Fiscalnote Holdings Inc ((NOTE)) has conducted its Q3 earnings call. Continue reading for the key takeaways from the meeting.
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During the latest earnings call, FiscalNote Holdings Inc. expressed a varied outlook. Although the company demonstrated favorable progress in corporate sales and product development, issues like revenue drops from divestitures and instability in the federal sector were also mentioned. Measures taken to control costs showed beneficial outcomes, but rising general and administrative expenses and a decrease in annual recurring revenue (ARR) remained worrying points.
Adjusted EBITDA Exceeds Guidance
FiscalNote Holdings Inc. announced an adjusted EBITDA of $2.2 million for the third quarter of 2025, exceeding expectations. This is the fifth straight quarter in which adjusted EBITDA margins have remained at or above 10%, highlighting the company’s capacity to sustain profitability amid external difficulties.
Corporate Sales Momentum
The company saw a major boost in win rates with enterprise clients, rising by 400 basis points from the second quarter. Corporate multiyear agreements now make up 50% of new customer ARR, a big jump from 20% in early 2024, showing solid corporate sales growth.
Product Innovation and Enhancements
In 2025, FiscalNote introduced 35 significant updates to its PolicyNote platform, featuring AI-driven tools like legislative drafting and Bill Comparison. These advancements are anticipated to increase client interaction and provide greater value.
Project Cost Control and Operational Effectiveness
The organization saw an 8% drop in operational costs on a pro forma basis, due to ongoing cost control and improved operational effectiveness. This decline demonstrates FiscalNote’s dedication to handling expenses efficiently.
Revenue Impact from Divestitures
FiscalNote reported a revenue drop of $7 million in the third quarter of 2025 compared to the prior year, mainly because of the sale of multiple business segments in 2024 and 2025. This move has affected immediate earnings but could support future goals.
Federal Sector Volatility
Persistent instability within the federal sector, such as interruptions caused by a prolonged government closure, had a negative effect on FiscalNote’s income. The uncertainty in this sector continues to pose difficulties for the company.
Drop in Annual Recurring Revenue (ARR)
The organization disclosed an annual recurring revenue (ARR) of $84.8 million, a reduction from $92.2 million in 2024 when adjusted on a pro forma basis, indicating a drop of $7.4 million. This decline highlights the importance of implementing approaches to maintain and expand ongoing revenue sources.
Increased G&A Expenses
General and administrative expenses increased by $3.3 million, which represents a 31% rise, attributed to noncash charges and cash expenditures associated with refinancing efforts and additional one-time expenses. This growth underscores opportunities for better cost control.
Forward-Looking Guidance
FiscalNote Holdings Inc. shared forward-looking statements that match earlier predictions. The firm expects total annual revenue to range from $95 million to $96 million, with adjusted EBITDA projected to be approximately $10 million. The increase in success rates with large corporate clients and the move toward multi-year contracts are expected to boost revenue predictability and client retention by 2026.
In conclusion, the earnings call for FiscalNote Holdings Inc. showed a mixed perspective, highlighting both favorable progress and obstacles. The company exhibited robust corporate sales growth and new product advancements, but also encountered revenue drops and higher costs. Moving forward, FiscalNote’s projections indicate a steady outlook with opportunities for expansion, especially within the corporate sector.
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