What were the key takeaways from FiscalNote Holdings’s earnings call?

What is FiscalNote Holdings's gross profit margin?

What is the market's earnings forecast for FiscalNote Holdings next quarter?

Did FiscalNote Holdings beat or miss consensus estimates last quarter?

What does FiscalNote Holdings do and what are its main business segments?

What is the revenue and EPS growth rate for FiscalNote Holdings year over year?

What guidance did FiscalNote Holdings's management provide for the next earnings period?

What factors drove the changes in FiscalNote Holdings's revenue and profit?

- **Stabilizing Growth**: Q3 ARR stabilized at $84.8 million (pro forma), with corporate win rates up 500bps and multiyear contracts now 50% of new ARR.
- **Product Success**: PolicyNote migration complete, with 35+ enhancements driving 98% user engagement and 98% NRR.
- **Cost Efficiency**: Operating expenses down 11% YoY, automation initiatives reducing costs and accelerating innovation.
- **Federal Risk**: Shutdown reduced Q3 revenue by $2-3 million, but corporate pipeline strength supports guidance.

**【CEO Summary Section】**
- Q3 2025 revenue of $22.4 million, with adjusted EBITDA of $2.2 million (10% margin), exceeding guidance. ARR stabilized at $84.8 million (pro forma), up $100,000 sequentially, signaling core business stabilization.
- Corporate win rates improved 500 basis points year-to-date, with multiyear contracts for policy data now 50% of new ARR, up from 20% in 2024. Average contract values (ACV) increased due to expanded global data packages.
- PolicyNote platform enhancements (e.g., AI-powered legislative drafting, Bill Comparison) drove 35+ product updates, with 98% of legacy users migrated to PolicyNote, completing transition by year-end.
- Automation initiatives in R&D and operations are reducing costs and accelerating feature development, with 2026 focus on scaling automation for efficiency and growth.

**【CFO Financial Commentary】**
- Full-year 2025 guidance updated to $95-96 million revenue and $10 million adjusted EBITDA, narrowing prior range. Q4 2025 revenue expected $22-23 million, with EBITDA $2 million.
- Subscription revenue $21.2 million (94% of total), ARR decline of $7.4 million (2024 divestitures). NRR 98% (flat year-over-year, +200bps sequentially).
- Operating expenses decreased 11% YoY ($4 million reduction), with G&A up 31% due to non-recurring costs. Gross margin 79% (flat YoY), adjusted gross margin 87% (up 1% YoY).
- Federal sector disruption (e.g., government shutdown) reduced Q3 revenue by $2-3 million, impacting public sector ARR but offset by corporate strength.

**【Q&A Key Highlights】**
- **ACV Growth Drivers**: Expansion of global data packages into enterprise use cases, driving higher-value deals.
- **Migration Churn**: No material churn from PolicyNote transition; usage metrics indicate strong engagement post-migration.
- **Automation Impact**: R&D leveraging AI to accelerate feature development (e.g., 35+ updates in 2025), with operational automation reducing costs and improving efficiency.
- **Federal Sector Volatility**: Shutdown reduced Q3 federal revenue by $2-3 million, but corporate pipeline strength offsets this risk.
- **2026 Outlook**: Focus on gross retention via PolicyNote adoption and multiyear contracts, with automation as key efficiency lever.

FiscalNote Holdings, Inc. (NOTE) Q3 2025 Earnings Call Transcript

- **EBITDA margin expansion**: 12% in Q2 2025 (vs. 4% pro forma in Q2 2024), signaling operational improvement.
- **Debt refinancing success**: Extended debt maturity to 2029 with MGG, supporting long-term growth.
- **ARR decline but hope for recovery**: ARR down 8% YoY to $85.9 million, but expect growth to resume in H2 2025.
- **PolicyNote adoption surge**: More daily active users than legacy platform, with engagement metrics improving steadily.
- **Multiyear contracts boost retention**: Corporate multiyear signings doubled, stabilizing gross retention for 2026.
- **Guidance reaffirmed**: Full year 2025 revenue $94-100 million, EBITDA $10-12 million.

**【CEO Summary Section】**
- **Adjusted EBITDA growth**: Q2 2025 adjusted EBITDA of $2.8 million, margin expanded to 12% (vs. 4% pro forma in Q2 2024), driven by cost discipline and operational efficiency.
- **Debt refinancing**: Announced refinancing with MGG Investment Group, extending debt maturity to 2029, providing runway for growth.
- **Revenue and ARR**: Q2 revenue $23.3 million (above guidance), ARR $85.9 million (down 8% YoY on pro forma basis due to legacy platform challenges). Expect ARR growth to resume in H2 2025.
- **New logo momentum**: Corporate win rate improved 400bps QoQ, ACV increased, with 45% higher pipeline at end of Q2 vs. Q1.
- **PolicyNote adoption**: PolicyNote now has more daily active users than legacy platform, with engagement metrics (e.g., search frequency, AI assistant usage) improving steadily.
- **Legacy platform transition**: Plan to deprecate at least one legacy platform in 2025, with migration to PolicyNote ahead of schedule.

**【CFO Financial Commentary】**
- **Revenue performance**: Q2 subscription revenue $21.4 million (92% of total), pro forma sub revenue down $1.8 million YoY due to legacy platform transition.
- **Gross margin**: 79% (up 200bps YoY), adjusted gross margin 86% (up 100bps YoY), reflecting cost optimization.
- **Operating expenses**: Total OpEx down 17% YoY, excluding non-recurring costs, OpEx down 15%.
- **Cash and liquidity**: $39.2 million in cash and investments, up from prior-year levels.
- **Guidance reaffirmed**: Full year 2025 revenue $94-100 million, adjusted EBITDA $10-12 million; Q3 revenue $22-23 million, EBITDA $2 million.

