FiscalNote (NOTE) Plunges 4.76% to Record Low After Reverse Split *Highlights causality (reverse split), exact percentage, and record low; concise and dynamic.*

FiscalNote Holdings (NOTE) closed with a 0.90% gain on Friday, but the stock hit an intraday low as investors reacted to a 1-for-12 reverse stock split announced earlier in the week. The share price declined by 4.76% during the session, marking a new record low for the beleaguered AI-driven policy intelligence firm.

The reverse split, effective August 29, consolidates shares without altering ownership percentages. While management framed the move as a strategy to stabilize liquidity and investor confidence, the timing coincided with a 15.6% drop in the stock price through August 26. Analysts note that reverse splits often signal financial strain, though FiscalNote’s action appears aimed at meeting exchange requirements rather than addressing deeper operational challenges.

Earnings reported on August 7 showed a modest $0.08-per-share loss, slightly better than estimates, but the company’s net margin of -41.79% and high leverage—evidenced by a debt-to-equity ratio of 1.23—highlight ongoing struggles. Despite a $23.26 million revenue figure, which narrowly exceeded forecasts, the firm’s cash reserves and negative free cash flow remain concerning for long-term sustainability.

Analyst sentiment is split, with D. Boral Capital and LADENBURG THALMASH issuing “Buy” ratings of $3.75 and $2.50, respectively, while Wall Street Zen downgraded the stock to “Sell” on August 9. The disparity underscores uncertainty about FiscalNote’s ability to turn around its financials, with the consensus price target of $2.44 implying a potential 460% upside from its recent closing price.

Recent institutional activity shows mixed signals. Envestnet, Wells Fargo, and Mariner LLC increased holdings in Q3 2025, suggesting cautious optimism about long-term potential. However, insider selling, including a 2.04% stake reduction by Director Tim Hwang in early August, raises questions about management’s confidence in the stock’s trajectory.

FiscalNote announced new AI-powered tools, including a “Dynamic Dashboard” for enterprise clients, aiming to strengthen its market position. While these innovations could drive revenue, their impact remains unproven, and the timing—post-reverse split—has been interpreted by some as a strategic move to highlight growth amid financial turbulence.

Technical indicators reinforce the stock’s vulnerability, with a 6M decline of 65.46% and a beta of 0.58 suggesting limited downside protection. High short interest further pressures the stock, as institutional investors continue to bet against a near-term recovery.

The interplay of these factors—structural changes, financial strain, and polarized market views—leaves FiscalNote in a precarious position. While product developments and institutional support offer glimmers of hope, the company must demonstrate tangible progress in profitability and cash flow to reverse investor skepticism.