Fiscalnote Holdings Inc ((NOTE)) has held its Q3 earnings call. Read on for the main highlights of the call.
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During the recent earnings call, FiscalNote Holdings Inc. conveyed a mixed sentiment. While the company showcased positive momentum in corporate sales and product innovation, challenges such as revenue declines due to divestitures and federal sector volatility were also highlighted. Cost management efforts yielded positive results, yet increased general and administrative expenses and a decline in annual recurring revenue (ARR) were areas of concern.
Adjusted EBITDA Exceeds Guidance
FiscalNote Holdings Inc. reported an adjusted EBITDA of $2.2 million for the third quarter of 2025, surpassing guidance. This marks the fifth consecutive quarter where adjusted EBITDA margins have been at or above 10%, demonstrating the company’s ability to maintain profitability despite external challenges.
Corporate Sales Momentum
The company experienced a significant improvement in win rates among enterprise clients, with an increase of 400 basis points compared to the second quarter. Corporate multiyear contracts now account for 50% of new logo ARR, a substantial rise from 20% in early 2024, indicating strong corporate sales momentum.
Product Innovation and Enhancements
In 2025, FiscalNote launched 35 major enhancements to its PolicyNote platform, including AI-powered features such as legislative drafting and Bill Comparison. These innovations are expected to drive further engagement and value for clients.
Cost Management and Operating Efficiency
The company achieved an 8% decrease in operating expenses on a pro forma basis, attributed to continued cost discipline and operating efficiency. This reduction highlights FiscalNote’s commitment to managing costs effectively.
Revenue Impact from Divestitures
FiscalNote’s revenue for the third quarter of 2025 was $7 million lower than the previous year, primarily due to divestitures of several business units in 2024 and 2025. This strategic decision has impacted short-term revenue but may align with long-term objectives.
Federal Sector Volatility
Ongoing volatility in the federal sector, including disruptions from an extended government shutdown, negatively impacted FiscalNote’s revenue. This sector’s unpredictability remains a challenge for the company.
Decline in Annual Recurring Revenue (ARR)
The company reported an ARR of $84.8 million, down from $92.2 million in 2024 on a pro forma basis, reflecting a decline of $7.4 million. This decrease underscores the need for strategies to stabilize and grow recurring revenue streams.
Increased G&A Expenses
General and administrative expenses rose by $3.3 million, or 31%, due to noncash charges and cash costs related to refinancing activities and other nonrecurring costs. This increase highlights areas where cost management can be improved.
Forward-Looking Guidance
FiscalNote Holdings Inc. provided forward-looking guidance that aligns with previous expectations. The company projects full-year revenue to be between $95 million and $96 million, with adjusted EBITDA expected to be around $10 million. The improvement in win rates among enterprise clients and the shift towards corporate multiyear contracts are anticipated to enhance revenue visibility and retention by 2026.
In summary, FiscalNote Holdings Inc.’s earnings call reflected a balanced sentiment with both positive developments and challenges. The company demonstrated strong corporate sales momentum and product innovation, yet faced revenue declines and increased expenses. Looking ahead, FiscalNote’s guidance suggests a stable outlook with potential for growth, particularly in corporate segments.