FiscalNote Holdings, Inc. Annual Report - How They Did This Year

I’ve put together this guide to help you understand FiscalNote’s performance this year. Instead of reading hundreds of pages of legal filings, you can use this summary to see the company’s health and where it is headed.

1. What does this company do?

FiscalNote is a software company that acts as a high-tech research assistant. It helps organizations track government regulations, policy changes, and global news. Its main platform, PolicyNote, uses AI to gather data from over 20,000 global sources. The company serves many large clients, including 46 of the Fortune 100, helping them manage political and regulatory risks.

2. Financial Performance: The "Slimming Down" Phase

FiscalNote is moving away from buying other companies to focus on efficiency and profit.

• Revenue: The company reported $95.4 million in revenue for 2025, a 20.7% decrease from the $120.3 million reported in 2024.
• Strategic Shifts: The revenue change reflects the sale of business units like Oxford Analytica and Dragonfly. These divestitures were designed to shed low-profit services and reduce annual operating costs by approximately $35 million.
• Recurring Revenue: About 93% of their revenue comes from recurring subscriptions. This model provides predictable income, supported by a 95% retention rate among their core customer base.

3. Major Wins and Challenges

• Operational Efficiency: After acquiring 16 companies between 2017 and 2023, the business underwent a significant restructuring. The company reduced its staff from 800 people in 2022 to 540 by the end of 2025. They are now consolidating various products into the unified PolicyNote system to drive cross-selling.
• The Tech Pivot: FiscalNote is evolving from a tracking service to an active intelligence provider. They are launching tools that allow clients to integrate regulatory data directly into internal systems and are investing in predictive analytics to help clients estimate the financial impact of new laws.

4. Key Risks

• Dilution: The company carries significant debt and has many outstanding employee stock options. Issuing additional shares to manage debt or raise capital will reduce the ownership percentage of current shareholders.
• NYSE Listing: The stock price has faced pressure to remain above the $1.00 minimum required by the New York Stock Exchange. A delisting could trigger debt covenants that force the immediate repayment of loans, for which the company currently lacks sufficient cash.
• AI Competition: The rise of general AI tools presents a competitive threat. If lower-cost alternatives become sufficiently effective at summarizing regulations, clients may choose to move away from premium specialized services.

5. Future Outlook

FiscalNote is currently focused on proving its ability to operate as a profitable entity. Management’s strategy centers on growing through new AI features sold to existing clients. The company’s financial stability depends on its ability to generate sufficient cash flow to meet debt obligations. Investors should view this as a high-risk, high-reward turnaround situation where success hinges on the execution of their AI roadmap and the stabilization of their balance sheet.

Investor Takeaway: When deciding whether to invest, focus on the company's ability to maintain its 95% retention rate while successfully transitioning to its new, leaner AI-focused business model. Keep a close eye on their cash position relative to their debt obligations and their progress in maintaining compliance with NYSE listing requirements.