FiscalNote Q4 revenue falls, announces workforce reduction

Reuters03-20
FiscalNote Q4 revenue falls, announces workforce reduction 

Overview

  • US policy intelligence provider's Q4 revenue fell 25% yr/yr, in line with company's guidance

  • Adjusted EBITDA for Q4 beat analyst expectations, despite a 25% yr/yr decline

  • Company to cut workforce by about 25% as part of AI-driven transformation

Outlook

  • FiscalNote sees 2026 revenue between $80 mln and $83 mln

  • Company expects 2026 Adjusted EBITDA of $14 mln to $16 mln

  • FiscalNote anticipates positive Free Cash Flow by end of Q1 2027

Result Drivers

  • DIVESTITURES IMPACT - Co said revenue decline was primarily due to divestitures of Aicel Technologies, Oxford Analytica, Dragonfly Intelligence, and TimeBase

  • CUSTOMER ENGAGEMENT ISSUES - Co cited execution challenges, customer engagement issues in legacy products, and instability in the US federal sector as drivers of pro forma ARR decline

  • PLATFORM MIGRATION - Co completed migration of all customers to PolicyNote platform, which it says has stronger usage and retention metrics

Company press release: ID:nBw1k9ckQa

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Revenue

$22.20 mln

Q4 Net Income

-$22.90 mln

Q4 Adjusted EBITDA

Beat

$2.50 mln

$2.05 mln (3 Analysts)

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for FiscalNote Holdings Inc is $8.50, about 794.7% above its March 18 closing price of $0.95

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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