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Business Wire
2 days ago
- Business
- Business Wire
FiscalNote Accelerates AI Innovation with New Enhancements to PolicyNote for Legislative Forecasting, Alerts, and Bill Discovery
WASHINGTON--(BUSINESS WIRE)-- FiscalNote Holdings, Inc. (NYSE: NOTE), the leading provider of AI-driven policy and regulatory intelligence solutions, today announced a series of powerful new enhancements to its PolicyNote platform, including AI-powered bill forecasts, a redesigned experience for PolicyNote's AI-powered alerts, and AI-driven detection of substantively similar bills, all designed to help the Company's nearly 4,000 customers act faster, prioritize smarter, and stay ahead of legislative change. These new capabilities demonstrate FiscalNote's transformed product-led culture and its rapid pace of innovation as the organization invests in improving policy information and workflow tools with intelligent, personalized features that anticipate customer needs and deliver meaningful results. "These most recent upgrades exemplify what our product-led growth strategy is all about: innovating rapidly, delivering impact, and solving urgent customer challenges,' said Josh Resnik, CEO & President, FiscalNote. 'We're moving quickly and confidently, adding high-value, AI-driven capabilities to PolicyNote that give our customers a tangible edge in a complex and chaotic policy environment." AI-Powered Alerts: The newly redesigned Alerts page serves as a real-time command center. With expanded and compact view options, users can easily scan all legislative alerts across projects, drill down into specific items, and view critical context like sponsor details and summaries. This upgrade eliminates hours of manual review and lets users focus on strategy and impact. Bill Forecasts: With legislation constantly moving, it's no longer enough to simply track bills – users need to anticipate what's likely to happen next. PolicyNote's new bill forecast feature uses advanced data modeling to predict the likelihood of a bill reaching the floor and passing in each chamber. Powered by years of data on legislative behavior, sponsor activity, demographic trends, and more, these forecasts enable users to allocate resources more effectively and efficiently, and plan strategic engagements with precision. Similar Bills: PolicyNote's new Similar Bills feature uses AI to automatically identify and display legislation with significant textual similarities, including companion, reintroduced, and model bills — across sessions and jurisdictions. This will allow customers to instantly find related bills, eliminating time-consuming manual searches. With Similar Bills, users will be able to quickly spot policy trends and make informed decisions, streamlining their workflow. These new capabilities are the latest in a fast-moving series of product launches that continue to expand PolicyNote's utility and value. By combining best-in-class AI, proprietary information and insights, and a relentless focus on customer success, FiscalNote is redefining how policy professionals anticipate, analyze, and act on critical developments. For more information on FiscalNote and its PolicyNote platform, please visit About FiscalNote FiscalNote (NYSE: NOTE) is the leading provider of AI-driven policy and regulatory intelligence solutions. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, and Asia. To learn more about FiscalNote and its suite of solutions, visit and follow @FiscalNote.
Yahoo
12-05-2025
- Business
- Yahoo
FiscalNote Reports First Quarter 2025 Financial Results
First Quarter 2025 Revenue and Adjusted EBITDA Exceed Forecasts, Reflecting Continued Progress on Path to Sustained Growth and Profitability FY25 Guidance Reaffirmed and Second Quarter 2025 Forecast Established, Indicating Accelerating Momentum from Product-Led Growth Strategy, Ongoing Operational Discipline, and Continued Targeted Investments in Future Organic Growth Drivers Continues Business Streamlining; Closes Divestiture of Oxford Analytica and Dragonfly Intelligence and Announces Agreement to Sell TimeBase, Enabling Further Strengthening of Balance Sheet Board of Directors Continues to Review All Strategic Options Available to the Company to Maximize Shareholder Value Company to Host Conference Call Today at 5:00 PM EDT WASHINGTON, May 12, 2025--(BUSINESS WIRE)--FiscalNote Holdings, Inc. (NYSE: NOTE) ("FiscalNote" or the "Company"), the leading AI-driven enterprise SaaS technology provider of policy and global intelligence, today reported financial results for the first quarter ended March 31, 2025. The Company reported strong results in the quarter with $27.5 million in total revenues and $2.8 million of adjusted EBITDA(1), both exceeding expectations. This performance was driven by diligent expense management and the ongoing impact of efficiency initiatives previously put in place, resulting in improving operating leverage and therefore expanding adjusted EBITDA and adjusted EBITDA margins. In addition, and as announced last week, the Company reaffirmed its guidance for full year 2025. Notwithstanding the financial impact of the recently announced divestiture of the Australia-based subsidiary, TimeBase, the Company continues to project total revenues of $94-$100 million and adjusted EBITDA of $10-$12 million. This reaffirmation reflects the Company's continued confidence in its operating plan and execution, with accelerating performance in the second half of the year driven largely by recent investments in its core policy offering such as the launch of, and numerous enhancements to, its new PolicyNote platform. The Company also is seeing positive impacts from its operational streamlining and management restructuring earlier in the year. Josh Resnik, CEO and President of FiscalNote, commented, "FiscalNote's strong first quarter performance reflects disciplined execution as we focus on product-led growth, streamlining the organization, and reducing the Company's debt. Our numerous product launches and enhancements, paired with improved execution across teams, are the building blocks of long term sustainable growth, along with expanding adjusted EBITDA margins and continued debt reduction. Reaffirming our full-year 2025 guidance underscores our confidence that this focus on product innovation and operating discipline is positioning the Company for accelerating, durable growth in the quarters ahead." First Quarter 2025 Financial Highlights(2) (Unaudited) Three Months Ended March 31, ($ in millions) 2025 2024 % Change Total Revenues (formerly "GAAP Revenue") $ 27.5 $ 32.1 (14 ) % Subscription Revenue as % of Total Revenues 92 % 92 % - Gross Profit $ 20.5 $ 24.9 (18 ) % Gross Margin 75 % 77 % (200 ) bps Adjusted Gross Profit (1) $ 24.1 $ 27.3 (12 ) % Adjusted Gross Margin (1) 87 % 85 % 200 bps Net (Loss) Income $ (4.3 ) $ 50.6 * Adjusted EBITDA (1) $ 2.8 $ 1.2 * Adjusted EBITDA Margin (1) 10 % 4 % 600 bps Cash and Cash Equivalents $ 46.9 $ 44.5 bps - Basis Points * - percentage change is greater than +/- 100% Note - All amounts for the three months ended March 31, 2025 and March 31, 2024 include contributions from the Oxford Analytica and Dragonfly Intelligence businesses, which the Company divested on March 31, 2025. Similarly, all amounts for the three months ended March 31, 2024 include contributions from the and Aicel businesses, which the Company divested on March 11, 2024 and October 31, 2024, respectively. First Quarter 2025 and Recent Operational Highlights Unveiled in January PolicyNote, the Company's new AI-focused platform for policy and regulation, leveraging FiscalNote's breadth and depth of data as well as its proprietary policy analysis and AI technology via a consolidated user interface to drive deeper customer engagement, strengthen customer retention, accelerate future innovation, reduce ongoing maintenance costs, and expand long-term growth opportunities. Launched in March a new AI-powered presidential actions widget to track the unprecedented volume of executive orders, expanding and broadening the policy intelligence capabilities of the PolicyNote platform while empowering organizations to stay ahead of fast moving White House actions. Launched in March a new EU Defense and Space Policy vertical to enable customers to gain a critical edge in anticipating and responding to impactful EU-level policy shifts. Enhanced in April the PolicyNote platform with the rapid launch of a dedicated Tariff Tracker to help organizations navigate highly volatile global trade policies. Expanded in April the leadership team with key technology appointments to drive product-led growth and innovation in AI-powered policy management solutions. Completed on March 31 the sale of Oxford Analytica and Dragonfly Intelligence to Dow Jones for total consideration of $40.0 million. Announced in early May the signing of a definitive agreement to divest TimeBase, the Company's Australia subsidiary, to Thomson Reuters for total consideration of $6.5 million, with a closing anticipated promptly following the receipt of antitrust clearance in Australia and other customary closing conditions. First Quarter 2025 Financial Performance Revenue(2) (Unaudited) Three Months Ended March 31, ($ in millions) 2025 2024 % Change Subscription revenue $ 25.2 $ 29.6 (15 ) % Advisory, advertising, and other revenue 2.3 2.5 (8 ) % Total revenues $ 27.5 $ 32.1 (14 ) % For Q1 2025, subscription revenue declined $4.4 million, or 15%, versus prior year, due principally to the impact of the and Aicel divestitures. Excluding the impact of and Aicel, subscription revenue decreased by $1.1 million, or 4%. For Q1 2025, advisory, advertising, and other revenue decreased $0.2 million, or 8%, versus prior year, due primarily to the discontinuation of certain non-strategic products. Key Performance Indicators(2)(3) Management relies on key performance indicators (KPIs) in order to gauge the financial and operational condition of the Company. The following is a selection of such KPIs. As of March 31, ($ in millions) 2025 2024 % Change Annual Recurring Revenue (ARR) $ 87.7 $ 109.6 (20 )% Pro Forma ARR* $ 87.7 $ 94.4 (7 )% Net Revenue Retention (NRR) 93 % 96 % (300) bps Pro Forma NRR* 93 % 96 % (300) bps * - Pro Forma ARR and NRR adjusts prior periods for the impact of the divestiture of Aicel, Oxford Analytica and Dragonfly Intelligence As of March 31, 2025, ARR declined $21.9 million, or 20%, on an as reported basis, and $6.7 million, or 7%, on a proforma basis (excluding Aicel Technologies, Oxford Analytica, and Dragonfly Intelligence), versus prior year, principally due to the impact of the divestitures that occurred across the twelve month reporting period and, to a lesser extent, other operational factors previously disclosed and addressed by the Company. The Company anticipated declines in these KPIs in Q1 and remains confident in a return to ARR growth in the second half of this year due to investment in product-led growth as well as the recent management changes and improvements in operations. Operating Expenses(2) (Unaudited) Three Months Ended March 31, ($ in millions) 2025 2024 % Change Cost of revenues, including amortization $ 7.0 $ 7.2 (3 )% Research and development 3.1 3.5 (11 )% Sales and marketing 7.8 9.4 (18 )% Editorial 4.8 4.7 2 % General and administrative 16.3 16.1 1 % Amortization of intangible assets 2.3 2.7 (15 )% Total operating expenses $ 41.3 $ 43.6 (5 )% In Q1 2025, operating expenses decreased $2.3 million, or 5%, versus prior year, primarily due to the divestitures of and Aicel, ongoing operating efficiency measures, and the elimination of costs associated with sunset products. Excluding amortization expense, stock-based compensation, the impact of the sale of and Aicel, transaction costs, severance, and other non-cash charges, operating expenses decreased approximately $4 million, or 14%. 2025 Financial Forecast The Company's financial forecast for 2025 incorporates the following considerations: incremental cost savings related to ongoing operating discipline initiatives; further reduction in debt service costs; further sunsetting of non-core products; pacing of the migration to PolicyNote and the anticipated sales and customer retention benefits expected to accrue from this new consolidated customer interface; current market volatility, in particular in the private sector, where macroeconomic unpredictability is likely to impact corporate buying decisions and timelines over the course of the year; and potential impact in the public sector due to changes in the federal government. This forecast also: reflects management's expectations based on the most recent information available and is subject to adjustment due to changes in business conditions across the year ended December 31, 2025; and includes the contribution in the first quarter 2025 of approximately $4.0 million of revenues and approximately $1.0 million of adjusted EBITDA related to Oxford Analytica and Dragonfly Intelligence, two businesses that the Company divested on March 31, 2025. Full Year 2025 The Company reaffirms its full year 2025 forecast of total revenues of $94 to $100 million and adjusted EBITDA(4) of $10 to $12 million. 