**【Q&A Highlights】**
- **ARR growth drivers**: CEO emphasized retention improvements (via PolicyNote migration and multiyear contracts) as key to reversing ARR decline, with new logo momentum supporting growth.
- **PolicyNote features**: Ongoing enhancements (e.g., legislative drafting AI, global data packages) driving engagement and expansion opportunities.
- **Federal sector challenges**: Acknowledged instability in U.S. federal sector but noted opportunities for efficiency gains with FiscalNote's solutions.
- **Multiyear signings impact**: Doubling of multiyear corporate contracts will stabilize gross retention starting in 2026, reducing renewal volatility.


FiscalNote (NOTE)-7 Aug 25-2025 Q2 Earnings call transcript

- **Profitability Boost**: Q1 adj. EBITDA up 600% YoY to $2.8M, free cash flow improving $70M+ over 12 months.
- **Debt Simplification**: $96M debt reduction since Q4 2023, interest expense cut 60% to $2M/Q.
- **Pipeline Surge**: Inbound pipeline +20% YoY, Europe pipeline doubling; 75% of PolicyNote migrated accounts now healthy.
- **Multi-Year Momentum**: New corporate multi-year deals at +100% ARR YoY rate, signaling long-term customer confidence.
- **Cash Position**: $46.9M cash post-TimeBase sale, on track for positive free cash flow in 2025.

**【CEO Opening Remarks】**
- **Adjusted EBITDA Performance**: Q1 2025 adjusted EBITDA of $2.8 million (10% margin vs. 4% YoY), with $70M+ 12-month free cash flow improvement.
- **Debt Reduction**: Senior term loan reduced by $96M since Q4 2023, cash interest expense down 60% to $2M/Q.
- **ARR & Pipeline**: ARR $88M (down 6% YoY due to divestitures), Q1 inbound pipeline +20% YoY, Europe pipeline +100% YoY.
- **PolicyNote Platform**: 75% of migrated accounts healthy, 33% power users; 15+ new features launched, including Tariff Tracker with $1M pipeline in 2 weeks.
- **Multi-Year Deals**: New corporate customers committing to multi-year contracts at +100% ARR YoY rate.

**【CFO Financial Highlights】**
- **Revenue**: Q1 $27.5M (vs. $26-27M guidance), subscription 92% of total, ARR $88M (pro forma -6% YoY).
- **Margins**: Gross margin 75% (down 200bps YoY due to legacy product sunsetting), adjusted gross margin 87% (up 200bps YoY).
- **Cost Control**: OpEx down $2.3M (-5% YoY), R&D -11%, S&M -18%, G&A flat (excl. $3M non-cash M&A costs).
- **Balance Sheet**: $46.9M cash (incl. $6.5M TimeBase sale proceeds), term loan $62M (vs. $89M at year-end).
- **Guidance**: FY25 revenue $94-100M, adj. EBITDA $10-12M; Q2 rev $22-24M (sequential decline due to divestiture tailwinds in Q1).

FiscalNote (NOTE)-12 May 25-2025 Q1 Earnings call transcript

- **Profitability Leap**: 2024 adjusted EBITDA up 1,400 basis points to $9.8 million; 2025 targets $10M-$12M, doubling margins.
- **Debt Reduction Success**: Senior debt cut 60% in 2024; $30M asset sale proceeds to further deleverage.
- **PolicyNote Growth Engine**: Multiyear contracts up 100%, ARR growth expected H2 2025, and $10/$1 value proposition driving gov savings.
- **Cash Flow Turnaround**: 2024 cash flow improved $30M; 2025 guidance signals accelerating free cash flow trajectory.

**【CEO Summary Section】**
- **Adjusted EBITDA Margin Expansion**: Achieved $9.8 million in 2024, a 1,400 basis point improvement year-over-year, driven by operational efficiency and cost reductions. 2025 guidance targets $10 million to $12 million, doubling 2024 margins on a pro forma basis.
- **Debt Reduction and Cash Flow**: Senior debt reduced by over 60% in 2024, with plans to further deleverage through asset sales. Cash flow from operations improved by $30 million in 2024, accelerating the path to positive free cash flow.
- **PolicyNote Platform Momentum**: Launched in January 2025, PolicyNote is driving higher customer engagement with AI features, multiyear contract signings doubling year-over-year, and ARR growth expected in the second half of 2025.

**【CFO Financial Commentary】**
- **2024 Financial Highlights**: Total revenue $120.3 million, adjusted EBITDA $9.8 million (first full year of profitability), and cash flow from operations improved to -$5.3 million (vs. -$35.3 million in 2023).
- **Cost Efficiency**: Operating expenses decreased 24% year-over-year, with R&D, sales & marketing, and G&A costs down 28%, 28%, and 27%, respectively. Gross margin improved to 87% in Q4 2024.
- **2025 Guidance**: Revenue $94 million to $100 million, adjusted EBITDA $10 million to $12 million. Q1 2025 revenue expected $26 million to $27 million, with $2 million adjusted EBITDA.

**【Q&A Key Takeaways】**
- **PolicyNote Adoption**: High engagement with AI features, including automated alerts and content discovery, with customers reporting $10 saved for every dollar spent.
- **Debt Targeting**: Aiming for 2x-3x leverage ratio over the next few years, with cash interest expense reduced to $2 million per quarter post-asset sales.
- **Copilot Performance**: Broadly available feature driving product-led sales, with strong usage metrics but no disclosed upsell/cross-sell breakdown.

NOTE

NOTE fundamentals

Earnings Call

You can ask Aime