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FiscalNote Holdings (NOTE)
NYSE:NOTE
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FiscalNote Holdings
(NYSE:NOTE)
Rating:49Neutral
Price Target:
$0.50
▼(-21.88%Downside)
FiscalNote Holdings (NOTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.09M
Dividend YieldN/A
Average Volume (3M)1.34M
Price to Earnings (P/E)14.8
Beta (1Y)1.97
Revenue Growth-13.18%
EPS Growth4.83%
CountryUS
Employees555
SectorTechnology
Sector Strength84
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding149,925,780
10 Day Avg. Volume1,167,712
30 Day Avg. Volume1,340,210
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio-7.28
Enterprise Value/Market Cap2.52
Enterprise Value/Revenue0.49
Enterprise Value/Gross Profit2.94
Enterprise Value/Ebitda2.03
Forecast
1Y Price Target
$2.63Price Target Upside310.94% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
FiscalNote Holdings Business Overview & Revenue Model
Company DescriptionFiscalNote 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 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 Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: -1.54%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong financial performance in terms of revenue and adjusted EBITDA, significant debt reduction, and promising developments with the PolicyNote platform. However, challenges such as a decline in ARR and net revenue retention, as well as a sequential revenue decline due to divestitures, were also noted. Despite these challenges, the company's reaffirmed guidance and positive pipeline developments suggest optimism for future growth.Q1-2025 Updates
Positive Updates
Exceeding Financial Expectations
FiscalNote reported Q1 2025 revenue of $27.5 million, exceeding the forecast of $26 million to $27 million. Adjusted EBITDA was $2.8 million, surpassing the guidance of approximately $2 million.
Improved Adjusted EBITDA Margin
Adjusted EBITDA margin in Q1 2025 was 10%, compared to 4% in the same period one year earlier, reflecting improved operating leverage.
Significant Debt Reduction
FiscalNote reduced its senior term loan by $96 million since December 31, 2023, decreasing cash interest expense from $5 million to $2 million per quarter.
Strong Pipeline Growth
Inbound pipeline rose 20% compared to the same period last year, with notable traction in Europe where pipeline creation doubled compared to 2024.
PolicyNote Platform Success
The new PolicyNote platform is contributing to significant improvements in customer engagement, with 75% of migrated at-risk accounts now healthy and high engagement levels overall.
Increased Multi-Year Agreements
New corporate customers committed to multi-year agreements at more than double the rate of a year ago, indicating trust in the platform and its future developments.
Negative Updates
Decline in Annual Recurring Revenue
ARR was $88 million in Q1 2025, down from $94 million in 2024 on a pro forma basis, reflecting challenges in resuming growth.
Net Revenue Retention Decline
Net revenue retention was 93% in Q1 2025, down from 96% in the prior year, influenced by underperformance at the end of 2024.
Sequential Decline in Revenue Expected
Revenue guidance for Q2 2025 is $22 million to $24 million, slightly below Q1 levels, primarily due to recent divestitures.
Company Guidance
During the FiscalNote Holdings Incorporated first quarter 2025 financial results conference call, the company provided guidance for both the full year and second quarter of 2025. For the full year, they reaffirmed their revenue forecast in the range of $94 million to $100 million and adjusted EBITDA between $10 million and $12 million. For the second quarter of 2025, they projected revenues between $22 million and $24 million, and an adjusted EBITDA of approximately $2 million. The first quarter saw a revenue of $27.5 million, exceeding expectations, with an adjusted EBITDA of $2.8 million reflecting a margin of 10%. The company emphasized their strategic focus on product-led growth, efficient pipeline management, and maintaining a disciplined approach towards achieving positive free cash flow. They highlighted key performance indicators such as annual recurring revenue (ARR) at $88 million and net revenue retention (NRR) at 93%, and noted the impact of recent divestitures on their financials.FiscalNote Holdings Financial Statement Overview
Summary
FiscalNote Holdings faces ongoing financial challenges with consistent losses and negative free cash flow. While there are positive signs in recent equity improvements, high debt levels and operational inefficiencies pose significant risks. The company needs strategic measures to enhance profitability and cash flow stability.Income Statement
FiscalNote Holdings shows inconsistent revenue growth with declines in recent years. Gross profit margin is relatively healthy, but negative EBIT and EBITDA margins indicate operational inefficiencies. The net profit margin has improved recently, but the company still struggles with profitability challenges.40
