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FiscalNote Holdings (NOTE)
NYSE:NOTE
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FiscalNote Holdings
(NYSE:NOTE)
42Neutral
FiscalNote Holdings (NOTE) vs. S&P 500 (SPY)
Market Cap
$112.86M
Dividend YieldN/A
Average Volume (3M)2.35M
Price to Earnings (P/E)18.1
Beta (1Y)2.93
Revenue Growth-9.33%
EPS GrowthN/A
CountryUS
Employees585
SectorTechnology
Sector Strength39
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.04
Shares Outstanding136,402,000
10 Day Avg. Volume1,484,715
30 Day Avg. Volume2,349,661
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.11
Price to Cash Flow (P/CF)-11.70
P/FCF Ratio191.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$2.94Price Target Upside272.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
FiscalNote Holdings Business Overview & Revenue Model
Company DescriptionFiscalNote Holdings (NOTE) is a global technology and data company that specializes in providing information services, software, and workflow tools to organizations for managing and understanding regulations, legislation, and other government-related data. The company operates in sectors such as legal, governmental, and compliance, delivering insights and analytics through its proprietary platforms to help clients make informed decisions.
How the Company Makes MoneyFiscalNote Holdings generates revenue primarily through a subscription-based model, offering its cloud-based software platforms to businesses and government entities. These platforms provide access to regulatory and legislative data, analytics, and workflow automation tools. The company also earns income from consulting services and customized solutions tailored to specific client needs. Key revenue streams include recurring subscription fees, professional services, and partnerships with governmental and non-governmental organizations that require comprehensive policy analysis and data-driven insights.
FiscalNote Holdings Financial Statement Overview
Summary
FiscalNote Holdings demonstrates strong revenue growth and a decent gross profit margin, reflecting potential in its core operations. However, the consistent lack of profitability, high leverage, and negative cash flows suggest financial instability. The company needs to focus on cost management and cash flow improvements to ensure long-term sustainability.Income Statement
FiscalNote Holdings shows consistent revenue growth over the years, but profitability remains a challenge. The TTM (Trailing-Twelve-Months) gross profit margin is healthy at 67.5%, yet the company struggles with negative net profit and EBIT margins due to high operational costs. Revenue growth is evident, but the inability to turn this into net profits is a significant concern.45
Neutral
Balance Sheet
The company has improved its equity position over recent periods, but the balance sheet is still leveraged with a high debt-to-equity ratio of 1.83 in the TTM (Trailing-Twelve-Months). The equity ratio of 29.2% suggests a moderate reliance on equity financing, which is a positive sign; however, the balance sheet stability is hindered by substantial liabilities.40
Negative
Cash Flow
Cash flow analysis reveals some troubling signs, with negative operating cash flow and free cash flow in the TTM (Trailing-Twelve-Months). The operating cash flow to net income ratio shows inconsistency, and the free cash flow growth rate is negative. These indicators point to ongoing cash flow management issues and highlight the need for improved operational efficiency.32
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 125.06M | 132.65M | 113.77M | 82.91M | 65.16M | 65.87M | Gross Profit |
| 84.39M | 74.53M | 81.83M | 61.11M | 52.54M | 52.68M | EBIT |
| -41.82M | -97.74M | -85.79M | -50.88M | -26.53M | -29.13M | EBITDA |
| 33.28M | -56.58M | -98.37M | -36.13M | -8.62M | -17.64M | Net Income Common Stockholders |
| -27.85M | -115.46M | -218.26M | -109.42M | -51.19M | -33.27M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 44.23M | 23.59M | 60.39M | 32.17M | 44.23M | 6.28M | Total Assets |
| 280.11M | 370.56M | 433.16M | 378.49M | 280.11M | 243.12M | Total Debt |
| 215.22M | 251.64M | 197.87M | 333.27M | 215.22M | 170.79M | Net Debt |
| 170.99M | 235.19M | 137.48M | 301.10M | 170.99M | 164.51M | Total Liabilities |
| 272.37M | 327.10M | 288.47M | 411.33M | 272.37M | 225.48M | Stockholders Equity |
| 7.73M | 43.46M | 144.69M | -32.83M | 7.73M | 17.64M |
| Cash Flow | Free Cash Flow | ||||
| -20.45M | -43.43M | -83.99M | -42.62M | -22.66M | -19.89M | Operating Cash Flow |
| -7.15M | -35.49M | -72.63M | -37.05M | -17.17M | -16.90M | Investing Cash Flow |
| 82.50M | -20.32M | -10.24M | -49.20M | -5.49M | -3.15M | Financing Cash Flow |
| -66.06M | 12.08M | 111.53M | 74.31M | 60.68M | 23.59M |
FiscalNote Holdings Technical Analysis
Negative
0.79
Price Trends
1.22
Negative
1.13
Negative
1.24
Negative
Market Momentum
-0.11
Positive
30.97
Neutral
8.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTE, the sentiment is Negative. The current price of 0.79 is below the 20-day moving average (MA) of 0.94, below the 50-day MA of 1.22, and below the 200-day MA of 1.24, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 30.97 is Neutral, neither overbought nor oversold. The STOCH value of 8.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTE.
