FiscalNote Revenue Dips 21% Amid Strategic Divestitures, AI Focus

TL;DR

**FiscalNote is shedding non-core assets to double down on AI-powered policy intelligence, but the revenue hit is a red flag for growth-focused investors.**

AI Summary

FiscalNote Holdings, Inc. (NOTE) reported total revenues of $95.4 million for the year ended December 31, 2025, a significant decrease from $120.3 million in 2024. This 20.7% decline is primarily attributed to strategic divestitures, including Board.org in March 2024, Aicel in October 2024, Oxford Analytica and Dragonfly in March 2025, and TimeBase in July 2025. The company's core business, PolicyNote, which delivers legislative tracking and regulatory analysis, generated approximately 93% of its 2025 total revenues through a subscription-based model. FiscalNote is strategically leveraging its proprietary data and AI expertise to launch new products in political and policy prediction markets and enhance agentic APIs with self-service access and native support for the Model Context Protocol (MCP). The company serves a diverse customer base, including 46 of the Fortune 100, and aims for sustainable, profitable growth by focusing on its core Policy business and streamlining operations after completing 16 acquisitions between 2017 and 2023.

Why It Matters

FiscalNote's strategic pivot, marked by significant divestitures and a sharpened focus on its core PolicyNote platform and AI-driven solutions, signals a critical juncture for the company. While revenue declined by $24.9 million due to these sales, the emphasis on high-margin subscription revenue (93% of 2025 total) and new AI product development could improve long-term profitability and competitive positioning against larger, well-funded companies shifting into their market. Investors should monitor the success of these new AI offerings and the impact of streamlining operations on net income, as the company aims to return to sustainable growth in a rapidly evolving regulatory intelligence market. Employees and customers will experience a more focused product suite, potentially leading to enhanced service quality and innovation.

Risk Assessment

Risk Level: medium — The company faces medium risk due to a significant 20.7% revenue decline from $120.3 million in 2024 to $95.4 million in 2025, largely driven by divestitures. While strategic, this reduction impacts immediate financial performance. Additionally, the filing highlights risks from 'larger well-funded companies shifting their existing business models to become more competitive' and 'general purpose generative AI platforms and agentic AI tools directly competing with and reducing demand for custom-built SaaS tools,' indicating intense competitive pressure and potential market disruption.

Analyst Insight

Investors should closely monitor FiscalNote's upcoming earnings reports for signs of stabilization or growth in its core Policy business and the adoption rates of its new AI-powered prediction market and agentic API offerings. A wait-and-see approach is advisable until there's clear evidence that the strategic divestitures and AI investments are translating into improved profitability and a reversal of the revenue decline.

Financial Highlights

debt To Equity

Not Disclosed

revenue

$95.4 million

operating Margin

Not Disclosed

total Assets

Not Disclosed

total Debt

Not Disclosed

net Income

Not Disclosed

eps

Not Disclosed

gross Margin

Not Disclosed

cash Position

Not Disclosed

revenue Growth

-20.7%

Revenue Breakdown

Key Numbers

• $95.4 million — Total revenues for 2025 (decreased from $120.3 million in 2024)
• $120.3 million — Total revenues for 2024 (decreased to $95.4 million in 2025)
• 93% — Percentage of 2025 total revenues from subscriptions (indicates recurring revenue model)
• 46 — Number of Fortune 100 companies served (demonstrates customer base quality)
• 540 — Number of employees as of December 31, 2025 (global workforce size)
• 16 — Number of acquisitions completed from 2017 to 2023 (preceding strategic refocus)
• $61,350,537 — Aggregate market value of non-affiliate common equity on June 30, 2025 (market capitalization for non-affiliates)
• 18,681,540 — Shares of Class A common stock outstanding as of March 9, 2026 (total Class A shares)
• 690,909 — Shares of Class B common stock outstanding as of March 9, 2026 (total Class B shares)
• 2013 — Year FiscalNote was established (company founding year)

Key Players & Entities

• FiscalNote Holdings, Inc. (company) — registrant
• Board.org (company) — divested in March 2024
• Aicel (company) — divested in October 2024
• Oxford Analytica (company) — divested in March 2025
• Dragonfly (company) — divested in March 2025
• TimeBase (company) — divested in July 2025
• NYSE (regulator) — exchange for Class A common stock
• SEC (regulator) — Securities and Exchange Commission
• Duddell Street Acquisition Corp. (company) — merged with Old FiscalNote
• Old FiscalNote (company) — pre-merger entity