Negative
Balance Sheet
The company has high leverage, reflected in a significant debt-to-equity ratio, but recent improvements in equity position are notable. The equity ratio remains low, indicating reliance on debt financing. Return on equity is inconsistent, showing weak shareholder returns.45
Neutral
Cash Flow
Free cash flow remains negative, showing cash management issues. Operating cash flow is also negative, indicating challenges in generating cash from core operations. The cash flow to net income ratios reflect inefficiencies in translating profits into cash.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 120.27M | 132.65M | 113.77M | 82.91M | 65.16M | Gross Profit |
| 76.10M | 74.53M | 81.83M | 61.11M | 52.54M | EBIT |
| -31.94M | -97.74M | -85.79M | -50.88M | -26.53M | EBITDA |
| 53.51M | -56.58M | -98.37M | -36.13M | -8.62M | Net Income Common Stockholders |
| 9.52M | -115.46M | -218.26M | -109.42M | -51.19M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 34.61M | 23.59M | 60.39M | 32.17M | 44.23M | Total Assets |
| 326.20M | 370.56M | 433.16M | 378.49M | 280.11M | Total Debt |
| 172.95M | 251.64M | 197.87M | 333.27M | 215.22M | Net Debt |
| 144.14M | 235.19M | 137.48M | 301.10M | 170.99M | Total Liabilities |
| 228.37M | 327.10M | 288.47M | 411.33M | 272.37M | Stockholders Equity |
| 97.83M | 43.46M | 144.69M | -32.83M | 7.73M |
| Cash Flow | Free Cash Flow | |||
| -14.18M | -43.43M | -83.99M | -42.62M | -22.66M | Operating Cash Flow |
| -5.30M | -35.49M | -72.63M | -37.05M | -17.17M | Investing Cash Flow |
| 89.17M | -20.32M | -10.24M | -49.20M | -5.49M | Financing Cash Flow |
| -71.43M | 12.08M | 111.53M | 74.31M | 60.68M |
FiscalNote Holdings Technical Analysis
Negative
0.64
Price Trends
0.66
Negative
0.97
Negative
1.03
Negative
Market Momentum
-0.01
Negative
47.59
Neutral
50.21
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 0.64 is below the 20-day moving average (MA) of 0.65, below the 50-day MA of 0.66, and below the 200-day MA of 1.03, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 47.59 is Neutral, neither overbought nor oversold. The STOCH value of 50.21 is Neutral, 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 3 New Risks
1.
Purchase of Equity Securities Q3, 2024
2.
Securities Purchase Agreement Q3, 2024
3.
Registration Rights Agreement Q3, 2024
FiscalNote Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $163.59M | 17.32 | 36.41% | ― | 5.18% | ― | |
62 Neutral | $11.80B | 10.31 | -7.45% | 2.91% | 7.43% | -7.78% | |
57 Neutral | $233.63M | ― | -157.00% | ― | -21.17% | 23.22% | |
53 Neutral | $101.52M | ― | -36.17% | ― | -3.32% | 66.41% | |
53 Neutral | $183.07M | ― | -27.44% | ― | 16.03% | 30.99% | |
49 Neutral | $98.09M | 14.84 | -44.27% | ― | -13.18% | 4.83% | |
48 Neutral | $143.59M | ― | 180.24% | ― | 85.68% | 50.06% |
* Technology Sector Average
Performance Comparison
NOTE
FiscalNote Holdings
0.64
-0.48
-42.86%
BKTI
BK Technologies
43.93
30.73
232.80%
COE
China Online Education Group
27.89
20.62
283.63%
ONDS
Ondas Holdings
1.68
0.99
143.48%
CTM
Castellum
1.27
1.08
568.42%
FRGE
Forge Global Holdings
15.54
-10.11
-39.42%
FiscalNote Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
FiscalNote Holds Annual Stockholder Meeting, Elects Directors
Neutral
May 30, 2025
FiscalNote Holdings, Inc. held its annual meeting of stockholders on May 28, 2025, where stockholders voted on two proposals. The stockholders elected three Class III directors for a three-year term and ratified the appointment of RSM US LLP as the independent registered public accounting firm for the 2025 fiscal year.
The most recent analyst rating on (NOTE) stock is a Buy with a $3.00 price target. To see the full list of analyst forecasts on FiscalNote Holdings stock, see the NOTE Stock Forecast page.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
FiscalNote Holdings Sells Australian Subsidiary to Thomson Reuters
Positive
May 5, 2025
On May 2, 2025, FiscalNote Holdings announced the sale of its Australian subsidiary, TimeBase Pty. Ltd., to Thomson Reuters for $6.5 million. The proceeds will be used to reduce debt and improve the company’s financial position. Despite this divestiture, FiscalNote reaffirms its financial forecast for 2025, projecting revenues of $94-$100 million and adjusted EBITDA of $10-$12 million. The sale is part of FiscalNote’s strategy to streamline operations and focus on its core business, enhancing its path to positive free cash flow and long-term growth.
Executive/Board ChangesBusiness Operations and Strategy
FiscalNote Holdings Board Member Resigns Amid Strategic Shift
Neutral
May 2, 2025
On April 30, 2025, General Stanley A. McChrystal announced his resignation from the Board of Directors of FiscalNote Holdings, effective May 29, 2025, to focus on other professional commitments. His departure, which is not due to any disagreement with the company, will result in the board size being reduced to eight members, aligning with the company’s recent strategic divestitures.
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.