FiscalNote Holdings Risk Analysis
FiscalNote Holdings disclosed 60 risk factors in its most recent earnings report. FiscalNote Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
FiscalNote Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $140.99M | 19.98 | 32.69% | ― | 3.37% | ― | |
57 Neutral | $20.94B | 10.43 | -13.41% | 2.52% | 4.53% | -23.34% | |
55 Neutral | $114.55M | ― | 180.24% | ― | 70.56% | 9.71% | |
49 Neutral | $89.99M | ― | -60.25% | ― | -1.06% | 52.73% | |
47 Neutral | $113.13M | ― | -152.89% | ― | -54.16% | 31.61% | |
46 Neutral | $107.34M | ― | -27.24% | ― | 13.62% | 30.25% | |
42 Neutral | $112.86M | 18.08 | 13.47% | ― | -9.33% | ― |
* Technology Sector Average
Performance Comparison
NOTE
FiscalNote Holdings
0.72
-0.60
-45.45%
BKTI
BK Technologies
41.73
26.94
182.15%
COE
China Online Education Group
20.79
13.78
196.58%
ONDS
Ondas Holdings
0.90
-0.17
-15.89%
CTM
Castellum
1.00
0.72
257.14%
FRGE
Forge Global Holdings
0.51
-1.85
-78.39%
FiscalNote Holdings Earnings Call Summary
Earnings Call Date: Mar 13, 2025 | % Change Since: -17.71% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Positive
FiscalNote Holdings, Inc. showed strong progress in profitability and debt reduction, with significant improvements in adjusted EBITDA and cash flow from operations. The launch of Policy Note has been positively received, indicating potential for future growth. However, there are challenges ahead with flat ARR, slightly reduced net revenue retention, and potential market volatility affecting future growth. The overall sentiment is cautiously optimistic with notable achievements in operational efficiency.Highlights
Significant Improvement in Adjusted EBITDA
FiscalNote Holdings reported $9.8 million in adjusted EBITDA for 2024, a year-over-year improvement of more than $17 million and 1,400 basis points.
Debt Reduction Achievements
The company reduced senior debt by more than 60% in the past year, with a pending divestiture expected to further reduce the senior term loan by $29 million.
Launch and Positive Reception of Policy Note
The launch of Policy Note in January has shown strong engagement and adoption trends, with positive qualitative feedback from customers highlighting its intuitive experience and impact.
Improved Cash Flow from Operations
Cash flow from operations improved significantly by more than $30 million in 2024 compared to 2023.
Achievement of Positive Adjusted EBITDA for Full Year
2024 marked the first full year of positive adjusted EBITDA in FiscalNote's history, reaching $9.8 million.
Lowlights
Flat Annual Recurring Revenue
Annual recurring revenue (ARR) was $107 million, slightly down from $109 million in 2023 on a pro forma basis.
Net Revenue Retention Slightly Lower
Net revenue retention was 98% in Q4 2024, slightly down from 99% in the prior year.
Challenges in Revenue Growth
Q4 2024 total revenue was $29.5 million, down year-over-year due to divestitures, and the typical end-of-year ARR uptick did not materialize.
Anticipated Market Volatility
The company anticipates market volatility, particularly in the private sector, to impact corporate buying decisions and timelines in 2025.
Company Guidance
During the conference call, FiscalNote Holdings, Inc. provided guidance for 2025, emphasizing several key financial metrics and strategic goals. The company aims to achieve an adjusted EBITDA between $10 million and $12 million, which is more than double the 2024 adjusted EBITDA margins on a pro forma basis despite the anticipated divestiture of Oxford Analytica and Dragonfly. FiscalNote also plans to reduce senior debt by over 60% from the previous year and improve cash flow from operations, which saw a significant $30 million improvement in 2024. Total revenue for 2025 is expected to range between $94 million and $100 million, with a focus on growing annual recurring revenue (ARR) in the second half of the year. The company's strategy involves managing debt, enhancing operating margins, simplifying the product portfolio, and leveraging the newly launched Policy Note platform to drive customer engagement and retention, thereby setting a foundation for sustained GAAP revenue growth in 2026 and beyond.FiscalNote Holdings Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Announces CRO Departure and Strategic Shift
Neutral
Feb 21, 2025
On February 21, 2025, Richard Henderson, Chief Revenue Officer of FiscalNote Holdings, is set to depart the company. CEO Josh Resnik expressed gratitude for Henderson’s contributions, particularly in restructuring the commercial organization and implementing standardized playbooks. As FiscalNote shifts towards a product-led sales strategy, it aims to leverage its new AI-powered solution, PolicyNote, to assist organizations in navigating rapid policy changes, signaling a significant transition in its operational focus.
Business Operations and Strategy
FiscalNote Holdings to Present at Needham Growth Conference
Positive
Jan 15, 2025
FiscalNote Holdings announced that they will present at the Needham & Co. 27th Annual Growth Conference on January 15, 2025, in New York City. This event signifies an opportunity for the company to engage with investors and stakeholders, potentially impacting its market visibility and stakeholder engagement positively.
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Amends Incentive Plan and Awards CFO
Positive
Jan 3, 2025
FiscalNote Holdings, Inc. has amended its 2022 Long-Term Incentive Plan to increase the number of shares authorized for issuance and adjust the ‘evergreen’ provision. This amendment, approved by stockholders holding 52% of voting power, signifies an enhancement in the company’s equity strategy, potentially impacting stakeholders and aligning with market dynamics. Additionally, the company granted $1 million in restricted stock units to its CFO, Jon Slabaugh, which will vest over time, indicating a strategic move to retain key executive talent.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.