FiscalNote (NOTE) Q4 2024 earnings summary

Executive summary

• Achieved six consecutive quarters of positive adjusted EBITDA, with the first full year of positive adjusted EBITDA in 2024, improving by over $17 million year-over-year and 1,400 basis points.

• Streamlined operations and divested non-core businesses (Board.org, Aicel, Oxford Analytica, Dragonfly Intelligence), focusing on core AI-driven policy solutions and serving over 4,000 customers globally.

• Launched PolicyNote, an AI-first platform, in January 2025, driving strong customer engagement, multi-year contract momentum, and consolidating policy-related data and AI features.

• Board continues to review all strategic options to maximize shareholder value.

• Hired Chief Product Officer with AI legal tech experience.

Financial highlights

• FY2024 revenue was $120.3 million; Q4 2024 revenue was $29.5 million, with subscription revenue accounting for 92% of total.

• Adjusted EBITDA for 2024 was $9.8 million (8% margin), exceeding guidance and prior year; Q4 adjusted EBITDA was $3.3 million (11% margin).

• Adjusted gross margin improved to 87% in Q4 2024 (up from 83%); full-year adjusted gross margin was 86%.

• FY2024 net income was $9.5 million, a turnaround from a net loss of $115.5 million in FY2023, aided by gains on asset sales; Q4 2024 GAAP net loss was $13.4 million.

• Cash and equivalents at year-end 2024 were $35.3 million.

Outlook and guidance

• FY2025 revenue guidance is $94 million–$100 million, with adjusted EBITDA of $10 million–$12 million.

• Q1 2025 revenue expected at $26 million–$27 million, adjusted EBITDA around $2 million.

• Adjusted EBITDA margins expected to more than double year-over-year on a pro forma basis, with accelerated path to positive free cash flow.

• Guidance reflects cost savings, lower debt service, migration to PolicyNote, and market volatility, especially in the private sector and potential public sector changes.

• ARR growth expected to return in the second half of 2025, with GAAP revenue growth anticipated in 2026.