FiscalNote Holdings, Inc. Q4 FY2025 earnings call

Josh Resnick mentioned significant changes to strengthen the foundation, more profitable, agile and better positioned for future. Implemented cost actions guiding to adjusted EBITDA in Q1 2026 to $1 million and full year $14 - $16 million. Completed migration of customers from legacy platform to PolicyNote. Sales team increased multi - year contracts share. AI deployed across organization to improve productivity. PolicyNote has strong usage metrics, early trends show potential for stronger customer health. Expanded API offerings and explored new purchasing mechanisms. Prediction markets as new growth opportunity with partnerships and related products in development.

Total revenue for Q4 2025 was $22.2 million. Full year 2025 total revenue is $95.4 million. ARR at year end for 2025 was $84.1 million. Adjusted EBITDA for Q4 2025 was $2.5 million. Full year 2025 adjusted EBITDA totaled $10.3 million. Subscription revenue represented approximately 93% of total revenue for the full year.

Guiding to approximately $1 million of adjusted EBITDA in Q1 2026 and $14 - $16 million for full year 2026. Expect adjusted EBITDA margins to exceed 20% in remaining three quarters of 2026. Expect Fiscal Note to generate positive free cash flow for 12 months ending March 31, 2027. Forecast GAAP revenue for 2026 in range of 80 - $83 million and adjusted EBITDA in range of 14 - $16 million. Q1 2026 GAAP revenue expected between 20 - $21 million and adjusted EBITDA of approximately $1 million.

A small number of large enterprise customers chose to cancel without migrating to PolicyNote. Broader macroeconomic pressures influence client budgeting decisions. Transition of PolicyNote still in progress with more work to do, and broader factors like prior customer experience on legacy systems and platform refinement influence results.

Q: The gross margins continue to be really strong. Should we view them as sustainable or do some of these cost initiatives have a positive impact there?

A: John said over time they'll find ways to squeeze additional margin points, technology helping drive incremental savings.

Q: Can you give some color or flavor on maybe enterprise versus government versus NGO, the relative health and then does your new agentic ai capabilities does that help all three?

A: Josh said agentic ai is big opportunity, seen in large enterprise, SMB side, and mid - market and public sectors showing good success.

Q: Just on the prediction of the market opportunity, any view on the go - to - market plan for Kipschies, Fantasy Leagues, timing, et cetera?

A: Josh said those are earlier things, working on them and expect more on initiatives in coming weeks.

Q: Is that essentially just pushing forward the current run rate you have going exiting Q1 of this year? Or do you have non - core revenues business exits or anything else that's currently considered in the initial 2026 revenue guidance?

A: John said proportions going forward should be about the same, 93% of revenue will be subscription.

Q: Is there any way that we can get a little more detail around some of the enterprise customers that ultimately decided to turn off instead of moving over to PolicyNode?

A: Josh said part of it is migration timelines beyond internal deadlines and macro uncertainty.

Q: As you undertake some pretty considerable transformation initiatives within the business this year, can you give me a sense of your confidence in being able to drive growth with more of a product - led approach moving forward and essentially a pretty meaningful change in terms of just the monetization from seat - based licenses to more of a usage - based model?

A: Josh said feels very confident, data is valuable, unique, and they feel good about maintaining pricing integrity and ability to drive growth