FiscalNote authorizes potential reverse stock split to maintain NYSE listing

Published 29/07/2025, 12:22
FiscalNote authorizes potential reverse stock split to maintain NYSE listing

WASHINGTON - FiscalNote Holdings, Inc. (NYSE:NOTE), currently trading at $0.79 and down over 54% in the past year according to InvestingPro data, announced Tuesday it has filed a preliminary information statement with the Securities and Exchange Commission authorizing its board to implement a reverse stock split at a ratio between 1:2 and 1:15, if necessary.

The AI-driven policy intelligence company, with a market capitalization of approximately $125 million, is taking this step to regain compliance with the New York Stock Exchange’s continued listing requirement of maintaining an average closing share price of at least $1.00 over 30 consecutive trading days. FiscalNote faces an October 10, 2025 deadline to meet this standard.

According to the filing, shareholders controlling over 67% of the company’s voting power have already approved the potential action through written consent. The company stated it plans to regain compliance either through organic stock price recovery or the reverse split if needed.

If implemented, the reverse split would not affect any shareholder’s percentage ownership or voting power, the company noted in its press release statement. The board will determine the final ratio if it proceeds with filing an amendment to the company’s certificate of incorporation.

FiscalNote cited potential benefits of a reverse split based on market analysis, including improved investor perception, continued NYSE listing compliance, and potentially tighter bid-ask spreads that could enhance liquidity. InvestingPro analysis reveals the company operates with a significant debt burden, with a debt-to-equity ratio of 1.45, though it maintains impressive gross profit margins of 78%.

The company cautioned that completion of the proposed reverse stock split remains subject to market and other conditions, with no assurance it will be completed or achieve its intended effects. The board reserves the right not to proceed if it determines the action is no longer in the best interests of the company and shareholders. According to InvestingPro, analysts have set price targets ranging from $1.50 to $4.50, suggesting potential upside despite current challenges. Subscribers can access 12 additional ProTips and comprehensive financial analysis in the Pro Research Report.

Shareholders can obtain the preliminary proxy statement and other company filings through the SEC website or FiscalNote’s investor relations page.

In other recent news, FiscalNote Holdings reported its first-quarter 2025 earnings, surpassing expectations with an earnings per share (EPS) of -$0.03, compared to the forecasted -$0.08. The company’s revenue for the quarter reached $27.5 million, exceeding its guidance range of $26 million to $27 million, though it was down from the previous year due to divestitures. In a strategic move, FiscalNote completed the sale of its Australian subsidiary, TimeBase, to Thomson Reuters for $6.5 million. This divestiture aligns with FiscalNote’s focus on its core policy and regulatory intelligence business. Additionally, FiscalNote announced that its PolicyNote platform has exceeded its legacy system in daily active users, highlighting significant customer adoption. The platform, launched in January 2025, has been praised for its intuitive design and efficient onboarding process. Users are reportedly creating AI-powered alerts 94% faster with PolicyNote compared to the previous system. These developments reflect FiscalNote’s ongoing efforts to optimize its offerings and strengthen its market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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