FiscalNote (NOTE) investor relations material

Executive summary

• Q2 2026 revenue was $19.6 million, matching guidance but down 16% year-over-year, with net loss widening to $27.8 million due to sector headwinds, earlier client churn, and goodwill impairment.

• Adjusted EBITDA was $2.3 million (11.9% margin), slightly below guidance, and net revenue retention improved to 98% from 89% sequentially.

• 96% of revenue was subscription-based, with ARR at $74.9 million, down 13% year-over-year.

• Company is focused on stabilizing core business, operational transformation, and returning to growth, including AI deployment and workforce restructuring.

• New CEO appointed in June 2026 to drive growth and strategic review underway.

Financial highlights

• Total revenue declined by $3.7 million year-over-year to $19.6 million, with subscription revenue down 12% and non-subscription revenue down 59%.

• Adjusted gross margin improved to 88% from 86% year-over-year; GAAP gross margin was 80%.

• Net loss for Q2 2026 was $27.8 million, including a $19.1 million non-cash goodwill impairment.

• Cash and cash equivalents at June 30, 2026, were $20.6 million.

• Headcount reduced by 27 FTEs, now at 343 as of June 30, 2026.

Outlook and guidance

• Full year 2026 revenue guidance lowered to $75–$78 million (from $80–$83 million), and adjusted EBITDA to $9–$11 million (from $14–$16 million).

• Q3 2026 guidance: revenue of $19–$20 million and adjusted EBITDA of ~$3.5 million.

• Guidance revision reflects continued sector softness, lower non-subscription revenue, and benefits from cost discipline and AI deployment.