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.
