Fiscalnote Holdings Inc.
08/10/2026 | Press release | Distributed by Public on 08/10/2026 15:00
FiscalNote Reports Second Quarter 2026 Financial Results (Form 8-K)
FiscalNote Reports Second Quarter 2026 Financial Results
Total Revenue In Line with Guidance; Adjusted EBITDA Slightly Below Guidance; Establishes Q3 2026 Forecast and Revises FY26 Guidance
Company To Host Conference Call Today at 5:00 PM ET
WASHINGTON, D. C. - August 10, 2026 - FiscalNote Holdings, Inc. (OTCID: NOTE) ("FiscalNote" or the "Company"), a global leader in AI-driven policy and regulatory intelligence, today reported financial results for the second quarter ended June 30, 2026.
The Company reported Q2 2026 revenues of $19.6 million, in line with guidance of $19.5 to $20.5 million, and adjusted EBITDA(1) of $2.3 million, $0.2 million below guidance of $2.5 million. Quarterly net revenue retention improved to 98% from 89%(3) in the first quarter, as platform migration and retention efforts take hold.
The Company continued to strengthen its operating model, reducing its cost base and improving operating leverage, supported by the workforce transformation initiated in March. It continues to execute on its broader operational transformation through AI deployment, changes to team structures, insourcing of third-party spend, and other streamlining initiatives.
FiscalNote also continued to see early adoption in its agentic API product offerings, including new licenses for its PolicyNote MCP APIs with Siemens, a multinational industrial and technology conglomerate, and a globally recognized U.S. technology and cloud infrastructure company.
Commenting on the quarterly results, Key Compton, CEO and President of FiscalNote, said, "We came in $0.2 million light on adjusted EBITDA, but net revenue retention improved nine points sequentially to 98%, marking an important stabilization in our core business. We also continued to improve our operating efficiency. Looking forward, we will continue to hold the line on operating discipline while also investing behind the products our customers are pulling us toward, including the agentic PolicyNote MCP API solutions that Siemens and other global enterprises licensed this quarter."
Second Quarter 2026 Financial Highlights(2)
|
(Unaudited) |
|||||||||||||||||
|
Three Months Ended June 30, |
|||||||||||||||||
|
($ in millions) |
2026 |
2025 |
% Change |
||||||||||||||
|
Total Revenues |
$ |
19.6 |
$ |
23.3 |
(16 |
) |
% |
||||||||||
|
Subscription Revenue as % of Total Revenues |
96 |
% |
92 |
% |
400 |
bps |
|||||||||||
|
Gross Profit |
$ |
15.6 |
$ |
18.3 |
(15 |
) |
% |
||||||||||
|
Gross Margin |
80 |
% |
79 |
% |
100 |
bps |
|||||||||||
|
Adjusted Gross Profit (1) |
$ |
17.3 |
$ |
20.1 |
(14 |
) |
% |
||||||||||
|
Adjusted Gross Margin (1) |
88 |
% |
86 |
% |
200 |
bps |
|||||||||||
|
Net Loss |
$ |
(27.8 |
) |
$ |
(13.3 |
) |
* |
||||||||||
|
Adjusted EBITDA (1) |
$ |
2.3 |
$ |
2.8 |
(18 |
) |
% |
||||||||||
|
Adjusted EBITDA Margin (1) |
12 |
% |
12 |
% |
- |
bps |
|||||||||||
|
Cash and Cash Equivalents |
$ |
20.6 |
$ |
39.2 |
|||||||||||||
|
bps - Basis Points |
|||||||||||||||||
|
* - percentage change is greater than +/- 100% |
|||||||||||||||||
Note: All amounts for the three months ended June 30, 2025 include contributions from TimeBase, divested on July 1, 2025.
Second Quarter 2026 and Recent Operational Highlights
•
Appointed Key Compton, a FiscalNote board member since 2021, as President and Chief Executive Officer in June 2026 to lead the Company's return to growth.
•
Improved quarterly net revenue retention to 98%, up from 89%(3) in the first quarter, as PolicyNote engagement and post-migration retention continued to outperform the Company's legacy platforms.
