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WASHINGTON - FiscalNote Holdings, Inc. (NYSE: NOTE), a leading AI-driven policy and regulatory intelligence solutions provider with a current market capitalization of approximately $101 million, has entered into a definitive agreement to sell its Australian subsidiary, TimeBase, to Thomson Reuters Corporation (TSX/Nasdaq: TRI) for $6.5 million. The deal is subject to antitrust clearance in Australia and customary closing conditions, with the transaction expected to close promptly afterward. According to InvestingPro data, FiscalNote’s stock has experienced significant volatility, declining over 53% in the past year.
The divestiture of TimeBase, which FiscalNote acquired in May 2021, will contribute to FiscalNote’s strategic focus and financial goals. The proceeds from the sale will be used to reduce the company’s senior term loan balance. TimeBase, a Sydney-based legislative information provider for legal professionals, has been operating independently within FiscalNote, contributing approximately $1.3 million to the company’s $120.3 million total GAAP revenue for the 12-month period ending December 31, 2024.
Despite the financial implications of this transaction, FiscalNote has reaffirmed its financial forecast for the full year 2025, with expected total revenues between $94 million and $100 million, and adjusted EBITDA ranging from $10 million to $12 million. This reaffirmation reflects FiscalNote’s confidence in its operating plan and its ability to execute amid market volatility. The company anticipates an acceleration in performance in the latter half of the year, driven by investments in its core policy offerings, including the launch and enhancement of its PolicyNote platform. InvestingPro analysis reveals impressive gross profit margins of 79%, though analysts anticipate a sales decline in the current year. Get access to 12 more exclusive InvestingPro Tips and comprehensive financial analysis through the Pro Research Report.
CEO & President Josh Resnik commented on the divestiture, stating, "This divestiture is another clear step in sharpening our strategic focus, improving our capital structure, and accelerating our path to positive free cash flow." He emphasized the company’s disciplined execution, operational streamlining, and investment in products and capabilities critical to their global customer base.
FiscalNote will continue to serve the Australian market through its PolicyNote platform and related solutions, ensuring that Australian policy and regulatory intelligence remains part of the core global data set offered by the company.
Legal counsel for the transaction is provided by Womble Bond Dickinson (US) LLP and King & Wood Mallesons (AUS).
The information in this article is based on a press release statement from FiscalNote.
In other recent news, FiscalNote Holdings reported its fourth-quarter 2024 earnings, revealing an earnings per share loss of $0.10, which was below the consensus estimate of a $0.08 loss. The company also reported revenue of $27.06 million, falling short of the expected $30.59 million. Despite these results, FiscalNote achieved its first full year of positive adjusted EBITDA at $9.8 million. Additionally, FiscalNote completed the sale of its Global Intelligence businesses, Oxford Analytica and Dragonfly, to Dow Jones for $40 million. This transaction is expected to reduce the company’s senior term debt by 30.6%, leaving a balance of approximately $61.5 million. In a strategic move, FiscalNote launched its EU Defense and Space Policy vertical to provide insights into the European Union’s evolving defense and space policies. Furthermore, the company announced an amendment to its financial agreements, extending the maturity date of its Subordinated Convertible Promissory Notes and allowing for potential equity conversion. These developments reflect FiscalNote’s ongoing efforts to streamline operations, reduce debt, and enhance its product offerings.
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