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FiscalNote Holdings (NOTE)
NYSE:NOTE
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FiscalNote Holdings
(NYSE:NOTE)
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Rating:44Neutral
Price Target:
$1.00
▼(-13.04% Downside)
The score is held down primarily by weak financial fundamentals (declining revenue, ongoing losses, and negative operating cash flow) and a clearly bearish technical trend with the price below all key moving averages. Partially offsetting this are improving free cash flow metrics and an earnings call showing better-than-guided EBITDA and steady outlook, though ARR decline and federal volatility remain meaningful risks.
Positive Factors
Recurring Subscription Model
A subscription- and contract-driven SaaS/data revenue base yields predictable recurring cash flows and higher customer visibility. Over months this supports retention, multi-year ARR growth, smoother revenue planning, and scalable unit economics as seats and jurisdiction coverage expand.
High Gross Margin
An 84% gross margin reflects low incremental product delivery costs typical of software and data businesses, enabling durable operating leverage. High margins provide room to invest in product, AI features, and sales motion while supporting long-term margin sustainability if revenue stabilizes or grows.
Improving Free Cash Flow and Leverage
Strong FCF growth and a positive FCF-to-net-income ratio indicate improving cash conversion, which enhances the firm's ability to fund operations and de-risk financing needs. Paired with reduced leverage, this trend improves financial optionality over the coming quarters.
Negative Factors
Revenue Contraction
Sharp revenue decline reduces scale, weakens pricing power and cross-sell opportunities, and constrains reinvestment. Sustained top-line contraction risks eroding market position in policy intelligence and limits the company's ability to recover fixed costs over the next several quarters.
Negative Profitability and Operating Cash Flow
Continued net losses and negative operating cash flow undermine internal funding for growth and increase reliance on external financing. Over a multi-month horizon this reduces strategic flexibility, pressures margins, and can limit investment in product and sales needed to stabilize ARR.
Poor Return on Equity
A deeply negative ROE signals the business is not generating returns on shareholder capital, reflecting persistent operating losses or capital inefficiency. If sustained, negative ROE erodes investor confidence and indicates structural issues in scaling profitable customer acquisition and retention.
FiscalNote Holdings (NOTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.07M
Dividend YieldN/A
Average Volume (3M)223.60K
Price to Earnings (P/E)―
Beta (1Y)2.51
Revenue Growth-17.90%
EPS Growth-67.81%
CountryUS
Employees555
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-1.73
Shares Outstanding15,018,986
10 Day Avg. Volume253,125
30 Day Avg. Volume223,602
Financial Highlights & Ratios
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 Cap7.86
Enterprise Value/Revenue1.38
Enterprise Value/Gross Profit1.87
Enterprise Value/Ebitda-6.88
Forecast
1Y Price Target
$11.00Price Target Upside856.52% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 18, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive momentum in corporate sales and product innovation, but was offset by challenges such as revenue declines due to divestitures and federal sector volatility. Cost management efforts showed positive results, yet increased G&A expenses and a decline in ARR highlight areas for improvement.Q3-2025 Updates
Positive Updates
Adjusted EBITDA Exceeds Guidance
Adjusted EBITDA for Q3 2025 was $2.2 million, exceeding guidance and marking the fifth consecutive quarter of adjusted EBITDA margins at or above 10%.
Corporate Sales Momentum
Win rates among enterprise clients improved by 400 basis points compared to Q2, with corporate multiyear contracts now accounting for 50% of new logo ARR, up from 20% in early 2024.
Product Innovation and Enhancements
35 major enhancements to the PolicyNote platform were launched in 2025, including AI-powered features like legislative drafting and Bill Comparison.
Cost Management and Operating Efficiency
Operating expenses decreased by approximately 8% on a pro forma basis due to continued cost discipline and operating efficiency.
Negative Updates
Revenue Impact from Divestitures
Q3 2025 revenue was $7 million lower than the prior year, primarily due to divestitures of several business units in 2024 and 2025.
Federal Sector Volatility
Ongoing volatility in the federal sector, including disruptions due to the extended government shutdown, negatively impacted revenue.
Decline in Annual Recurring Revenue (ARR)
ARR was $84.8 million versus $92.2 million in 2024 on a pro forma basis, a decline of $7.4 million.
Increased G&A Expenses
G&A expenses increased by $3.3 million or 31%, due to noncash charges and cash costs related to refinancing activities and other nonrecurring costs.
Company Guidance
In the third quarter of 2025, FiscalNote Holdings, Inc. reported revenue totaling $22.4 million, aligning with guidance, and an adjusted EBITDA of $2.2 million, surpassing expectations with a margin of 10%. The company experienced a 400 basis points improvement in win rates among enterprise clients compared to the second quarter, contributing to a 500 basis points increase in win rates across all corporate segments year-to-date. Notably, corporate multiyear contracts for policy data now comprise approximately 50% of new logo annual recurring revenue (ARR), up from 20% in early 2024. This shift is anticipated to bolster revenue visibility and enhance gross retention by 2026. FiscalNote's annual recurring revenue stabilized with a modest increase on a pro forma basis, signaling an initial stabilization of the core business. The company's outlook for 2025 remains within previous ranges, with full-year revenue projected between $95 million and $96 million and adjusted EBITDA expected to be around $10 million.FiscalNote Holdings Financial Statement Overview
Summary
Revenue declined over the TTM period (-6.39%) and profitability remains weak with negative net profit and EBIT margins. Positives include a strong gross margin (84.13%), improved leverage (debt-to-equity 0.39), and better free cash flow growth (49.63%), but operating cash flow is still negative.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.45
Neutral
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.40
Negative
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.50
Neutral
| 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
Negative
1.15
Price Trends
1.59
Negative
2.73
Negative
4.84
Negative
Market Momentum
-0.16
Negative
36.06
Neutral
46.26
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 1.15 is below the 20-day moving average (MA) of 1.37, below the 50-day MA of 1.59, and below the 200-day MA of 4.84, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 36.06 is Neutral, neither overbought nor oversold. The STOCH value of 46.26 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 0 New Risks
FiscalNote Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $226.49M | 24.41 | 10.22% | 3.03% | -5.74% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $331.89M | -11.08 | -23.73% | ― | 17.44% | 41.97% | |
47 Neutral | $401.09M | -3.24 | -15.59% | ― | -0.95% | -456.64% | |
46 Neutral | $99.44M | -687.67 | -0.27% | 0.95% | 6.36% | 73.88% | |
44 Neutral | $18.07M | -0.27 | -64.09% | ― | -17.90% | -67.81% | |
42 Neutral | $13.19M | -1.81 | -50.16% | ― | ― | ― |
* Technology Sector Average
NOTE
FiscalNote Holdings
1.15
-18.89
-94.26%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.