FAQ

Risk Factors

• Dependence on AI and Data Science Expertise [high — operational]: The company's core business relies heavily on its in-house AI and data science expertise to ingest and structure policy data. Any failure to maintain or advance this expertise, or disruptions in the underlying technology, could materially impact the company's ability to deliver its products and services.
• Evolving AI Landscape and New Product Launches [medium — market]: FiscalNote is investing in new products related to AI, prediction markets, and agentic APIs. The success of these ventures is subject to market adoption, competitive pressures from general-purpose AI tools, and the company's ability to execute on its product development roadmap.
• Integration of Acquired Businesses [medium — operational]: The company has completed 16 acquisitions between 2017 and 2023. The successful integration of these businesses and realization of synergies is critical for streamlining operations and achieving profitable growth. Any integration challenges could negatively impact financial performance.
• Data Privacy and Security [high — regulatory]: As a provider of policy intelligence, FiscalNote handles sensitive data. Maintaining robust cybersecurity measures and complying with evolving data privacy regulations globally is crucial to prevent breaches and maintain customer trust.
• Competition in Policy Intelligence [medium — market]: The policy intelligence market is competitive, with established players and emerging technologies. FiscalNote faces competition from various sources, including traditional research firms and new AI-driven solutions, which could affect market share and pricing power.

Industry Context

The policy intelligence and government affairs technology sector is characterized by increasing demand for data-driven insights and AI-powered solutions. Companies like FiscalNote operate in a landscape where legislative and regulatory environments are constantly evolving globally. Key trends include the integration of AI for predictive analytics, the need for real-time monitoring, and the growing importance of stakeholder engagement tools.

Regulatory Implications

FiscalNote's business is inherently tied to government policy and regulation. Changes in legislation or regulatory frameworks could impact the demand for its services or the data it collects. Furthermore, as a technology company handling sensitive data, it must comply with evolving data privacy and cybersecurity regulations across different jurisdictions.

What Investors Should Do

1. Monitor the success of new AI and prediction market product launches.
2. Analyze the profitability of the core PolicyNote business post-divestitures.
3. Assess the competitive positioning against emerging AI solutions.
4. Evaluate the integration and performance of previously acquired entities.

Key Dates

• 2024-03-01: Divestiture of Board.org — Part of a strategic refocusing, contributing to the overall revenue decline in 2024 and 2025.
• 2024-10-01: Divestiture of Aicel — Further contributed to the revenue decrease as the company streamlines its portfolio.
• 2025-03-01: Divestiture of Oxford Analytica and Dragonfly — Continued strategic divestitures impacting reported revenue figures for 2025.
• 2025-07-01: Divestiture of TimeBase — Another divestiture contributing to the significant year-over-year revenue decline.
• 2025-06-30: Aggregate market value of non-affiliate common equity calculated — Provides a snapshot of the company's market capitalization for non-affiliate shareholders on a specific date.
• 2026-03-09: Shares of Class A and Class B common stock outstanding reported — Details the capital structure of the company, important for understanding ownership and potential dilution.

Glossary

PolicyNote

FiscalNote's flagship platform that provides legislative tracking, regulatory analysis, and stakeholder engagement. (This is the core business segment, generating the vast majority of the company's revenue.)

Agentic APIs

Application Programming Interfaces designed to enable autonomous agents or systems to interact with services and data. (Represents a new product area for FiscalNote, aiming to integrate policy intelligence directly into customer systems.)

Model Context Protocol (MCP)

A protocol that allows AI models to understand and utilize specific contextual information, enhancing their performance and relevance. (Indicates FiscalNote's focus on advanced AI integration and interoperability for its policy intelligence products.)

CQ Federal

A product offering from FiscalNote that provides federal legislative tracking and analysis. (Part of the core PolicyNote suite, contributing to the company's policy intelligence offerings.)

VoterVoice

A tool offered by FiscalNote that provides grassroots mobilization capabilities for stakeholder engagement. (Enhances the PolicyNote platform by adding a component for client action and advocacy.)

