FiscalNote Holdings, Inc.

What they do

FiscalNote delivers policy and regulatory intelligence through its PolicyNote flagship platform, which ingests unstructured legislative data and overlays it with AI-powered monitoring and expert analysis. The company offers products like PolicyNote, CQ Federal, and Curate, fueled by CQ and Roll Call reporting and the grassroots mobilization tool VoterVoice. It also provides EU Issue Tracker for European Union policy analysis and professional services covering policy monitoring in over 100 countries, and is developing agentic APIs and prediction market products.

Revenue drivers

• Subscription revenue — Core recurring revenue from PolicyNote and related platforms; comprised 96% of total Q2 2026 revenues.
• PolicyNote platform — Flagship product for legislative tracking and regulatory analysis, driving customer engagement and retention; net revenue retention improved to 98% in Q2 2026.
• CQ Federal and Curate — Policy intelligence products targeting federal and specialized audiences, contributing to the subscription base.
• Agentic API offerings — New PolicyNote MCP APIs licensed to enterprises like Siemens and a global technology company, providing incremental revenue.

Recent performance

For Q2 2026, total revenues were $19.6 million, down 16% year-over-year from $23.3 million, with subscription revenue at 96% of total. Gross profit was $15.6 million (80% margin), and net loss widened to $27.8 million from $13.3 million in the prior-year quarter. Adjusted EBITDA was $2.3 million, slightly below guidance of $2.5 million. Quarterly net revenue retention improved to 98% from 89% in Q1 2026. For the six months ended June 30, 2026, revenue was $39.6 million, compared to $46.4 million in the same period of 2025.

Strategy

Management is executing a workforce transformation initiated in March 2026, including AI deployment, team restructurings, insourcing of third-party spend, and cost reduction. The company is focusing on operational efficiency and improving operating leverage while investing in agentic API solutions and prediction markets. It is leveraging proprietary data sets to launch new products across the prediction markets ecosystem and enhancing self-service access for APIs with native MCP support. The company aims to stabilize core business through platform migration and retention efforts, as reflected in improved net revenue retention.

Risks

• Debt defaults and liquidity — NYSE delisting triggered defaults on subordinated notes; forbearance expires August 21, 2026, and the senior term loan cross-default and EBITDA covenant breach remain unresolved.
• Revenue decline — Total revenues fell 16% year-over-year in Q2 2026, partly due to divestitures of Board.org, Aicel, Oxford Analytica, Dragonfly, and TimeBase.
• Customer churn — Net revenue retention was 89% in Q1 2026, indicating significant churn, though it improved to 98% in Q2.
• Operational transformation execution — The planned cost reductions and AI deployment may disrupt operations or fail to achieve expected savings.

Outlook

Management provided Q3 2026 guidance of total revenues in line with $19.5 to $20.5 million and adjusted EBITDA above $2.5 million, while revising full-year 2026 guidance. The company expects continued operational transformation, with an emphasis on agentic API adoption and prediction market expansion. The forbearance period for subordinated debt extends to August 21, 2026, with potential default on the senior term loan if not extended.