FiscalNote Reports Fourth Quarter and Full Year 2025 Financial Results
FiscalNote Holdings, Inc. (NYSE: NOTE) (“FiscalNote” or the “Company”), a global leader in AI-driven policy and regulatory intelligence, today reported financial results for the fourth quarter...
Total Revenue Meets and Adjusted EBITDA Exceeds Guidance for Q4 and Full Year 2025
AI Deployment and Related Organizational Transformation to Drive Workforce Reduction of Approximately 25%; Company Anticipates Positive Free Cash Flow on a Trailing Twelve Month Basis by End of Q1 2027
New Product Initiatives Take Advantage of Large Growth Opportunities in Agentic AI-Driven Data Consumption and Political Prediction Markets
Board of Directors Continues to Review All Strategic Options Available to the Company to Maximize Shareholder Value
Company To Host Conference Call Today at 5:00 PM ET
WASHINGTON: FiscalNote Holdings, Inc. (NYSE: NOTE) (“FiscalNote” or the “Company”), a global leader in AI-driven policy and regulatory intelligence, today reported financial results for the fourth quarter and full year ended December 31, 2025.
The Company reported Q4 2025 revenues of $22.2 million, in line with guidance, and Adjusted EBITDA(1) of $2.5 million, exceeding guidance. During the quarter new corporate logo bookings increased by 39% year-over-year and the share of multi-year contracts among private sector customers increased from 17% to 40% year-over-year. The Company also completed the migration of customers from the legacy FiscalNote platform to the PolicyNote Platform, which exhibits stronger usage and retention metrics.
The Company also is announcing an organizational transformation that will reduce operating expenses significantly, including a workforce reduction of approximately 25%. As a result, excluding one-time restructuring costs, FiscalNote expects to generate positive Free Cash Flow on a trailing twelve-month basis for the period ending March 31, 2027. This reflects a structurally lower cash operating expense base, improved operating leverage, and greater efficiency in how the company delivers its products and supports customers. By reducing cash costs by more than 19% while reallocating investment toward scalable product capabilities and emerging growth initiatives, FiscalNote is strengthening its financial foundation and positioning the business to generate sustainable Free Cash Flow while pursuing high growth opportunities in newly expanding adjacent markets.
At the same time, FiscalNote is leaning into two important new growth initiatives that reflect how demand for policy intelligence is evolving. First, the company is expanding its PolicyNote API and introducing native Model Context Protocol (MCP) support to embed its trusted data and expertise directly into enterprise workflows, developer applications, and AI-driven decision systems. This positions FiscalNote’s intelligence as critical infrastructure for automated policy analysis. Second, FiscalNote is extending its capabilities into the rapidly emerging political prediction market ecosystem, leveraging its proprietary datasets, domain expertise, and institutional credibility to develop new engagement-driven and transactional monetization opportunities. Together, we believe these initiatives significantly expand FiscalNote’s total addressable market and create scalable, capital-efficient pathways for future growth beyond traditional subscription models.
Josh Resnik, CEO and President of FiscalNote, commented, “Our priority is to drive FiscalNote toward consistent positive Free Cash Flow while reshaping the company to capture the next generation of growth opportunities. We are strengthening a more profitable core, positioning our policy intelligence as infrastructure for AI-driven consumption, and extending our capabilities into rapidly developing markets such as prediction ecosystems. This transformation is building a more durable and strategically positioned FiscalNote for the future.”
Fourth Quarter 2025 Financial Highlights(2)
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| (Unaudited) |
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| Three Months Ended December 31, |
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($ in millions) |
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| 2025 |
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| 2024 |
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| % Change |
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Total Revenues |
| $ | 22.2 |
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| $ | 29.5 |
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| (25 | ) | % |
Subscription Revenue as % of Total Revenues |
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| 95 |
| % |
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| 92 |
| % |
| 300 |
| bps |
Gross Profit |
| $ | 17.7 |
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| $ | 24.2 |
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| (27 | ) | % |
Gross Margin |
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| 80 |
| % |
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| 82 |
| % |
| (200 | ) | bps |
Adjusted Gross Profit (1) |
| $ | 19.5 |
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| $ | 25.7 |
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| (24 | ) | % |
Adjusted Gross Margin (1) |
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| 88 |
| % |
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| 87 |
| % |
| 100 |
| bps |
Net Loss |
| $ | (22.9 | ) |
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| $ | (13.4 | ) |
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| 71 |
| % |
Adjusted EBITDA (1) |
| $ | 2.5 |
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| $ | 3.3 |
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| (25 | ) | % |
Adjusted EBITDA Margin (1) |
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| 11 |
| % |
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| 11 |
| % |
| (200 | ) | bps |
Cash and Cash Equivalents |
| $ | 26.9 |
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| $ | 35.3 |
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bps - Basis Points |
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Note: All amounts for the three months ended December 31, 2024 include contributions from: (i) TimeBase, divested on July 1, 2025; (ii) Oxford Analytica and Dragonfly Intelligence, both divested on March 31, 2025; and, (iii) Aicel, divested on October 31, 2024. | ||||||||||||||
Fourth Quarter 2025 and Recent Operational Highlights
- Launched in October CQ&A, a new live briefing series created exclusively for subscribers to CQ and Roll Call content, deepening engagement with the Company's premium editorial brands.
- Introduced in October Bill Comparison in PolicyNote, an AI-powered capability that enables users to instantly compare legislation, track changes across versions, and identify key differences that shape policy outcomes.
- Launched in October an integration unifying grasstops and grassroots advocacy data within PolicyNote, combining stakeholder management and VoterVoice campaign insights into a single workflow to help government affairs teams influence policy with greater precision and speed.
