NOTE — FiscalNote Holdings, Inc.

FiscalNote Holdings, Inc. (NOTE) 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 fifth consecutive quarter with margins at or above 10%.
• Annual Recurring Revenue (ARR): $84.8 million, a decline from $92.2 million in the prior year but a slight sequential increase of $100,000 from Q2 2025.
• Net Revenue Retention (NRR): 98%, consistent with the prior year and an improvement of 200 basis points from Q2 2025.
• Cash Position: $31.8 million in cash and cash equivalents at the end of Q3 2025.

2. Strategic Updates and Business Highlights:

• Cost Management: Operating expenses decreased by 11% year-over-year, driven by efficiency measures. Specific reductions were noted in cost of revenue, R&D, sales and marketing, and editorial expenses.
• Product Innovation: Launched over 35 enhancements to the PolicyNote platform, including AI-driven features that improve customer engagement and retention.
• Corporate Sales Momentum: New logo sales and higher average contract values (ACVs) were highlighted, particularly in the corporate sector, with multiyear contracts now comprising 50% of new logo ARR.
• Migration Success: The transition from the legacy FiscalNote platform to PolicyNote is on track for completion by year-end, with no significant churn reported during the migration.

3. Forward Guidance and Outlook:

• 2025 Revenue Guidance: Narrowed to $95 million to $96 million, reflecting strong core business performance despite public sector disruptions.
• Adjusted EBITDA Guidance: Projected at approximately $10 million for the full year, remaining within previous ranges.
• Q4 2025 Expectations: Anticipated revenues of $22 million to $23 million and adjusted EBITDA of approximately $2 million.

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

• Impact of Federal Government Shutdown: Ongoing volatility in the federal sector, exacerbated by the government shutdown, is expected to impact revenue by $2 million to $3 million for the full year.
• Declining ARR: While there was stabilization noted, the year-over-year decline in ARR raises concerns about long-term growth prospects.
• Divestitures Impact: Revenue declines are attributed to recent divestitures, which may hinder growth in the short term.

5. Notable Q&A Insights:

• Higher ACVs: The increase in average contract values is primarily driven by enhanced global data offerings, which are appealing to larger corporate clients.
• Migration to PolicyNote: The transition has not resulted in increased churn, indicating successful customer engagement post-migration.
• Future ARR Growth: Management refrained from providing specific timelines for renewed year-over-year ARR growth, emphasizing a focus on improving gross and net retention.
• Federal Sector Volatility: The uncertainty surrounding the federal government shutdown continues to pose risks, with management unable to quantify the full impact due to the ongoing nature of the situation.

Overall, FiscalNote's Q3 2025 results reflect a disciplined approach to cost management and strategic growth initiatives, though challenges remain in the federal sector and with ARR metrics.