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Introduction & Market Context
FiscalNote Holdings (NYSE:NOTE) recently presented its Q1 2025 results, highlighting a strategic shift toward product-led growth and AI-powered solutions while continuing to improve profitability despite revenue challenges. The company, which provides subscription-based access to policy data and insights via an AI-driven SaaS platform, has completed seven consecutive quarters of positive adjusted EBITDA while significantly reducing its debt burden.
The company’s stock has shown positive momentum following the earnings announcement, with shares rising 5.73% to close at $0.683 on May 15, 2025, and gaining an additional 1.9% in premarket trading the following day. Despite this recent uptick, FiscalNote’s shares remain well below their 52-week high of $2.07.
Quarterly Performance Highlights
FiscalNote reported Q1 2025 revenue of $27.5 million, exceeding its guidance range of $26-27 million but down from $32.1 million in Q1 2024. The company attributed this decline primarily to the divestiture of non-core businesses, including Oxford Analytica and Dragonfly Intelligence. Despite lower revenue, FiscalNote posted a significantly reduced net loss of $4.3 million compared to $50.6 million in the same quarter last year.
As shown in the following financial summary from the company’s presentation:
The company’s adjusted EBITDA showed marked improvement, reaching $2.8 million (10% margin) compared to $1.2 million (4% margin) in Q1 2024. This represents the seventh consecutive quarter of positive adjusted EBITDA, demonstrating FiscalNote’s focus on operational efficiency and profitability.
The trailing twelve months EBITDA chart clearly illustrates this positive trend:
FiscalNote has also made significant progress in strengthening its balance sheet, reducing its senior term loan from $161.4 million in Q4 2023 to $61.8 million in Q1 2025. This debt reduction has lowered quarterly interest expenses from $5.5 million to $2.7 million, further supporting the company’s path to sustainable profitability.
Strategic Initiatives
FiscalNote’s presentation emphasized three key strategic focus areas for long-term, sustainable growth: product-centric growth, expanding profitability, and strengthening capital structure. The company has been rationalizing its product portfolio by divesting non-core businesses while investing in AI-powered solutions.
The company outlined its strategic roadmap as follows:
A centerpiece of FiscalNote’s product strategy is the recent launch of PolicyNote, an AI-powered policy intelligence platform that combines data, analytics, and workflow tools to drive actionable insights. The platform leverages specialized AI to help customers identify opportunities, minimize costs, and mitigate risks related to policy changes.
The following image showcases the PolicyNote platform interface:
The company highlighted how PolicyNote’s specialized AI capabilities can provide contextual insights for policy monitoring:
Competitive Industry Position
FiscalNote positions itself in a large addressable market, with the Enterprise Information Solutions TAM estimated at $314 billion and the Legal & Regulatory Information TAM at $40 billion. The company serves over 4,100 customers across more than 80 countries, with subscription revenue accounting for 92% of total revenue.
The company’s customer base spans multiple sectors, with the following breakdown of target segments:
FiscalNote differentiates itself through a combination of AI-powered technology, global policy expertise, and comprehensive data. The company’s proprietary infrastructure and expert intelligence, developed over more than a decade, provide a competitive advantage in delivering actionable policy insights.
The following diagram illustrates the company’s data pipeline and processing capabilities:
Forward-Looking Statements
For the full year 2025, FiscalNote reaffirmed its guidance of:
- Total (EPA:TTEF) revenues between $94 million and $100 million
- Adjusted EBITDA between $10 million and $12 million
For Q2 2025, the company expects:
- Total revenues between $22 million and $24 million
- Adjusted EBITDA of approximately $2 million
As shown in the company’s financial forecast slide:
The guidance takes into account several factors, including ongoing cost-saving initiatives, reduced debt service costs, the migration to PolicyNote, current market volatility, and potential impacts from changes in the federal government.
During the earnings call, CEO Josh Resnick expressed confidence in the company’s execution, stating, "We are reaffirming our full year guidance, even notwithstanding our latest asset sale, because we see clear progress and have strong conviction in our execution."
Executive Summary
FiscalNote’s Q1 2025 presentation demonstrates a company in transition, focusing on profitability and strategic portfolio optimization while investing in AI-powered solutions for future growth. The company has made significant progress in reducing debt and improving adjusted EBITDA margins, though revenue has declined due to divestitures of non-core businesses.
The launch of PolicyNote represents a key element of FiscalNote’s product-led growth strategy, leveraging AI to deliver actionable policy insights to customers across the private sector, public sector, and non-profit organizations. While near-term revenue growth remains challenged, the company’s focus on operational discipline and margin expansion positions it for potential sustainable growth in the future.
Investors should monitor FiscalNote’s ability to execute on its strategic initiatives, particularly the adoption of PolicyNote and the conversion of its growing pipeline into tangible results. The company’s progress toward positive free cash flow and continued debt reduction will be critical metrics to watch in upcoming quarters.
Full presentation:
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