FiscalNote (NOTE) investor relations material

Executive summary

• Q1 2026 revenue was $20 million and adjusted EBITDA was $1 million, both in line with guidance, with 95% of revenue from subscriptions and a global customer base spanning over 3,400 organizations in 100+ countries.

• Profitability improved year-over-year, with operational transformation including a 25% headcount reduction and over 19% reduction in cash operating expenses, supporting a defined path to positive free cash flow by Q1 2027.

• Major migration to the AI-powered PolicyNote platform completed, driving higher adoption, engagement, and retention than legacy platforms.

• Strategic entry into political prediction markets and expansion of API offerings, including agentic APIs, are expected to drive future growth.

• Delisting from NYSE occurred, with shares now trading on OTC Markets; the Board is reviewing all strategic options, including potential re-listing and further divestitures.

Financial highlights

• Q1 2026 total revenue was $20 million, down 27% year-over-year, with subscription revenue making up 95% and non-subscription revenue declining.

• ARR at quarter-end was $75.7 million, down from $84.1 million at year-end and $87.7 million a year ago, mainly due to loss of large customers and federal spending headwinds.

• Net revenue retention was 89%, down from 93% in Q1 2025.

• GAAP net loss was $43.6 million, including a $35.6 million non-cash goodwill impairment; excluding this, net loss was ~$8 million.

• Adjusted EBITDA margin was 5.1%, down from 10.1% in Q1 2025; GAAP gross margin was 79% and adjusted gross margin was 87%.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $80–$83 million; adjusted EBITDA guidance at $14–$16 million.

• Q2 2026 revenue expected between $19.5–$20.5 million; adjusted EBITDA of ~$2.5 million.

• Adjusted EBITDA margin expected to improve materially through 2026 as cost actions take effect; positive free cash flow targeted on a trailing 12-month basis by Q1 2027.

• Management expects restructuring actions to benefit results in the second half of 2026.

• Ongoing strategic review may lead to further divestiture of non-core products.