2Q 2025 The Company provides a 2Q 2025 forecast of total revenues of $22 to $24 million and adjusted EBITDA(4) of ~$2 million. Strategic Review The Company's Board of Directors, along with its advisors, continue to review the Company's ongoing plans and evaluate all strategic value-maximizing options available to the Company. There can be no assurance that the strategic review will result in any transaction or other outcome. The Company has not set a timetable for completion of the review and does not intend to disclose developments or provide updates on the progress or status of the review unless and/or until it deems further disclosure is appropriate or required. Conference Call and Webcast Information Company management will host a conference call at 5:00 p.m. EDT today, Monday, May 12, 2025, to discuss these financial results. LIVE By phone Dial for the U.S. or Canada 1 (800) 715-9871 or for International 1 (646) 307-1963 and enter the conference ID 7871199. By webcast Visit the Investor Relations section of the Company's website. REPLAY By phone (available through Monday, May 19, 2025) Dial for the U.S. or Canada 1 (800) 770-2030 or for International 1 (609) 800-9099 and enter the conference ID 7871199. By webcast Visit the Investor Relations section of the Company's website. Footnotes (1) Non-GAAP measure. See "Non-GAAP Financial Measures" and the reconciliation tables for the definitions and reconciliations of these non-GAAP financial measures to the most closely related GAAP financial measures. (2) All financial information incorporated within this press release is unaudited. (3) "Annual Recurring Revenue" and "Net Revenue Retention" are key performance indicators (KPIs). See "Key Performance Indicators" for the definitions and important disclosures related to these measures. (4) Because of the variability of items impacting net income and the unpredictability of future events, management is unable to reconcile without unreasonable effort the Company's forecasted adjusted EBITDA to a comparable GAAP measure. The unavailable information could have a significant impact on the non-GAAP measures. About FiscalNote FiscalNote (NYSE: NOTE) is the leading provider of AI-driven policy and regulatory intelligence solutions. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, Asia, and Australia. To learn more about FiscalNote and its suite of solutions, visit and follow @FiscalNote. Safe Harbor Statement Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FiscalNote's future financial or operating performance. For example, statements regarding FiscalNote's financial outlook for future periods, expectations regarding profitability, capital resources and anticipated growth in the industry in which FiscalNote operates are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "pro forma," "may," "should," "could," "might," "plan," "possible," "project," "strive," "budget," "forecast," "expect," "intend," "will," "estimate," "anticipate," "believe," "predict," "potential" or "continue," or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include: FiscalNote's concentration of revenues from U.S. government agencies, changes in the U.S. government spending priorities, dependence on winning or renewing U.S. government contracts, delay, disruption or unavailability of funding on U.S. government contracts, and the U.S. government's right to modify, delay, curtail or terminate contracts; FiscalNote's ability to successfully execute on its strategy to achieve and sustain organic growth through a focus on its core Policy business, including risks to FiscalNote's ability to develop, enhance, and integrate its existing platforms, products, and services, bring highly useful, reliable, secure and innovative products, product features and services to market, attract new customers, retain existing customers, expand its products and service offerings with existing customers, expand into geographic markets or identify other opportunities for growth; FiscalNote's future capital requirements, as well as its ability to service its repayment obligations and maintain compliance with covenants and restrictions under its existing debt agreements; demand for FiscalNote's services and the drivers of that demand; the impact of cost reduction initiatives undertaken by FiscalNote; risks associated with international operations, including compliance complexity and costs, increased exposure to fluctuations in currency exchange rates, political, social and economic instability, potential imposition of new or novel taxes on digital or subscription sales on the platforms, products and services FiscalNote provides, and supply chain disruptions; FiscalNote's ability to introduce new features, integrations, capabilities, and enhancements to its products and services, as well as obtain and maintain accurate, comprehensive, or reliable data to support its products and services; FiscalNote's reliance on third-party systems and data, its ability to integrate such systems and data with its solutions and its potential inability to continue to support integration; FiscalNote's ability to maintain and improve its methods and technologies, and anticipate new methods or technologies, for data collection, organization, and analysis to support its products and services; potential technical disruptions, cyberattacks, security, privacy or data breaches or other technical or security incidents that affect FiscalNote's networks or systems or those of its service providers; competition and competitive pressures in the markets in which FiscalNote operates, including larger well-funded companies shifting their existing business models to become more competitive with FiscalNote; FiscalNote's ability to comply with laws and regulations in connection with selling products and services to U.S. and foreign governments and other highly regulated industries; FiscalNote's ability to retain or recruit key personnel; FiscalNote's ability to adapt its products and services for changes in laws and regulations or public perception, or changes in the enforcement of such laws, relating to artificial intelligence, machine learning, data privacy and government contracts; adverse general economic and market conditions reducing spending on our products and services; the outcome of any known and unknown litigation and regulatory proceedings; FiscalNote's ability to maintain public company-quality internal control over financial reporting; and FiscalNote's ability to protect and maintain its brands and other intellectual property rights. These and other important factors discussed in FiscalNote's SEC filings, including its most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by FiscalNote and its management, are inherently uncertain. