FiscalNote's PolicyNote: Pioneering Global Regulatory Tech Dominance with AI and Stablecoins

The regulatory technology sector is experiencing exponential growth as governments worldwide pass an average of 1.5 million laws annually, creating a critical need for real-time tracking and analysis tools. Into this landscape steps FiscalNote, whose PolicyNote platform is now emerging as a leader in regulatory intelligence. By combining AI-driven efficiency with a bold push into stablecoin payments, FiscalNote is dismantling geographic and financial barriers to global expansion—a strategy that could position it as the go-to solution for enterprises navigating complex regulatory environments.

The Surge in PolicyNote's User Adoption: A Product-Led Revolution

PolicyNote's rise has been nothing short of meteoric. The platform recently surpassed its legacy system in daily active users (DAUs), a milestone that underscores its intuitive design and time-to-value advantage. Users now create AI-powered alerts 94% faster than on the previous system, thanks to streamlined onboarding and features like bill forecasts and tariff trackers. This speed isn't just a technical win—it's a customer retention multiplier.

The platform's Q1 2025 enhancements further solidify its lead. New widgets for tracking U.S. presidential actions, EU defense policies, and tariff fluctuations provide users with granular insights. For instance, the Tariff Tracker allows companies to monitor customs adjustments in real time—a game-changer for multinational supply chains. Meanwhile, AI-powered “similar bill detection” reduces the cognitive load of legal analysis, enabling users to focus on strategy over data sifting.

The Cross-Border Payment Problem—and FiscalNote's Stablecoin Solution

Despite PolicyNote's dominance, 90% of FiscalNote's revenue still comes from U.S. clients. To unlock global growth, the company is tackling a persistent pain point: the high cost and complexity of cross-border payments. By exploring stablecoins—a hybrid of cryptocurrency and fiat reserves—FiscalNote aims to reduce transaction fees and delays for non-U.S. customers.

This move is strategic for two reasons:
1. Cost Efficiency: Stablecoins can cut payment processing costs by up to 40% compared to traditional banking rails.
2. Market Access: Over 60% of emerging markets lack robust financial infrastructure, making decentralized payment systems a gateway to untapped markets.

Financial Fortitude Amid Global Ambition

FiscalNote's Q1 2025 results reflect disciplined execution. Revenues hit $27.5 million, exceeding its $26M–$27M guidance, while adjusted EBITDA improved to $2.8 million. Subscription revenue, which accounts for 92% of total revenue, dipped 15% YoY due to divestitures—a calculated move to focus on core products. The company reaffirmed its full-year 2025 revenue forecast of $94M–$100M, signaling confidence in its pivot.

Risks and Mitigations

Critics will point to risks:
- U.S. Market Dependence: Expansion into Europe and Asia hinges on regulatory acceptance.
- Competitor Imitation: Rivals like Diligenta or Intralinks may replicate PolicyNote's features.
- Stablecoin Regulatory Uncertainty: Central banks globally are scrutinizing crypto assets.

FiscalNote's mitigation strategies are clear:
- Localization: The EU Defense Policy vertical and tariff trackers show tailored product development.
- Partnerships: Aligning with blockchain infrastructure firms (e.g., Circle or Paxos) could fast-track stablecoin adoption.
- Divestitures: Offloading non-core assets like TimeBase reduces distractions and frees capital for R&D.

Investment Thesis: A Regulatory Tech Play for the Global Stage

FiscalNote's dual focus on product innovation (AI-driven efficiency) and financial innovation (stablecoins) creates a moat around its business. With regulatory complexity set to rise—driven by AI governance, climate policies, and trade disputes—the demand for real-time compliance tools will only grow.

For investors, the stock presents an asymmetric opportunity. At current valuations, the market is pricing in U.S. growth but underappreciating the $30B global regulatory tech market's untapped potential. If stablecoin trials succeed in markets like Southeast Asia or the EU, FiscalNote could become the de facto standard for cross-border regulatory intelligence—a position worth a 20–30% upside in the next 12–18 months.

Final Take: Buy the Disruption, Not Just the Product

FiscalNote isn't just selling software; it's redefining how companies interact with global regulations. The PolicyNote platform's DAU surge and stablecoin gambit are two sides of the same coin: a bet on technology to democratize regulatory power. For investors seeking exposure to a sector with compounding tailwinds, FiscalNote is a compelling choice—provided they're willing to look past near-term U.S. dependency and see the global vision ahead.