•
Continued to expand relationships within our existing customer base through enterprise upsells and cross-sells, reflecting sustained demand for policy intelligence solutions.
•
Launched an expansion of the PolicyNote API to add district matching capability, enabling organizations to power grassroots advocacy at scale with real-time access to federal, state, and local legislative district data..
•
Deepened adoption of the PolicyNote API and its native support for the Model Context Protocol (MCP), enabling enterprises to embed FiscalNote's proprietary legislative and regulatory intelligence directly into their AI agents and internal workflows.
Second Quarter 2026 Financial Performance
Revenue(2)
|
(Unaudited) |
|||||||||||||
|
Three Months Ended June 30, |
|||||||||||||
|
($ in millions) |
2026 |
2025 |
% Change |
||||||||||
|
Subscription revenue |
$ |
18.8 |
$ |
21.4 |
(12 |
) |
% |
||||||
|
Advisory, advertising, and other revenue |
0.8 |
1.9 |
(58 |
) |
% |
||||||||
|
Total revenues |
$ |
19.6 |
$ |
23.3 |
(16 |
) |
% |
||||||
For Q2 2026, subscription revenue declined $2.6 million, or 12%, versus prior year. On a pro forma basis(5), excluding the sale of TimeBase, Q2 2026 subscription revenue declined $2.3 million, or 11%, reflecting the trends in ARR and NRR discussed under "Key Performance Indicators (KPIs)" below.
For Q2 2026, non-subscription revenue declined $1.1 million, or 59%, versus prior year, due primarily to a reduction in advertising and event revenue which is non-recurring in nature.
Key Performance Indicators (KPIs)(2)(3)(5)
|
As of June 30, |
||||||||||||
|
($ in millions) |
2026 |
2025 |
% Change |
|||||||||
|
Annual Recurring Revenue (ARR) |
$ |
74.9 |
$ |
85.9 |
(13 |
)% |
||||||
|
Pro Forma ARR(3)(5) |
$ |
74.9 |
$ |
84.7 |
(12 |
)% |
||||||
As of June 30, 2026, ARR declined $11.0 million, or approximately 13%, on an as reported basis(3), and ARR declined $9.8 million, or approximately 12% on a pro forma basis.(5) Q2 2026 quarterly net revenue retention (NRR) was 98%(3), up from 89% in the first quarter; on a trailing twelve month basis, NRR was 81%(3)(5).
The improvement in quarterly NRR reflects strengthening post-migration retention and engagement on PolicyNote relative to the Company's legacy platforms. Broader macroeconomic and geopolitical pressures, together with continued caution in the federal and broader public sector, continued to weigh on portions of the customer base, contributing to elongated sales cycles. The Company expects its trailing retention metrics to improve as recent quarterly trends carry forward.
Operating Expenses(2)
|
(Unaudited) |
||||||||||||
|
Three Months Ended June 30, |
||||||||||||
|
($ in millions) |
2026 |
2025 |
% Change |
|||||||||
|
Cost of revenues, including amortization |
$ |
4.0 |
$ |
4.9 |
(20 |
)% |
||||||
|
Research and development |
1.6 |
2.3 |
(30 |
)% |
||||||||
|
Sales and marketing |
4.5 |
6.7 |
(33 |
)% |
||||||||
|
Editorial |
3.4 |
3.5 |
(2 |
)% |
||||||||
|
General and administrative |
9.2 |
11.4 |
(19 |
)% |
||||||||
|
Amortization of intangible assets |
1.9 |
1.9 |
(2 |
)% |
||||||||
|
Goodwill impairment |
19.1 |
- |
* |
|||||||||
|
Total operating expenses |
$ |
43.7 |
$ |
30.7 |
42 |
% |
||||||
|
* - percentage change is greater than +/- 100% |
||||||||||||
Total operating expenses increased $13.0 million, or 42%, versus prior year, due primarily to the non-cash goodwill impairment charge recorded in the second quarter of 2026 partially offset by the impact of the previously announced divestitures, ongoing efficiency measures and operating discipline initiatives, and the elimination of costs associated with sunset products.