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements, which speak only as of the date they are made. FiscalNote undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. FiscalNote Holdings, Inc. Consolidated Statements of Operations and Comprehensive Income (Loss) (unaudited) (in thousands, except shares and per share data) Three Months Ended March 31, 2025 2024 Revenues: Subscription $ 25,232 $ 29,626 Advisory, advertising, and other 2,279 2,486 Total revenues 27,511 32,112 Operating expenses: (1) Cost of revenues, including amortization 6,984 7,244 Research and development 3,103 3,480 Sales and marketing 7,759 9,415 Editorial 4,798 4,660 General and administrative 16,298 16,076 Amortization of intangible assets 2,331 2,685 Transaction gains, net - (4 ) Total operating expenses 41,273 43,556 Operating loss (13,762 ) (11,444 ) Gain on sale of businesses (15,743 ) (71,599 ) Interest expense, net 5,127 7,362 Loss on debt extinguishment, net 1,784 - Change in fair value of financial instruments (671 ) 527 Other expense, net 30 241 Net (loss) income before income taxes (4,289 ) 52,025 (Benefit) provision from income taxes (39 ) 1,426 Net (loss) income (4,250 ) 50,599 Other comprehensive income 301 5,591 Total comprehensive (loss) income $ (3,949 ) $ 56,190 Earnings (Loss) per share attributable to common shareholders: Basic $ (0.03 ) $ 0.39 Diluted $ (0.03 ) $ 0.37 Weighted average shares used in computing earnings (loss) per share attributable to common shareholders: Basic 151,289,278 130,712,032 Diluted 151,289,278 146,027,085 (1) Amounts include stock-based compensation expenses, as follows: Three Months Ended March 31, 2025 2024 Cost of revenues $ 15 $ 101 Research and development 326 310 Sales and marketing 85 426 Editorial 66 100 General and administrative 2,883 5,238 FiscalNote Holdings, Inc. Consolidated Balance Sheets (in thousands, except shares, and par value) (Unaudited) March 31, 2025 December 31, 2024 Assets Current assets: Cash and cash equivalents $ 41,730 $ 28,814 Restricted cash 642 640 Short-term investments 4,526 5,796 Accounts receivable, net 11,122 13,465 Costs capitalized to obtain revenue contracts, net 2,692 3,016 Prepaid expenses 2,417 2,548 Other current assets 2,324 2,908 Total current assets 65,453 57,187 Property and equipment, net 4,782 5,051 Capitalized software costs, net 12,468 15,099 Noncurrent costs capitalized to obtain revenue contracts, net 2,701 3,197 Operating lease assets 14,908 15,620 Goodwill 139,575 159,061 Customer relationships, net 34,625 41,717 Database, net 15,629 16,147 Other intangible assets, net 9,480 13,018 Other non-current assets 64 100 Total assets $ 299,685 $ 326,197 Liabilities and Stockholders' Equity Current liabilities: Current maturities of long-term debt $ 9 $ 36 Accounts payable and accrued expenses 9,557 8,462 Deferred revenue, current portion 35,942 35,253 Customer deposits 704 1,850 Operating lease liabilities, current portion 3,093 3,386 Other current liabilities 1,714 2,266 Total current liabilities 51,019 51,253 Long-term debt, net of current maturities 117,949 147,041 Deferred tax liabilities 861 1,934 Deferred revenue, net of current portion 617 222 Operating lease liabilities, net of current portion 21,775 22,490 Public and private warrant liabilities 2,612 2,458 Other non-current liabilities 3,436 2,968 Total liabilities 198,269 228,366 Commitment and contingencies Temporary equity (2,596,050 Class A Common Stock issued and outstanding at March 31, 2025) 2,719 - Stockholders' equity: Class A Common stock ($0.0001 par value, 1,700,000,000 authorized, 143,756,376 and 142,794,386 issued and outstanding at March 31, 2025 and December 31, 2024, respectively) 14 14 Class B Common stock ($0.0001 par value, 9,000,000 authorized, 8,290,921 issued and outstanding at March 31, 2025 and December 31, 2024, respectively) 1 1 Additional paid-in capital 904,744 899,929 Accumulated other comprehensive income 5,087 4,786 Accumulated deficit (811,149 ) (806,899 ) Total stockholders' equity 98,697 97,831 Total liabilities, temporary equity and stockholders' equity $ 299,685 $ 326,197 FiscalNote Holdings, Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) Three Months Ended March 31, 2025 2024 Operating Activities: Net (loss) income $ (4,250 ) $ 50,599 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation 255 304 Amortization of intangible assets and capitalized software development costs 5,863 5,113 Amortization of deferred costs to obtain revenue contracts 883 1,009 Gain on sale of businesses (15,743 ) (71,599 ) Non-cash operating lease expense 531 297 Stock-based compensation 3,375 6,175 Bad debt expense 153 29 Change in fair value of acquisition contingent consideration - (4 ) Unrealized loss on securities 52 49 Change in fair value of financial instruments (671 ) 527 Deferred income taxes (39 ) (71 ) Paid-in-kind interest, net 1,961 2,035 Non-cash interest expense 1,044 737 Loss on debt extinguishment, net 1,784 - Changes in operating assets and liabilities: Accounts receivable, net (112 ) 1,320 Prepaid expenses and other current assets (78 ) (1,924 ) Costs capitalized to obtain revenue contracts, net (563 ) (932 ) Other non-current assets 31 148 Accounts payable and accrued expenses 2,310 460 Deferred revenue 8,614 10,436 Customer deposits (969 ) (1,239 ) Other current liabilities (144 ) 318 Contingent liabilities from acquisitions, net of current portion - (13 ) Operating lease liabilities (808 ) (969 ) Other non-current liabilities (193 ) (64 ) Net cash provided by operating activities 3,286 2,741 Investing Activities: Capital expenditures (1,982 ) (1,692 ) Cash proceeds from the sale of businesses, net 40,269 90,884 Net cash provided by investing activities 38,287 89,192 Financing Activities: Proceeds from long-term debt, net of issuance costs - 801 Principal payments of long-term debt (27,163 ) (65,727 ) Payment of deferred financing costs (1,793 ) (7,068 ) Proceeds from exercise of stock options and employee stock purchase plan purchases 148 196 Net cash used in financing activities (28,808 ) (71,798 ) Effects of exchange rates on cash 153 (119 ) Net change in cash, cash equivalents, and restricted cash 12,918 20,016 Cash, cash equivalents, and restricted cash, beginning of period 29,454 17,300 Cash, cash equivalents, and restricted cash, end of period $ 42,372 $ 37,316 Supplemental Noncash Investing and Financing