Proprietary data sets

Unique and exclusive data collected and owned by FiscalNote, used to train AI models and generate insights. (A key asset for FiscalNote, enabling differentiation and the development of advanced AI-powered products.)

Year-Over-Year Comparison

FiscalNote reported a significant revenue decline of 20.7% for 2025 compared to 2024, primarily due to strategic divestitures of non-core assets. While specific margin data is not detailed in this section, the company's strategic refocus suggests an effort to improve operational efficiency and profitability in its core PolicyNote business. No new major risks were explicitly highlighted in the provided text, but the ongoing evolution of AI and market dynamics remain key considerations.

Key Financial Figures

• $0.0001 — tered Class A common stock, par value $0.0001 per share NOTE NYSE Warrants to p
• $11.50 — mon stock, each at an exercise price of $11.50 per warrant NOTE.WS NYSE Securiti
• $95.4 million — untries. We generated total revenues of $95.4 million and $120.3 million for the years ended
• $120.3 million — ted total revenues of $95.4 million and $120.3 million for the years ended December 31, 2025 a

Filing Documents

• note-20251231.htm (10-K) — 4316KB
• note-ex4_1.htm (EX-4.1) — 432KB
• note-ex10_17.htm (EX-10.17) — 1439KB
• note-ex10_26.htm (EX-10.26) — 216KB
• note-ex21_1.htm (EX-21.1) — 18KB
• note-ex23_1.htm (EX-23.1) — 6KB
• note-ex31_1.htm (EX-31.1) — 20KB
• note-ex31_2.htm (EX-31.2) — 20KB
• note-ex32.htm (EX-32) — 20KB
• note-ex97_1.htm (EX-97.1) — 156KB
• note-ex99_1.htm (EX-99.1) — 602KB
• img145191857_0.gif (GRAPHIC) — 6KB
• img220831918_0.gif (GRAPHIC) — 13KB
• 0001193125-26-120769.txt ( ) — 23832KB
• note-20251231.xsd (EX-101.SCH) — 3577KB
• note-20251231_htm.xml (XML) — 4020KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 35 Item 1C. Cybersecurity 35 Item 2.

Properties

Properties 36 Item 3.

Legal Proceedings

Legal Proceedings 36 Item 4. Mine Safety Disclosures 36 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 37 Item 6. Reserved 37 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 38 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 55 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 56 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 103 Item 9A.

Controls and Procedures

Controls and Procedures 103 Item 9B. Other Information 105 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 105 PART III Item 10. Directors, Executive Officers and Corporate Governance 106 Item 11.

Executive Compensation

Executive Compensation 106 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 106 Item 13. Certain Relationships and Related Transactions, and Director Independence 106 Item 14. Principal Accountant Fees and Services 106 PART IV Item 15. Exhibits, Financial Statement Schedules 106 Item 16. Form 10-K Summary 109 vi PART I It em 1. Business. Overview We deliver deep expertise in legislative tracking, regulatory analysis, and stakeholder engagement through PolicyNote, our flagship platform. Built to ensure a complete, real-time view of the policy landscape, PolicyNote delivers extensive policy data integrated with AI-powered monitoring and expert analysis, fueled by the trusted reporting of CQ and Roll Call, and coupled with the grassroots mobilization power of VoterVoice. Our PolicyNote suite rapidly provides users with the clarity on the policy landscape needed to make an impact. In our core products, we ingest unstructured data on legislative and regulatory developments, and overlay that data with our sophisticated in-house AI and data science expertise to deliver structured, relevant and actionable information that facilitates and informs our customers' key operational and strategic decisions. In the U.S., we source data at the local, municipal, regional, state, and Federal level. Our portfolio of public policy intelligence products includes PolicyNote, CQ Federal, and Curate. Our products incorporate workflow tools that enable our clients to monitor, manage, collaborate and efficiently organize for action on the issues that matter most to them, integrating global policy intelligence seamlessly into their daily activities. We pair our AI and technology expertise with global policy experts to ensure our customers get the full picture. Our news room also covers Capitol Hill, offering more than 80 years of trusted nonpartisan policy analysis trusted by members of Congress and lobbyists alike. We also offer EU Is

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View this 10-K filing on SEC EDGAR