NOTE — FiscalNote Holdings, Inc.

FiscalNote Holdings, Inc. Q3 2025 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: Q3 2025 revenue was $22.4 million, aligning with guidance but down $7 million year-over-year, primarily due to divestitures.
• Adjusted EBITDA: Reported at $2.2 million, exceeding guidance and marking the fifth consecutive quarter with margins above 10%.
• Annual Recurring Revenue (ARR): Stood at $84.8 million, down from $92.2 million in the prior year but showing a slight quarter-over-quarter increase of $100,000.
• Net Revenue Retention (NRR): Remained stable at 98%, reflecting improved customer retention metrics.
• Operating Expenses: Decreased by 11% year-over-year, with significant reductions in cost of revenue, R&D, sales and marketing, and editorial expenses.

2. Strategic Updates and Business Highlights:

• Product Development: Launched over 35 enhancements to the PolicyNote platform since January, including AI-driven features that improve customer engagement and retention.
• Sales Performance: New logo bookings showed continued improvement, with higher average contract values (ACVs) and increased win rates among corporate clients.
• Customer Migration: The transition from the legacy FiscalNote platform to PolicyNote is progressing well, with no significant churn reported during the migration process.
• Balance Sheet Strengthening: Successfully extended debt maturities by four years, improving capital structure and providing flexibility for strategic execution.

3. Forward Guidance and Outlook:

• 2025 Revenue Guidance: Updated to a range of $95 million to $96 million, slightly narrowed from previous estimates.
• Adjusted EBITDA Guidance: Projected at approximately $10 million for the full year, consistent with earlier forecasts.
• Q4 2025 Expectations: Anticipated revenue of $22 million to $23 million and adjusted EBITDA of approximately $2 million.

4. Challenges and Points of Concern:

• Impact of Federal Government Shutdown: The ongoing shutdown is expected to result in a revenue impact of $2 million to $3 million for the full year, adding volatility to the federal sector.
• Year-over-Year Revenue Decline: The overall revenue decline due to divestitures raises concerns about the sustainability of growth in the core business.
• Transition Risks: While migration to PolicyNote has been smooth, the long-term effects on customer retention and revenue growth remain to be fully realized.

5. Notable Q&A Insights:

• ACV Growth Drivers: The increase in average contract values is primarily attributed to better leveraging of global data packages, enhancing use cases for larger corporate clients.
• Customer Migration Success: Management confirmed that the migration to PolicyNote has not resulted in increased churn, indicating strong customer satisfaction and engagement.
• Future ARR Growth Timeline: While management is optimistic about stabilization, they refrained from providing specific timelines for renewed year-over-year ARR growth, emphasizing the importance of gross and net retention improvements.
• Federal Sector Volatility: The impact of the federal government shutdown is acknowledged as a significant challenge, with ongoing uncertainties affecting revenue projections.

Overall, FiscalNote's Q3 2025 results reflect a disciplined approach to cost management and strategic growth initiatives, despite facing challenges in the federal sector and the impacts of prior divestitures. The company remains focused on product innovation and customer retention as it navigates these headwinds.