Activities: Issuance of common stock for conversion of debt and interest $ 946 $ - Amounts held in escrow related to the sale of businesses $ 400 $ 785 Property and equipment purchases in accounts payable $ 64 $ 124 Supplemental Cash Flow Activities: Cash paid for interest $ 2,789 $ 5,303 Cash paid for taxes $ 65 $ 2 Non-GAAP Financial Measures In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), we use certain non-GAAP financial measures to clarify and enhance our understanding, and aid in the period-to-period comparison, of our performance. Where applicable, we provide reconciliations of these non-GAAP measures to the corresponding most closely related GAAP measure. Investors are encouraged to review the reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure. While we believe that these non-GAAP financial measures provide useful supplemental information, non-GAAP financial measures have limitations and should not be considered in isolation from, or as a substitute for, their most comparable GAAP measures. These non-GAAP financial measures are not prepared in accordance with GAAP, do not reflect a comprehensive system of accounting and may not be comparable to similarly titled measures of other companies due to potential differences in their financing and accounting methods, the book value of their assets, their capital structures, the method by which their assets were acquired and the manner in which they define non-GAAP measures. Adjusted Gross Profit and Adjusted Gross Profit Margin We define Adjusted Gross Profit as Total revenues minus cost of revenues, including amortization of capitalized software development costs and acquired developed technology, before amortization of intangible assets that are included in costs of revenues. We define Adjusted Gross Profit Margin as Adjusted Gross Profit divided by Total Revenues. We use Adjusted Gross Profit and Adjusted Gross Profit Margin to understand and evaluate our core operating performance and trends. We believe these metrics are useful measures to us and to our investors to assist in evaluating our core operating performance because they provide consistency and direct comparability with our past financial performance and between fiscal periods, as the metrics eliminate the non-cash effects of amortization of intangible assets that may fluctuate for reasons unrelated to overall operating performance. Adjusted Gross Profit and Adjusted Gross Profit Margin have limitations as analytical tools, and you should not consider them in isolation, or as a substitute for analysis of our results as reported under GAAP. They should not be considered as replacements for gross profit and gross profit margin, as determined by GAAP, or as measures of our profitability. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP measures only for supplemental purposes. Adjusted Gross Profit and Adjusted Gross Profit Margin as presented herein are not necessarily comparable to similarly titled measures presented by other companies. EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are non-GAAP financial measures. EBITDA represents earnings before interest expense, income taxes, depreciation and amortization. Adjusted EBITDA reflects further adjustments to EBITDA to exclude certain non-cash items and other items that management believes are not indicative of ongoing operations. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by Total Revenues. We disclose EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin herein because these non-GAAP measures are key measures used by management to evaluate our business, measure our operating performance and make strategic decisions. We believe that EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are useful for investors and others in understanding and evaluating our operating results in the same manner as management. EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin are not financial measures calculated in accordance with GAAP and should not be considered as substitutes for net income (loss), net income (loss) before income taxes, or any other operating performance measure calculated in accordance with GAAP. Using these non-GAAP financial measures to analyze our business would have material limitations because the calculations are based on the subjective determination of management regarding the nature and classification of events and circumstances that investors may find significant. In addition, although other companies in our industry may report measures titled EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin or similar measures, such non-GAAP financial measures may be calculated differently from how we calculate non-GAAP financial measures, which reduces their comparability. Because of these limitations, you should consider EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin alongside other financial performance measures, including net income and our other financial results presented in accordance with GAAP. Adjusted Gross Profit and Adjusted Gross Profit Margin The following table presents our calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin for the periods presented: Three Months Ended March 31, (In thousands) 2025 2024 Total revenues $ 27,511 $ 32,112 Costs of revenues, including amortization of capitalized software development costs and acquired developed technology (6,984 ) (7,244 ) Gross Profit $ 20,527 $ 24,868 Gross Profit Margin 75 % 77 % Gross Profit 20,527 24,868 Amortization of intangible assets 3,532 2,428 Adjusted Gross Profit $ 24,059 $ 27,296 Adjusted Gross Profit Margin 87 % 85 % EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin The following table presents our calculation of EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin for the periods presented: Three Months Ended March 31, (In thousands) 2025 2024 Net loss $ (4,250 ) $ 50,599 Income tax (benefit) provision (39 ) 1,426 Depreciation and amortization 6,118 5,417 Interest expense, net 5,127 7,362 EBITDA 6,956 64,804 Gain on sale of businesses (a) (15,743 ) (71,599 ) Stock-based compensation 3,375 6,175 Change in fair value of financial instruments (b) (671 ) 527 Other non-cash charges (c) 2,139 45 Acquisition and disposal related costs (d) 4,974 704 Employee severance costs (e) 1,344 107 Non-capitalizable debt costs 407 254 Costs incurred related to the Special Committee (f) - 200 Adjusted EBITDA $ 2,781 $ 1,217 Adjusted EBITDA Margin 10.1 % 3.8 % (a) Reflects the gain on disposal for the Dragonfly and Oxford Analytica on March 31, 2025 and the gain on sale of on March 11, 2024. (b) Reflects the