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FiscalNote Holdings (NOTE)
NYSE:NOTE
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FiscalNote Holdings
(NYSE:NOTE)
Rating:56Neutral
Price Target:
$1.00
▲(28.21%Upside)
FiscalNote Holdings (NOTE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$117.81M
Dividend YieldN/A
Average Volume (3M)3.17M
Price to Earnings (P/E)14.8
Beta (1Y)2.13
Revenue Growth-13.18%
EPS Growth4.83%
CountryUS
Employees555
SectorTechnology
Sector Strength90
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.03
Shares Outstanding149,925,780
10 Day Avg. Volume2,812,509
30 Day Avg. Volume3,170,950
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.96
Price to Sales (P/S)0.00
P/FCF Ratio-7.12
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.17
Enterprise Value/Gross Profit1.00
Enterprise Value/Ebitda1.84
Forecast
1Y Price Target
$3.00Price Target Upside284.62% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
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 subscription-based services, offering clients access to its comprehensive database of legal, legislative, and regulatory information. The company charges recurring fees for its platform, which provides users with real-time updates, analytics, and tools to track and manage compliance risks. Additionally, FiscalNote offers customized research and consulting services, which contribute to its revenue streams. Key partnerships with government agencies, multinational corporations, and legal firms help to expand its client base and enhance its market presence, further boosting its earnings potential.
FiscalNote Holdings Earnings Call Summary
Earnings Call Date:May 12, 2025
(Q1-2025)
| % Change Since: 20.00%|
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 exhibits declining revenues and consistent net losses, with negative margins and cash flow issues posing significant risks. Despite a strong gross profit margin and improved debt-to-equity ratio, the overall financial performance is challenged, requiring strategic improvements.Income Statement
The income statement shows a declining revenue trend from $132.65 million in 2023 to $115.67 million in TTM (Trailing-Twelve-Months) 2025, indicating a negative growth trajectory. The gross profit margin for TTM 2025 is approximately 71.6%, which is robust, but the net profit margin is negative due to consistent losses. EBIT and EBITDA margins are negative, reflecting operational challenges.42
Neutral
Balance Sheet
The balance sheet indicates a debt-to-equity ratio of 0.25 in TTM 2025, which shows a relatively low leverage compared to previous years. The equity ratio is 32.9%, indicating moderate financial stability. However, the company has experienced fluctuations in stockholders' equity and total assets over the years.55
Neutral
Cash Flow
The cash flow statement highlights negative free cash flow and operating cash flow in TTM 2025, with free cash flow deteriorating from previous periods. The operating cash flow to net income ratio is negative, suggesting issues with converting income into cash. Overall, the cash flow situation remains challenging.38
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 | 92.39M | 65.87M | 61.11M | 52.54M |
| EBITDA | 53.51M | -56.58M | -98.37M | -36.13M | -9.29M |
| Net Income | 9.52M | -115.46M | -218.26M | -109.42M | -83.26M |
Balance Sheet | |||||
| Total Assets | 326.20M | 370.56M | 433.16M | 378.49M | 280.11M |
| Cash, Cash Equivalents and Short-Term Investments | 34.61M | 23.59M | 60.39M | 32.17M | 44.23M |
| Total Debt | 172.95M | 251.64M | 197.87M | 333.27M | 215.22M |
| 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
Positive
0.78
Price Trends
0.64
Positive
0.71
Positive
0.93
Negative
Market Momentum
0.04
Negative
59.73
Neutral
66.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NOTE, the sentiment is Positive. The current price of 0.78 is above the 20-day moving average (MA) of 0.69, above the 50-day MA of 0.64, and below the 200-day MA of 0.93, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.73 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $34.70B | 5.15 | -11.38% | 1.67% | 5.54% | -17.15% | |
58 Neutral | $219.33M | 29.60 | 8.09% | 3.96% | -12.26% | ― | |
56 Neutral | $117.81M | 14.84 | -44.27% | ― | -13.18% | 4.83% | |
56 Neutral | $114.12M | 40,175.00 | -3.16% | 1.09% | -11.53% | -128.96% | |
56 Neutral | $803.37M | 39.11 | -0.04% | ― | 3.50% | 95.90% | |
50 Neutral | $207.23M | ― | -38.32% | ― | -21.83% | -67.07% | |
48 Neutral | $128.21M | ― | -36.39% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
NOTE
FiscalNote Holdings
0.78
-0.94
-54.65%
III
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4.53
1.17
34.82%
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CSP
11.04
-3.98
-26.50%
PSFE
Paysafe
13.75
-7.79
-36.17%
TLS
Telos
2.84
-1.30
-31.40%
SAIH
SAIHEAT Limited
10.74
-2.53
-19.07%
FiscalNote Holdings Corporate Events
Product-Related AnnouncementsBusiness Operations and Strategy
FiscalNote Holdings Showcases AI Solutions at IDEAS Conference
Positive
Jun 11, 2025
On June 11, 2025, FiscalNote Holdings participated in the Three Part Advisors 2025 East Coast IDEAS Conference in New York City, where they presented their updated investor presentation and hosted investor meetings. This event is part of their strategy to enhance investor relations and market positioning by showcasing their AI-powered solutions, which aim to transform regulatory uncertainty into actionable insights, potentially impacting their growth and stakeholder engagement.
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.
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
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.