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Introduction & Market Context
FiscalNote Holdings Inc (NYSE:NOTE) presented its Q2 2025 results on August 7, 2025, highlighting its AI-driven policy intelligence platform and strategic initiatives aimed at improving profitability despite revenue challenges. The company, which provides subscription-based access to policy data and insights, reported Q2 revenue of $23.3 million, exceeding guidance but showing a decline from the $27.5 million reported in Q1 2025.
The presentation emphasized FiscalNote’s position in a large addressable market, with the Enterprise Information Solutions market estimated at $314 billion and the Legal & Regulatory Information market at $40 billion. The company highlighted several trends driving demand for its solutions, including increasingly complex regulations and the growing adoption of AI technology.
As shown in the following market opportunity slide:
Quarterly Performance Highlights
FiscalNote reported Q2 2025 revenue of $23.3 million, above the company’s guidance midpoint. Annual Recurring Revenue (ARR) stood at $85.9 million, showing a decline from the $88 million reported in Q1 2025. However, the company achieved Adjusted EBITDA of $2.8 million, exceeding guidance, with a cash position of $39.2 million at quarter-end.
The company’s financial snapshot reveals its performance metrics for the quarter:
FiscalNote maintains a diverse customer base of over 3,600 clients across various sectors, with subscription revenue accounting for 92% of total revenue. The company serves 45 of the Fortune 100 companies and provides legislative and regulatory monitoring in over 100 countries. Its customer base is distributed across private sector (~49%), public sector (~21%), and non-profit/NGO (~30%) segments.
The following slide illustrates the company’s global customer distribution:
Strategic Initiatives
A central focus of FiscalNote’s strategy is its AI-driven platform, PolicyNote, launched in January 2025. The platform combines global data with proprietary insights, featuring AI-powered summaries, chat-based search and alerts, custom dashboards, and bill Q&A functionality. The company emphasized that its specialized AI for policy applications differentiates it from generic large language models (LLMs).
The PolicyNote platform interface demonstrates these capabilities:
FiscalNote reported positive indicators of the platform’s effectiveness, including higher user engagement compared to legacy platforms, increased inbound leads, and improved win rates. The company stated that new customer acquisition rates more than doubled, with win rates up 400 basis points.
The following metrics demonstrate how the company is tracking progress on its new platform:
The presentation highlighted FiscalNote’s ability to rapidly develop and deploy new features, citing the example of its Tariff Tracker, which was launched just two weeks after a presidential tariff announcement and generated $1 million in pipeline opportunities.
The timeline of this rapid product development is illustrated here:
Financial Outlook
FiscalNote reaffirmed its full-year 2025 guidance, projecting total revenue of $94-100 million and Adjusted EBITDA of $10-12 million. For Q3 2025, the company expects revenue of $22-23 million with Adjusted EBITDA of approximately $2 million. Management expressed confidence that ARR growth would resume in the second half of 2025.
The company also announced a significant balance sheet realignment, including refinancing its senior debt and restructuring subordinated debt, extending maturity to 2029. This restructuring aims to provide long-term runway and greater financial flexibility.
Forward-Looking Statements
FiscalNote outlined five key priorities for 2025 and beyond: implementing a shift to product-led growth, exercising operational discipline, optimizing costs and rationalizing its portfolio, de-leveraging its balance sheet, and positioning for future growth.
The company’s key takeaways summarize these priorities:
Historical financial trends show improvement in trailing twelve-month Adjusted EBITDA and Free Cash Flow, though the company continues to face challenges in returning to revenue growth after recent divestitures. Management emphasized that AI will serve as an accelerant for future growth, leveraging the company’s 11 years of experience in AI-powered information services.
Conclusion
FiscalNote’s Q2 2025 presentation reveals a company in transition, focusing on financial stability and AI-driven innovation while managing revenue challenges. The reaffirmed guidance suggests management confidence in the company’s strategic direction despite quarter-over-quarter revenue decline.
The stock closed at $0.63 on August 7, 2025, down 2.47% for the day, reflecting ongoing investor caution. With a 52-week range of $0.48 to $2.03, FiscalNote continues to trade near the lower end of its range as it works to demonstrate that its AI-driven strategy and financial restructuring will translate into sustainable growth and profitability.
Full presentation:
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