non-cash impact from the mark to market adjustments on our financial instruments. (c) Reflects the non-cash impact of the following: (i) charge of $40 in the first quarter of 2025 related to the unrealized loss on investments; (ii) charge of $315 for fees satisfied with Common Stock of the Company; (iii) charge of $1,784 from the loss on debt extinguishment; (iv) charge of $49 in the first quarter of 2024 related to the unrealized loss on investments; and (v) gain of $4 in the first quarter of 2024 from the change in fair value related to the contingent consideration and contingent compensation related to the 2021, 2022, and 2023 Acquisitions. (d) Reflects the costs incurred related to the sale of Oxford Analytica and Dragonfly in Q1 2025 and in Q1 2024, principally consisting of transaction advisory, accounting, tax, and legal fees. (e) Severance costs associated with workforce changes related to business realignment actions (f) Reflects costs incurred related to the Special Committee. Key Performance Indicators We monitor the following key performance indicators to evaluate growth trends, prepare financial projections, make strategic decisions, and measure the effectiveness of our sales and marketing efforts. Our management team assesses our performance based on these key performance indicators because it believes they reflect the underlying trends of our business and serve as meaningful measures of our ongoing operational performance. Annual Recurring Revenue ("ARR") Over 90% of our revenues are subscription based, which leads to high revenue predictability. We use ARR as a measure of our revenue trend and an indicator of our future revenue opportunity from existing recurring subscription customer contracts. We calculate ARR on a parent account level by annualizing the contracted subscription revenue, and our total ARR as of the end of a period is the aggregate thereof. ARR is not adjusted for the impact of any known or projected future customer cancellations, upgrades or downgrades, or price increases or decreases. The amount of actual revenue that we recognize over any 12-month period is likely to differ from ARR at the beginning of that period, sometimes significantly. This may occur due to timing of the revenue bookings during the period, cancellations, upgrades, or downgrades and pending renewals. ARR should be viewed independently of revenue as it is an operating metric and is not intended to be a replacement or forecast of revenue. Our calculation of ARR may differ from similarly titled metrics presented by other companies. Net Revenue Retention ("NRR") Our NRR, which we use to measure our success in retaining and growing recurring revenue from our existing customers, compares our recognized recurring revenue from a set of customers across comparable periods. We calculate our NRR for a given period as ARR at the end of the period minus ARR contracted from new clients for which there is no historical revenue booked during the period, divided by the beginning ARR for the period. We calculate NRR at our parent account level. Our calculation of NRR for any fiscal period includes the positive recurring revenue impacts of selling additional licenses and services to existing customers and the negative recognized recurring revenue impacts of contraction and attrition among this set of customers. Our NRR may fluctuate as a result of a number of factors, including the level of our revenue base, the level of penetration within our customer base, expansion of products and features, the timing of renewals, and our ability to retain our customers. Our calculation of NRR may differ from similarly titled metrics presented by other companies. View source version on Contacts Media Yojin YoonFiscalNotepress@ Investor Relations Bob BurrowsFiscalNoteIR@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
05-05-2025
- Business
- Business Wire
FiscalNote Signs Definitive Agreement to Divest Additional Non-Core Asset to Further Streamline Company Operations and Strengthen Balance Sheet
WASHINGTON--(BUSINESS WIRE)-- FiscalNote Holdings, Inc. (NYSE: NOTE) ('FiscalNote' or the 'Company'), the leading provider of AI-driven policy and regulatory intelligence solutions, today announced it has entered into a definitive agreement to divest its Australian subsidiary, TimeBase, to Thomson Reuters Corporation (TSX/Nasdaq: TRI), a global content and technology company, for a total consideration of $6.5 million. The transaction is expected to close promptly following the receipt of antitrust clearance in Australia and other customary closing conditions. Upon closing, the Company will use net proceeds from this transaction to further pay down the existing balance of its senior term loan. Notwithstanding the financial impact of this divestiture, FiscalNote reaffirms its full year 2025 financial forecast. The Company continues to project total revenues of $94-$100 million and adjusted EBITDA of $10-$12 million. This reaffirmation reflects the Company's continued confidence in its operating plan and execution, even amid ongoing market volatility. Positive indicators continue to reinforce the Company's outlook for accelerating performance in the second half of the year, driven largely by recent investments in its core policy offering such as the launch and ongoing enhancement of its new PolicyNote platform. The Company continues to see the benefit of streamlining initiatives and the management changes implemented earlier this year. FiscalNote acquired TimeBase, a Sydney-based provider of Australian legislative information for legal professionals, in May 2021 as part of an M&A driven expansion into APAC. FiscalNote has operated TimeBase on a standalone basis, with no cross-sell into FiscalNote's core customers, and represents approximately $1.3 million of FiscalNote's $120.3 million of total GAAP revenue for the 12-month period ended December 31, 2024. FiscalNote will continue to serve customers in the Australia market through its separate PolicyNote platform and related solutions. Importantly, Australian policy and regulatory intelligence will remain a component of the core PolicyNote global data set. Commenting on this transaction, Josh Resnik, FiscalNote's CEO & President, said, 'This divestiture is another clear step in sharpening our strategic focus, improving our capital structure, and accelerating our path to positive free cash flow. We are executing with discipline and streamlining operations while investing in the products and capabilities that matter most to our thousands of customers around the world. With a more focused portfolio and a strengthened balance sheet, we're building a durable foundation for long term, sustainable growth.' Womble Bond Dickinson (US) LLP and King & Wood Mallesons (AUS) are serving as legal counsel to FiscalNote on the transaction. About FiscalNote FiscalNote (NYSE: NOTE) is the leading provider of AI-driven policy and regulatory intelligence solutions. