FiscalNote (NOTE) Q4 2025 earnings summary

Executive summary

• Achieved significant operational transformation in 2025, including a 25% workforce reduction and over $35M in annual cash cost reductions, focusing 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 and simplifying the business.

• Launched PolicyNote, a modern AI-driven platform, completed migration of legacy customers, and introduced new AI-powered features.

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

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

• Q4 GAAP net loss: $22.9 million, including $12.4 million non-cash goodwill impairment.

• Q4 adjusted EBITDA: $2.5 million (11% margin); full year adjusted EBITDA: $10.3 million (margin 10.8%, up from 8.1% in 2024).

• Gross margin for Q4 2025: 80%; adjusted gross margin: 88%.

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

Outlook and guidance

• FY 2026 revenue guidance: $80–$83 million; adjusted EBITDA: $14–$16 million.

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

• Targeting adjusted EBITDA margins above 20% for 2026.

• Expect to achieve trailing 12-month positive free cash flow by end of Q1 2027 and remain free cash flow positive thereafter.

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