FiscalNote Holdings (NOTE) AI Stock Analysis

• Market Cap: $98.68M
• Dividend Yield: N/A
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 14.6
• Beta (1Y): 2.13
• Revenue Growth: -9.33%
• EPS Growth: N/A
• Country: US
• Employees: 555
• Sector: Technology
• Sector Strength: 64
• Industry: Information Technology Services
• EPS (TTM): 0.04
• Shares Outstanding: 146,352,430
• 10 Day Avg. Volume: 1,408,105
• 30 Day Avg. Volume: 1,470,489
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.89
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $2.94
• Price Target Upside: 381.97% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

FiscalNote Holdings faces significant financial challenges with consistent losses and operational inefficiencies, as reflected in its low financial performance score. Technical indicators point to bearish momentum, further impacting the stock's outlook. While the earnings call presents a cautiously optimistic view with improvements in profitability and debt management, the overall stock score remains low due to persistent financial and market challenges.

FiscalNote Holdings Business Overview & Revenue Model

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.

How the Company Makes Money

FiscalNote 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.

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.

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.

Breakdown
Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
132.65M	113.77M	82.91M	65.16M	65.87M
	Gross Profit
74.53M	81.83M	61.11M	52.54M	52.68M
	EBIT
-97.74M	-85.79M	-50.88M	-26.53M	-29.13M
	EBITDA
-56.58M	-98.37M	-36.13M	-8.62M	-17.64M
	Net Income Common Stockholders
-115.46M	-218.26M	-109.42M	-51.19M	-33.27M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
23.59M	60.39M	32.17M	44.23M	6.28M
	Total Assets
370.56M	433.16M	378.49M	280.11M	243.12M
	Total Debt
251.64M	197.87M	333.27M	215.22M	170.79M
	Net Debt
235.19M	137.48M	301.10M	170.99M	164.51M
	Total Liabilities
327.10M	288.47M	411.33M	272.37M	225.48M
	Stockholders Equity
43.46M	144.69M	-32.83M	7.73M	17.64M
Cash Flow		Free Cash Flow
-43.43M	-83.99M	-42.62M	-22.66M	-19.89M
	Operating Cash Flow
-35.49M	-72.63M	-37.05M	-17.17M	-16.90M
	Investing Cash Flow
-20.32M	-10.24M	-49.20M	-5.49M	-3.15M
	Financing Cash Flow
12.08M	111.53M	74.31M	60.68M	23.59M

FiscalNote Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.61 is below the 20-day moving average (MA) of 0.66, below the 50-day MA of 0.91, and below the 200-day MA of 1.16, indicating a bearish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NOTE.

FiscalNote Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BKTI	73 Outperform	$157.50M	19.84	32.69%	―	3.37%	―
Sector *	59 Neutral	$10.65B	10.45	-6.56%	3.01%	7.31%	-12.18%
COE	55 Neutral	$106.99M	―	180.24%	―	70.56%	9.71%
FRGE	52 Neutral	$116.55M	―	-27.24%	―	13.62%	30.26%
NOTE	44 Neutral	$98.68M	14.57	13.47%	―	-9.33%	―
CTM	42 Neutral	$83.19M	―	-60.25%	―	-1.06%	52.73%
ONDS	41 Neutral	$100.25M	―	-152.89%	―	-54.16%	31.61%

FiscalNote Holdings Corporate Events

FiscalNote Holdings Announces CRO Departure and Strategic Shift

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.