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, Asia, and Australia. To learn more about FiscalNote and its suite of solutions, visit and follow @FiscalNote. About Thomson Reuters Corporation Thomson Reuters (TSX/Nasdaq: TRI) informs the way forward by bringing together the trusted content and technology that people and organizations need to make the right decisions. The company serves professionals across legal, tax, accounting, compliance, government, and media. Its products combine highly specialized software and insights to empower professionals with the data, intelligence, and solutions needed to make informed decisions, and to help institutions in their pursuit of justice, truth, and transparency. Reuters, part of Thomson Reuters, is a world leading provider of trusted journalism and news. For more information, visit Safe Harbor Statement Certain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FiscalNote's future financial or operating performance. For example, statements regarding FiscalNote's financial outlook for future periods, expectations regarding profitability, capital resources and anticipated growth in the industry in which FiscalNote operates are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as 'pro forma,' 'may,' 'should,' 'could,' 'might,' 'plan,' 'possible,' 'project,' 'strive,' 'budget,' 'forecast,' 'expect,' 'intend,' 'will,' 'estimate,' 'anticipate,' 'believe,' 'predict,' 'potential' or 'continue,' or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks, uncertainties, and other important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Factors that may impact such forward-looking statements include: FiscalNote's concentration of revenues from U.S. government agencies, changes in the U.S. government spending priorities, dependence on winning or renewing U.S. government contracts, delay, disruption or unavailability of funding on U.S. government contracts, and the U.S. government's right to modify, delay, curtail or terminate contracts; FiscalNote's ability to successfully execute on its strategy to achieve and sustain organic growth through a focus on its core Policy business, including risks to FiscalNote's ability to develop, enhance, and integrate its existing platforms, products, and services, bring highly useful, reliable, secure and innovative products, product features and services to market, attract new customers, retain existing customers, expand its products and service offerings with existing customers, expand into geographic markets or identify other opportunities for growth; FiscalNote's future capital requirements, as well as its ability to service its repayment obligations and maintain compliance with covenants and restrictions under its existing debt agreements; demand for FiscalNote's services and the drivers of that demand; the impact of cost reduction initiatives undertaken by FiscalNote; risks associated with international operations, including compliance complexity and costs, increased exposure to fluctuations in currency exchange rates, political, social and economic instability, and supply chain disruptions; FiscalNote's ability to introduce new features, integrations, capabilities, and enhancements to its products and services, as well as obtain and maintain accurate, comprehensive, or reliable data to support its products and services; FiscalNote's reliance on third-party systems and data, its ability to integrate such systems and data with its solutions and its potential inability to continue to support integration; FiscalNote's ability to maintain and improve its methods and technologies, and anticipate new methods or technologies, for data collection, organization, and analysis to support its products and services; potential technical disruptions, cyberattacks, security, privacy or data breaches or other technical or security incidents that affect FiscalNote's networks or systems or those of its service providers; competition and competitive pressures in the markets in which FiscalNote operates, including larger well-funded companies shifting their existing business models to become more competitive with FiscalNote; FiscalNote's ability to comply with laws and regulations in connection with selling products and services to U.S. and foreign governments and other highly regulated industries; FiscalNote's ability to retain or recruit key personnel; FiscalNote's ability to adapt its products and services for changes in laws and regulations or public perception, or changes in the enforcement of such laws, relating to artificial intelligence, machine learning, data privacy and government contracts; adverse general economic and market conditions reducing spending on our products and services; the outcome of any known and unknown litigation and regulatory proceedings; FiscalNote's ability to maintain public company-quality internal control over financial reporting; and FiscalNote's ability to protect and maintain its brands and other intellectual property rights. These and other important factors discussed in FiscalNote's SEC filings, including its most recent reports on Forms 10-K and 10-Q, particularly the "Risk Factors" sections of those reports, could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by FiscalNote and its management, are inherently uncertain. Nothing in this press release should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place reliance on forward-looking statements, which speak only as of the date they are made. FiscalNote undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Associated Press
31-03-2025
- Business
- Associated Press
FiscalNote Launches New EU Defense and Space Policy Vertical to Drive Customer Impact and Fuel Growth
