NOTE-WT — FiscalNote Holdings, Inc.

FiscalNote Holdings, Inc. Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Total Revenue: $22.4 million, in line with guidance but down $7 million year-over-year due to divestitures.
• Adjusted EBITDA: $2.2 million, exceeding guidance and marking the ninth consecutive quarter of positive adjusted EBITDA, with a margin of 10%.
• Annual Recurring Revenue (ARR): $84.8 million, down from $92.2 million in 2024 on a pro forma basis, but showed a slight sequential increase of $100,000 from Q2 2025.
• Net Revenue Retention (NRR): 98%, consistent with the previous year and improved by 200 basis points from Q2 2025.
• Operating Expenses: Decreased by 11% year-over-year, reflecting cost discipline and operational efficiency.

2. Strategic Updates and Business Highlights:

• The company is focusing on a product-led strategy, with significant enhancements to the PolicyNote platform, including AI-driven features that improve customer engagement and retention.
• Corporate new logo sales showed strong momentum, with win rates among enterprise clients improving by 400 basis points quarter-over-quarter.
• The transition from the legacy FiscalNote platform to PolicyNote is progressing well, with most customers migrated and positive usage metrics reported.
• The balance sheet was strengthened by extending maturities on debt, providing flexibility for future growth initiatives.

3. Forward Guidance and Outlook:

• FiscalNote updated its full-year 2025 revenue guidance to $95 million to $96 million and adjusted EBITDA to approximately $10 million, both within previously established ranges.
• Fourth-quarter revenue is expected to be between $22 million and $23 million, with adjusted EBITDA projected at approximately $2 million.
• The company is optimistic about continued growth momentum and improving operational efficiency, aiming for sustainable long-term profitability.

4. Bad News, Challenges, or Points of Concern:

• Revenue decline year-over-year is primarily attributed to divestitures, which may impact future growth.
• The federal government shutdown is causing volatility in the public sector, with an estimated impact of $2 million to $3 million on revenue for the year.
• ARR is still below prior year levels, indicating challenges in achieving consistent growth.

5. Notable Q&A Insights:

• CEO Josh Resnik highlighted that the increase in average contract values (ACV) is driven by better leveraging global data and expanding use cases within corporate clients.
• There has been no significant churn associated with the migration to PolicyNote, indicating a successful transition.
• Resnik noted that while they do not provide specific ARR guidance, they are encouraged by stabilization and early traction in the business.
• The impact of the federal shutdown is still uncertain, and the company is monitoring the situation closely.

Overall, FiscalNote's Q3 2025 results reflect a disciplined approach to managing costs and a focus on product innovation, despite facing challenges in revenue growth due to external factors. The outlook remains cautiously optimistic as the company aims for sustainable growth.