Q2 2026 total operating expenses declined $2.4 million, or 12%, excluding amortization expense, stock-based compensation, the impact of the previously announced divestitures, transaction-related costs, severance, goodwill impairment, and other non-cash charges.
2026 Financial Guidance
The Company updated its financial forecast for the full year 2026 and issued its forecast for the third quarter of 2026. Both forecasts reflect management's expectations based on the most recent information available.
Full Year 2026
|
($ in millions) |
Current Forecast |
Action |
Previous Forecast |
|||
|
Total revenues |
$75 to $78 |
Updated |
$80 to $83 |
|||
|
Adjusted EBITDA(4) |
$9 to $11 |
Updated |
$14 to $16 |
The revision to the full year 2026 forecast reflects continued softness in the federal and broader public sector, a cautious private-sector spending environment, and lower non-subscription revenue, partially offset by continued cost discipline and operating efficiencies.
3Q 2026
|
($ in millions) |
Initial Forecast |
|
|
Total revenues |
$19 to $20 |
|
|
Adjusted EBITDA(4) |
~$3.5 |
The Company expects restructuring actions taken in the first half to fully benefit results in the back half, driving a meaningful EBITDA ramp and supporting full-year expectations.
Commenting on the forecast, Jon Slabaugh, FiscalNote CFO, said, "We welcome the arrival of Key Compton and with this we have reset our full year outlook this quarter to reflect the current revenue environment, while continuing to operate from a leaner cost structure that strengthens our operating leverage. Our immediate priorities are maintaining capital discipline as we work to return the Company to growth and reach free cash flow positive."
Company Listing and Strategic Review
The Company's Board of Directors along with its advisors, is continuing to review the Company's ongoing plans and evaluate all strategic value-maximizing options available to the Company, including evaluation of potential further divestitures of non-core assets. There can be no assurance that the strategic review will result in any transaction or other outcome. The Company has not set a timetable for completion of the review and does not intend to disclose developments or provide updates on the progress or status of the review unless and/or until it deems further disclosure is appropriate or required.
Conference Call and Webcast
Company management will host a conference call at 5:00 p.m. ET today, Monday, August 10, 2026, to discuss these financial results.
LIVE
•
To listen to the conference call, please register through the following event weblink: https://events.q4inc.com/attendee/751513076.
Footnotes
(1)
Non-GAAP measure. See "Non-GAAP Financial Measures" and the reconciliation tables for the definitions and reconciliations of these non-GAAP financial measures to the most closely related GAAP financial measures.
(2)
All financial information incorporated within this press release is unaudited.
(3)
"Annual Recurring Revenue" and "Net Revenue Retention" are key performance indicators (KPIs). See "Key Performance Indicators" for the definitions and important disclosures related to these measures.
(4)
Because of the variability of items impacting net income and the unpredictability of future events, management is unable to reconcile without unreasonable effort the Company's forecasted Adjusted EBITDA or Free Cash Flow to a comparable GAAP measure. The unavailable information could have a significant impact on the non-GAAP measures.
(5)
Pro forma subscription revenue, ARR and NRR adjusts the applicable prior period to exclude the contribution of TimeBase which the Company has divested, to the extent that business contributed to consolidated results in such prior period.
About FiscalNote
FiscalNote (OTC: NOTE), the global leader in AI-driven policy intelligence, delivers its deep expertise in legislative tracking, regulatory analysis, and stakeholder engagement through PolicyNote, its flagship platform. Built to ensure the most complete, real-time view of the policy landscape, PolicyNote delivers synthesized, expert-driven analysis integrated with AI-powered monitoring, fueled by the trusted analysis and reporting of CQ and Roll Call, and the grassroots mobilization power of VoterVoice. From the committee room to the board room, FiscalNote's PolicyNote Suite ensures every user has the unmatched clarity and speed needed to understand and impact policy.
Fiscalnote Holdings Inc. published this content on August 10, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on August 10, 2026 at 21:01 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]