WASHINGTON, D.C.--(BUSINESS WIRE)--Mar 31, 2025-- FiscalNote (NYSE: NOTE), the leading provider of AI-driven policy and regulatory intelligence solutions, today announced the launch of its EU Defense and Space Policy vertical. This launch equips users with enhanced visibility into previously unavailable data and insights in critical areas such as space, defense industry, internal security, crisis management, and related strategic initiatives, overlaid with expanded tracking capabilities. Through their use of this powerful new offering, FiscalNote customers will gain a critical edge in anticipating and responding to impactful EU-level policy shifts. With the ongoing war in Ukraine and shifting global alliances, the European Union (EU) is strengthening its response to a rapidly changing geopolitical landscape, aiming to boost its manufacturing capacity and reduce reliance on non-European defense and security systems. The establishment of a new position for the Commissioner for Defence and Space, the ReArm Europe Plan allocating an unprecedented €800 billion for defense spending, and other transformations in EU defense strategy signify a historic move, underscoring the increased urgency and need for actionable policy intelligence. At this pivotal moment in EU policy, FiscalNote's expanded coverage gives customers immediate insight into funding shifts, procurement developments, and strategic policy direction across the EU, helping organizations make more informed decisions, reduce risk, and identify new opportunities in a fast-moving regulatory environment. 'As the EU rapidly transforms its defense strategy, organizations need actionable intelligence to help them shape and define the impact on their organizations,' said Josh Resnik, FiscalNote CEO and President. 'Our new EU Defense and Space Policy vertical gives customers immediate access to the essential insights they need to anticipate changes in funding, shape their competitive positioning, and seize new business opportunities. This enhancement to our EU policy solutions further establishes FiscalNote as an indispensable source for navigating the shifting policy landscape.' About FiscalNote FiscalNote (NYSE: NOTE) is the leading provider of AI-driven policy and regulatory intelligence solutions. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, Asia, and Australia. To learn more about FiscalNote and its suite of solutions, visit and follow @FiscalNote. View source version on CONTACT: Media Yojin Yoon FiscalNote [email protected] Investor Relations Bob Burrows FiscalNote [email protected] KEYWORD: UNITED STATES NORTH AMERICA DISTRICT OF COLUMBIA INDUSTRY KEYWORD: TECHNOLOGY PUBLIC POLICY/GOVERNMENT PROFESSIONAL SERVICES SOFTWARE INTERNET DATA ANALYTICS PUBLIC POLICY DATA MANAGEMENT ARTIFICIAL INTELLIGENCE SOURCE: FiscalNote Copyright Business Wire 2025. PUB: 03/31/2025 07:15 AM/DISC: 03/31/2025 07:15 AM
Associated Press
17-03-2025
- Business
- Associated Press
FiscalNote Expands Policy Intelligence Capabilities of PolicyNote Platform; Launches AI-Powered Presidential Actions Widget
FiscalNote (NYSE: NOTE), the leading provider of AI-driven policy and regulatory intelligence solutions, today announced the launch of its Presidential Actions widget, an advanced new feature within its PolicyNote platform. This latest innovation strengthens FiscalNote's position as a trusted market leader as well as its commitment to product-led growth by delivering near real-time tracking and AI-driven insights into Executive Orders, Proclamations, Memorandums, and Fact Sheets issued by the White House. With intuitive search functionality right in the dashboard that allows users to filter actions by keyword or time frame, the Presidential Actions widget ensures that crucial policy developments are just a click away, providing the information users need, exactly when they need it. Designed to empower businesses, government affairs professionals, and policy leaders, the Presidential Actions widget provides instant access to the latest Executive Orders in their customizable dashboard. By using FiscalNote's proprietary AI Assistant, users can interact with this critical information using natural language and quickly analyze policy implications, understand key takeaways, and anticipate the potential impact of executive decisions on their organization – all in one seamless platform. With the current administration moving quickly to institute transformational policy changes via more frequent use of Executive Orders than any presidency before it, having the ability to track and interpret these directives is more crucial than ever to achieving policy goals and improved outcomes. The Presidential Actions widget is an essential tool for any organization needing to navigate and comply with the complexities of dynamically shifting federal policy. 'With the launch of the Presidential Actions widget in the central PolicyNote dashboard, we continue to enhance our robust data and proprietary analysis, leveraging an engaging and powerful user experience in PolicyNote to push the boundaries of AI-powered policy intelligence, giving our customers a decisive advantage in monitoring, interpreting, and responding to rapidly evolving government actions,' said Josh Resnik, FiscalNote CEO and President. 'By combining near real-time tracking of these critical Presidential actions with AI-driven analysis, we're not only enhancing agility, transparency, and accessibility but also reinforcing our leadership in delivering innovative, product-led solutions that drive better decision-making. In an era when executive orders can shape industries overnight, organizations can use PolicyNote to cut through the noise, act decisively, and maintain a competitive edge.' Responding to positive user feedback on PolicyNote, FiscalNote continues to innovate and enhance its new platform, which will advance product-led sales and growth by equipping clients with intelligent, technology-driven solutions that streamline workflow, improve efficiency, and provide unmatched access to legislative and regulatory intelligence. To learn more about the Presidential Actions widget, visit this link. FiscalNote (NYSE: NOTE) is the leading provider of AI-driven policy and regulatory intelligence solutions. By uniquely combining proprietary AI technology, comprehensive data, and decades of trusted analysis, FiscalNote helps customers efficiently manage political and business risk. Since 2013, FiscalNote has pioneered solutions that deliver critical insights, enabling effective decision making and giving organizations the competitive edge they need. Home to PolicyNote, CQ, Roll Call, VoterVoice, and many other industry-leading products and brands, FiscalNote serves thousands of customers worldwide with global offices in North America, Europe, Asia, and Australia. To learn more about FiscalNote and its suite of solutions, visit and follow @FiscalNote. Yojin Yoon FiscalNote [email protected] Relations Bob Burrows FiscalNote [email protected] SOURCE: FiscalNote Copyright Business Wire 2025. PUB: 03/17/2025 07:01 AM/DISC: 03/17/2025 07:01 AM
