FiscalNote Holdings (NOTE) AI Stock Analysis

• Market Cap: $36.92M
• Dividend Yield: N/A
• Average Volume (3M): 216.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.54
• Revenue Growth: -17.90%
• EPS Growth: -67.81%
• Country: US
• Employees: 555
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -1.73
• Shares Outstanding: 15,018,986
• 10 Day Avg. Volume: 188,429
• 30 Day Avg. Volume: 216,229
• PEG Ratio: -0.14
• Price to Book (P/B): 1.50
• Price to Sales (P/S): 1.22
• P/FCF Ratio: -10.32
• Enterprise Value/Market Cap: 5.14
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.50
• Enterprise Value/Ebitda: -9.19
• 1Y Price Target: $6.00
• Price Target Upside: 173.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.43
• Revenue Forecast (FY): $95.71M

• Rating: 44 Neutral
• Price Target: $2.50 ▲(14.16% Upside)

FiscalNote Holdings faces significant financial and technical challenges, with declining revenues and bearish market momentum. While the earnings call provided some positive insights, such as improved corporate sales and product innovation, these are overshadowed by ongoing profitability issues and a negative valuation outlook.

Positive Factors

Product Innovation

The launch of significant enhancements, including AI-powered features, strengthens FiscalNote's competitive position and product offering, potentially driving customer engagement and retention over the long term.

Corporate Sales Momentum

Improved win rates and increased reliance on multiyear contracts enhance revenue stability and predictability, supporting long-term growth and customer loyalty.

Cost Management

Effective cost management and operating efficiency improvements can lead to better margins and financial health, providing a more sustainable business model.

Negative Factors

Revenue Decline

The decline in revenue due to divestitures indicates potential challenges in maintaining growth, which could impact the company's market position and financial performance.

Federal Sector Volatility

Volatility in the federal sector poses risks to revenue stability, affecting FiscalNote's ability to predict and manage cash flows effectively in the long term.

Decline in ARR

A decline in annual recurring revenue suggests challenges in customer retention and acquisition, which could hinder long-term revenue growth and financial stability.

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 generates revenue primarily through subscription-based services, where clients pay for access to its legislative tracking and analytics platforms. These subscriptions can vary in tiered pricing based on the level of service and features required. Additionally, FiscalNote may derive income from consulting services, providing tailored insights and strategic advice to clients navigating complex regulatory landscapes. Key revenue streams include enterprise subscriptions, individual licenses, and specialized tools for specific industries. Strategic partnerships with government agencies and other organizations can also enhance its service offerings, helping to drive customer acquisition and retention.

FiscalNote Holdings Financial Statement Overview

Summary

FiscalNote Holdings is facing financial challenges with declining revenues and negative profitability metrics. Despite improvements in leverage and free cash flow growth, the company struggles with negative net income and operating cash flow. The strong gross profit margin and reduced debt levels are positive, but overall financial stability and profitability need enhancement.

Income Statement

FiscalNote Holdings has experienced a decline in revenue over the TTM period, with a negative revenue growth rate of -6.39%. The company also shows negative net profit and EBIT margins, indicating ongoing profitability challenges. However, the gross profit margin remains strong at 84.13%, suggesting efficient cost management at the gross level.

Balance Sheet

The company's debt-to-equity ratio has improved to 0.39 in the TTM period, indicating reduced leverage compared to previous years. However, the return on equity remains negative at -47.88%, reflecting continued challenges in generating returns for shareholders. The equity ratio of 27.57% suggests a moderate level of equity financing.

Cash Flow

FiscalNote Holdings shows a significant improvement in free cash flow growth at 49.63% in the TTM period. The free cash flow to net income ratio is positive at 1.61, indicating that the company is generating cash flow relative to its net income. However, the operating cash flow remains negative, highlighting ongoing cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	102.67M	120.27M	132.65M	113.77M	82.91M	65.16M
Gross Profit	75.89M	76.10M	74.53M	65.87M	46.48M	38.23M
EBITDA	-20.64M	53.51M	-56.58M	-104.99M	-36.13M	-9.29M
Net Income	-55.76M	9.52M	-115.46M	-218.26M	-109.42M	-51.27M
Balance Sheet
Total Assets	273.87M	326.20M	370.56M	433.16M	378.49M	280.11M
Cash, Cash Equivalents and Short-Term Investments	31.19M	34.61M	23.59M	60.39M	32.17M	44.23M
Total Debt	154.94M	172.95M	251.64M	197.87M	333.27M	215.22M
Total Liabilities	198.37M	228.37M	327.10M	288.47M	411.33M	272.37M
Stockholders Equity	75.50M	97.83M	43.46M	144.69M	-32.83M	7.73M
Cash Flow
Free Cash Flow	-20.08M	-14.18M	-43.43M	-83.99M	-42.62M	-22.66M
Operating Cash Flow	-12.51M	-5.30M	-35.49M	-72.63M	-37.05M	-17.17M
Investing Cash Flow	46.01M	89.17M	-20.32M	-10.24M	-49.20M	-5.49M
Financing Cash Flow	-32.22M	-71.43M	12.08M	111.53M	74.31M	60.68M

