FiscalNote (NOTE) Q4 2025 earnings summary

Executive summary

• Achieved significant operational transformation in 2025, including a 25% workforce reduction, over $35M in annual cash cost reductions, and a focus on core policy intelligence and AI-driven insights for over 3,500 customers globally.

• Divested several non-core assets, generating $144.9 million in gross cash proceeds, simplifying the business, and supporting liquidity.

• Launched PolicyNote, a modern AI-driven platform, completed migration of all legacy customers, and introduced new AI-powered features, resulting in improved user engagement and retention.

• Entered new high-growth markets, including AI-driven consumption and political prediction markets, with partnerships and strategic advisors.

• Board continues to review all strategic options, including further divestitures, to maximize shareholder value.

Financial highlights

• Q4 2025 revenue: $22.2M, meeting guidance; full year 2025 revenue: $95.4M (down from $120.3M in 2024, due to divestitures); ARR at year-end: $84.1M.

• Subscription revenue comprised 93–95% of total revenue for Q4 and FY 2025.

• Q4 2025 adjusted EBITDA: $2.5M (11% margin), exceeding guidance; full year adjusted EBITDA: $10.3M.

• Q4 GAAP net loss: $22.9M, including $12.4M non-cash goodwill impairment; Q4 gross margin: 80%, adjusted gross margin: 88%.

• Cash and short-term investments at year-end: $24.3M–$26.9M; total debt: $136.2M.

Outlook and guidance

• 2026 GAAP revenue guidance: $80–$83M; adjusted EBITDA: $14–$16M, reflecting continued cost discipline and investment in core products.

• Q1 2026 revenue guidance: $20–$21M; adjusted EBITDA: ~$1M.

• Expect adjusted EBITDA margins to exceed 20% in 2026 and target positive trailing 12-month free cash flow by end of Q1 2027.

• Guidance reflects continued cost reductions, AI automation, and further divestitures.