- Unveiled in December AI-powered, personalized Impact Summaries within PolicyNote, a breakthrough capability that delivers tailored, organization-specific policy insights, enabling busy policy professionals to understand legislative and regulatory developments in the context most relevant to their organization.
- Released in December "Epstein Unboxed," a comprehensive, AI-enhanced public database bringing order, searchability, and continuous insight to thousands of previously fragmented investigative records, demonstrating the power of FiscalNote's AI capabilities applied to large-scale document intelligence.
- Achieved in January a major milestone in the Company's product-led growth strategy by completing the migration of all customers from the legacy FiscalNote platform to PolicyNote.
- Announced in February a major expansion into political prediction markets, including the unveiling of a preview experience at PoliticalPredictions.com, a strategic partnership MOU with prediction market technology company 365Prediction, and the engagement of Dr. Laila Mintas - a leading expert in prediction market design and regulation - as a Strategic Advisor, as the Company positions itself to play a defining role in the emerging intersection of policy intelligence and outcome-based forecasting.
- Launched in March the expanded PolicyNote API with native support for the Model Context Protocol (MCP), enabling organizations to embed FiscalNote's authoritative legislative, regulatory, and stakeholder intelligence - spanning Congress, all 50 states, and more than 100 countries - directly into internal systems, AI agents, and enterprise workflows; initial enterprise customers include Lumen Technologies and ICE Data Services, Inc. (a subsidiary of Intercontinental Exchange, owner of numerous futures markets and stock exchanges, including the New York Stock Exchange), reflecting growing demand for trusted, programmatically accessible policy data in AI-driven production environments.
Fourth Quarter 2025 Financial Performance
Revenue(2)
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| (Unaudited) |
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| Three Months Ended December 31, |
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($ in millions) |
| 2025 |
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| 2024 |
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| % Change | |||||
Subscription revenue |
| $ | 21.2 |
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| $ | 27.1 |
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| (22 | ) | % |
Advisory, advertising, and other revenue |
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| 1.0 |
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| 2.4 |
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| (58 | ) | % |
Total revenues |
| $ | 22.2 |
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| $ | 29.5 |
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| (25 | ) | % |
For Q4 2025, subscription revenue declined $5.9 million, or 22%, versus prior year, due primarily to FiscalNote's previously announced divestitures of Aicel Technologies, Oxford Analytica, Dragonfly Intelligence, and TimeBase.
On a pro forma basis(5), excluding the impact of the divestitures, subscription revenue for Q4 2025 declined $1.9 million, or approximately 8%, reflecting the trends in ARR and NRR discussed below.
For Q4 2025, advisory, advertising, and other revenue declined $1.4 million, or 58%, versus prior year, due primarily to the previously announced divestitures and discontinuation of certain non-strategic products.
Key Performance Indicators (KPIs)(2)(3)(5)
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| As of December 31, |
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($ in millions) |
| 2025 |
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| 2024 |
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| % Change |
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Annual Recurring Revenue (ARR) |
| $ | 84.1 |
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| $ | 107.0 |
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| (21 | )% |
Pro Forma ARR(3)(5) |
| $ | 84.0 |
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| $ | 92.0 |
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| (9 | )% |
As of December 31, 2025, ARR, on an as reported basis, was $84.1 million.(2) On an annual basis this represents a $23.0 million or 21% decline year over year. On a pro forma basis(5) (excluding the divested businesses Aicel Technologies, Oxford Analytica, Dragonfly Intelligence, and TimeBase), ARR declined $8.0 million, or approximately 9%, year over year. The year-over-year decline was primarily due to previously disclosed execution challenges addressed in Q1, customer engagement issues in the Company’s legacy products, and atypical instability in the US federal sector during the year. The Company is working to address these issues through operational improvements in its private and public sector go-to-market teams and approach, as well as continued improvements in the PolicyNote platform. Q4 NRR(5) was 96% on a pro forma basis. Q4 ending ARR was $0.7 million lower than Q3 primarily due to cancellations among a few large enterprise customers who had not yet migrated to PolicyNote, alongside broader macroeconomic budget constraints.
Operating Expenses(2)
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| (Unaudited) |
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| Three Months Ended December 31, |
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($ in millions) |
| 2025 |
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| 2024 |
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| % Change |
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Cost of revenues, including amortization |
| $ | 4.5 |
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| $ | 5.3 |
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| (15 | )% |
Research and development |
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| 2.1 |
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| 2.9 |
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| (27 | )% |
Sales and marketing |
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| 5.9 |
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| 7.6 |
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| (22 | )% |
Editorial |
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| 3.4 |
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| 4.8 |
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| (28 | )% |
General and administrative |
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| 10.6 |
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| 12.3 |
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| (14 | )% |
Amortization of intangible assets |
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| 1.9 |
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| 2.4 |
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| (20 | )% |
Goodwill impairment |
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| 12.4 |
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| - |
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| * |
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Total operating expenses |
| $ | 40.8 |
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| $ | 35.2 |
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| 16 | % |
* - percentage change is greater than +/- 100% |
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In Q4 2025, total operating expenses increased $5.6 million, or 16%, versus prior year, due primarily to the goodwill impairment charge recorded in the fourth quarter of 2025, partially offset by the impact of the previously announced divestitures, ongoing efficiency measures and operating discipline initiatives, and the elimination of costs associated with sunset products.
Excluding amortization expense, stock-based compensation, the impact of the previously announced divestitures, transaction-related costs, severance, goodwill impairment, and other non-cash charges, Q4 2025 total operating expenses declined $2.6 million, or 12%.
Full Year 2025 Financial Highlights
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| (Unaudited) |
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| Year Ended December 31, |
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