FiscalNote Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• 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 2.19 is below the 20-day moving average (MA) of 2.63, below the 50-day MA of 3.82, and below the 200-day MA of 7.30, indicating a bearish trend. The MACD of -0.51 indicates Negative momentum. The RSI at 28.11 is Positive, neither overbought nor oversold. The STOCH value of 57.00 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
III	69 Neutral	$254.74M	27.45	10.22%	2.97%	-5.74%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CSPI	52 Neutral	$113.01M	―	-3.33%	1.05%	-0.37%	-161.02%
TLS	52 Neutral	$418.19M	―	-23.73%	―	17.44%	41.97%
PSFE	47 Neutral	$452.53M	―	-15.59%	―	-0.95%	-456.64%
NOTE	44 Neutral	$36.92M	―	-64.09%	―	-17.90%	-67.81%
SAIH	39 Underperform	$11.74M	―	-50.16%	―	―	―

FiscalNote Holdings Corporate Events

FiscalNote Holdings Inc. Reports Mixed Earnings Call

During the recent earnings call, FiscalNote Holdings Inc. conveyed a mixed sentiment. While the company showcased positive momentum in corporate sales and product innovation, challenges such as revenue declines due to divestitures and federal sector volatility were also highlighted. Cost management efforts yielded positive results, yet increased general and administrative expenses and a decline in annual recurring revenue (ARR) were areas of concern.

FiscalNote’s Q3 2025 Results: Revenue Meets, EBITDA Exceeds

FiscalNote Holdings Inc., a leading provider of AI-driven policy and regulatory intelligence solutions, operates within the technology sector, offering insights and analysis to help organizations manage political and business risks. In its third-quarter 2025 financial results, FiscalNote reported total revenues of $22.4 million, aligning with its guidance, while adjusted EBITDA of $2.2 million surpassed expectations. The company highlighted sequential growth in annual recurring revenue (ARR) and emphasized the stabilization of its core business, driven by the success of its PolicyNote platform. Key strategic moves included the completion of balance sheet refinancing to enhance long-term flexibility and the launch of new AI-powered capabilities within PolicyNote, such as legislative drafting and social listening. Despite a 24% decline in total revenues compared to the previous year, primarily due to divestitures, FiscalNote demonstrated operational improvements and cost efficiency, with a notable reduction in operating expenses. Looking ahead, FiscalNote remains focused on its product-led growth strategy, anticipating continued demand and improvements in sales metrics, while navigating challenges in the federal public sector and market volatility.

FiscalNote Updates Executive Employment Agreements

On October 31, 2025, FiscalNote Holdings, Inc. entered into amended and restated employment agreements with its President & CEO, Josh Resnik, and CFO & SVP, Jon Slabaugh. These agreements modify the calculation of benefits upon termination and redefine ‘Good Reason.’ Additionally, on October 30, 2025, the company approved one-time cash retention awards for both executives, contingent on their continued employment for 48 months. The company also replaced its Change in Control Severance Plan, excluding its principal executives from participation.

The most recent analyst rating on (NOTE) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on FiscalNote Holdings stock, see the NOTE Stock Forecast page.

FiscalNote Holdings Issues Convertible Debentures to YA II PN

On September 11, 2025, FiscalNote Holdings, Inc. issued a second tranche of convertible debentures worth $12.3 million to YA II PN, Ltd., following an agreement made on August 5, 2025. The proceeds from this issuance were partly used to retire existing subordinated convertible notes, enhancing the company’s financial structure.

The most recent analyst rating on (NOTE) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on FiscalNote Holdings stock, see the NOTE Stock Forecast page.

FiscalNote Holdings Announces Reverse Stock Split

On August 22, 2025, FiscalNote Holdings, Inc. announced a reverse stock split of its Class A and Class B common stock at a ratio of 1-for-12, which will become effective on August 29, 2025. This move, aimed at consolidating the company’s shares, will not affect the par value per share or the rights and privileges of the stockholders. The company’s Class A Common Stock will begin trading on a split-adjusted basis on the NYSE on September 2, 2025, under the same trading symbol ‘NOTE’, with a new CUSIP number. The reverse stock split is expected to maintain each stockholder’s percentage ownership and voting power, with minor adjustments due to rounding of fractional shares.

The most recent analyst rating on (NOTE) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on FiscalNote Holdings stock, see the NOTE Stock Forecast page.

FiscalNote’s Mixed Earnings Call: Growth Amid Challenges

FiscalNote Holdings Inc.’s recent earnings call painted a mixed picture, with notable achievements in EBITDA margin improvement and strategic refinancing, juxtaposed against challenges in declining annual recurring revenue (ARR) and retention issues with legacy products. Despite these hurdles, the company expressed optimism about future growth, buoyed by strong demand and improvements in new sales pipelines.