It serves a customer base that includes businesses comprising the Fortune 100 companies, government agencies, law firms, professional services organizations, trade groups, and non-profits.The company is headquartered in Washington, District of Columbia.

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1.b. Last Insights on NOTE

FiscalNote Holdings, Inc.'s recent performance was negatively impacted by a 20% decline in Q2 revenue. The company's quarterly loss narrowed to $0.08 per share, but still missed expectations. A balance sheet realignment and divestiture of TimeBase for $6.5 million also occurred. Conversely, the company has made progress with its PolicyNote platform, including an expanded and upgraded reporting suite. Additionally, FiscalNote announced a 1-for-12 reverse stock split, which may help boost shareholder value. (Source: FiscalNote Holdings, Inc. Q2 2025 Earnings Call Transcript).

1.c. Company Highlights

2. FiscalNote's Q3 2025 Earnings: A Stabilization Story

FiscalNote reported revenue of $22.4 million for Q3 2025, in line with guidance, and adjusted EBITDA of $2.2 million, exceeding expectations. This translates to an adjusted EBITDA margin of 10%, marking the fifth consecutive quarter of margins at or above 10%. The company's EPS came in at -$1.73, worse than the estimated -$0.84. The revenue and adjusted EBITDA figures demonstrate the company's focus on cost management and operating leverage. With a P/S Ratio of 0.34, the market seems to have already priced in the revenue stabilization.

Publication Date: Nov -29

📋 Highlights
  • Revenue & EBITDA Performance:: Q3 revenue reached $22.4M (in line with guidance), and adjusted EBITDA hit $2.2M (exceeding guidance), maintaining 10% margins for the fifth consecutive quarter.
  • Product Innovation:: Launched AI-powered tools like legislative drafting, social listening, and Bill Comparison, enhancing policy analysis capabilities.
  • ARR Stabilization:: ARR remained steady at $84.8M with modest growth, signaling core business stability and strategic execution effectiveness.
  • Corporate Sales Momentum:: Enterprise client win rates improved by 400 bps in Q3 (500 bps YTD), with rising average contract values (ACVs) driven by global data packages.
  • Cost Efficiency & Guidance:: Cost reductions of 23-36% across departments and updated 2025 guidance to $95M–$96M revenue and $10M adjusted EBITDA, maintaining prior ranges.

Product Innovation and ARR Stabilization

The company's product innovation continues to drive progress, with enhancements to policy notes, including AI-powered legislative drafting and Bill Comparison, an AI-driven capability. Annual Recurring Revenue (ARR) remained steady at $84.8 million, signaling an initial stabilization of the core business. As Josh Resnik mentioned, "We've done some work to restructure our global data packages, and I think have done a very good job bringing those to market." This restructuring has contributed to higher average contract values (ACVs) and improved win rates among enterprise clients.

Operational Efficiency and Cost Management

FiscalNote has achieved significant cost reductions across various segments, with cost of revenue decreasing by 23% year-over-year, R&D by 36%, sales and marketing by 31%, and editorial by 30%. The company's focus on automation and internal efficiencies is expected to drive more advanced features for customers and improve productivity. With an EV/EBITDA ratio of -7.95, the market is pricing in significant growth challenges.

Outlook and Valuation

The company has updated its full-year revenue guidance to $95 million to $96 million, with adjusted EBITDA projected to be approximately $10 million. Analysts estimate next year's revenue growth at -1.3%. Given the current valuation metrics, including a P/E Ratio of -0.56 and a P/B Ratio of 0.41, it appears that the market has already factored in the challenges. The company's focus on operational efficiency and product innovation will be crucial in driving future growth and improving profitability.

Challenges Ahead

FiscalNote has been impacted by the federal government shutdown, particularly in the federal segment of their business, with an estimated impact of $2 million to $3 million for the full year. The company's ability to navigate this challenge and continue to drive growth through its product innovation and operational efficiency will be closely watched by investors. With a Net Debt / EBITDA ratio of -6.22, the company's capital structure appears to be healthy, providing long-term flexibility to execute on its strategy.

3. NewsRoom

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FiscalNote Unveils New Breakthrough in PolicyNote: AI-Powered, Personalized Impact Summaries

Dec -03

Source: businesswire.com

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FiscalNote Continues Global Momentum Amid Ongoing PolicyNote Adoption

Nov -19

Source: businesswire.com

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FiscalNote Holdings, Inc. (NOTE) Q3 2025 Earnings Call Transcript

Nov -07

Source: seekingalpha.com

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FiscalNote Holdings, Inc. (NOTE) Reports Q3 Loss, Lags Revenue Estimates

Nov -07

Source: zacks.com

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FiscalNote Reports Third Quarter 2025 Financial Results

Nov -06

Source: businesswire.com

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FiscalNote to Report Third Quarter 2025 Financial Results & Host Conference Call on November 6, 2025

Oct -30

Source: businesswire.com

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FiscalNote Unifies Grasstops and Grassroots Influence with Advocacy Data Integration into PolicyNote

Oct -29

Source: businesswire.com

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FiscalNote Introduces AI-Powered Bill Comparison in PolicyNote

Oct -16

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.41%)

6. Segments

Subscription

Expected Growth: 2.5%

FiscalNote Holdings, Inc.'s 2.5% subscription growth is driven by increasing demand for policy and regulatory data, expansion into new markets, and strategic partnerships. The company's AI-powered platform provides real-time insights, attracting new customers and driving retention. Additionally, the growing need for businesses to navigate complex policy landscapes fuels subscription growth.

Advisory

Expected Growth: 1.8%

FiscalNote Holdings, Inc.'s 1.8% growth is driven by increasing demand for policy and regulatory data, expansion into new markets, and strategic acquisitions. The company's AI-powered platform provides real-time insights, enabling clients to navigate complex policy landscapes. Growing adoption in industries such as finance, healthcare, and technology, as well as increasing government spending on digital transformation, further support this growth.

Other

Expected Growth: 1.2%

FiscalNote Holdings, Inc.'s 1.2% growth is driven by increasing demand for its AI-driven policy and advocacy software, expansion into new markets, and strategic acquisitions. The company's ability to provide real-time policy data and analytics has attracted a growing customer base, resulting in revenue growth.

Advertising

Expected Growth: 2.2%

FiscalNote Holdings, Inc.'s 2.2% growth in Advertising is driven by increasing demand for digital advocacy, expansion into new markets, and strategic partnerships. Additionally, the company's AI-powered platform and data analytics capabilities enhance customer engagement, leading to higher advertising revenue.

Books

Expected Growth: 1.5%

FiscalNote Holdings, Inc.'s 1.5x growth in Books segment is driven by increasing demand for digital content, expansion into new markets, and strategic partnerships. Additionally, the company's AI-powered policy data and analytics platform is attracting more customers, leading to higher sales of its books and research reports.

7. Detailed Products

FiscalNote

A platform that provides real-time information on government legislation, regulations, and policy changes

CQ

A provider of legislative tracking and advocacy solutions

Omnibus

A platform that provides data and analytics on government contracts and procurement

FiscalNote State

A platform that provides real-time information on state and local government legislation and policy changes

FiscalNote Federal

A platform that provides real-time information on federal government legislation and policy changes

VoyagerAI

An AI-powered platform that provides predictive analytics and forecasting on government policy and legislation

8. FiscalNote Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for FiscalNote Holdings, Inc. is medium due to the presence of alternative solutions and services in the market.

Bargaining Power Of Customers

The bargaining power of customers for FiscalNote Holdings, Inc. is low due to the company's strong brand reputation and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers for FiscalNote Holdings, Inc. is medium due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants for FiscalNote Holdings, Inc. is high due to the low barriers to entry in the market and the presence of potential competitors.

Intensity Of Rivalry

The intensity of rivalry for FiscalNote Holdings, Inc. is high due to the presence of established competitors in the market and the need to differentiate itself.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.84%
Debt Cost 6.05%
Equity Weight 16.16%
Equity Cost 6.05%
WACC 6.05%
Leverage 518.84%

11. Quality Control: FiscalNote Holdings, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Innodata

A-Score: 4.7/10

Value: 0.0

Growth: 9.3

Quality: 8.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
NCR Voyix

A-Score: 4.3/10

Value: 8.1

Growth: 3.0

Quality: 6.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
BigBear.ai

A-Score: 3.6/10

Value: 6.2

Growth: 1.7

Quality: 3.6

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Thoughtworks

A-Score: 3.6/10

Value: 7.6

Growth: 3.2

Quality: 4.7

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
FiscalNote Holdings

A-Score: 3.6/10

Value: 9.6

Growth: 6.8

Quality: 4.3

Yield: 0.0

Momentum: 0.0

Volatility: 0.7

1-Year Total Return ->

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Stock-Card
Digimarc

A-Score: 2.8/10

Value: 6.8

Growth: 3.8

Quality: 4.5

Yield: 0.0

Momentum: 0.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.99$

Current Price

1.99$

Potential

-0.00%

Expected Cash-Flows