FiscalNote Holdings, Inc. Q2 FY2026 earnings call

• New CEO Leadership Update • This is new CEO Key Compton's first earnings call; he has been an investor since 2020 and a board member since 2021, and has been in the role for approximately 30 days • Compton notes the company has two mutually reinforcing, differentiated core pillars: 1) expert human-generated policy intelligence through legacy brands CQ Roll Call, and 2) comprehensive, verified proprietary policy/regulatory data spanning all levels of global government • Management emphasizes that FiscalNote's deep, proprietary, continuously updated offering cannot be replicated by general-purpose AI, which cannot anticipate unwritten legislation or verify non-public, firewalled data

• Core Business & Operational Performance • Q2 2026 revenue landed within the guidance range at $19.6 million, while adjusted EBITDA came in $200,000 below guidance at $2.3 million • Annual Recurring Revenue (ARR) was $74.9 million, with a $800,000 quarter-over-quarter contraction that represented a meaningful deceleration of ARR decline from earlier in the year • Net Revenue Retention (NRR) improved to 98% from 89% in Q1 2026, driven by reduced client churn from successful platform consolidation and retention initiatives • The company reduced headcount by 27 full-time equivalents during the quarter, ending with ~343 total FTEs as of June 30, 2026 • A non-cash goodwill impairment charge of $19.1 million was recorded in the quarter, leading to a GAAP net loss of $27.8 million

• Strategic Priorities • Immediate priorities are core business stabilization, capital discipline, and returning to sustainable growth, moving away from the company's historical acquisition-led growth strategy • Key organic growth opportunities include deeper penetration of the existing 3,300+ customer base, expansion into adjacent areas like federal appropriations and government spending tracking, and scaling AI-accessible API and MCP ecosystem offerings that allow customers to embed FiscalNote data into their own AI workflows • Growing professional services to support customers in adopting AI-driven policy workflows is also identified as a meaningful growth opportunity • The company reports constructive, cooperative conversations related to its recent NYSE delisting and is evaluating relisting and other strategic alternatives with external advisor support

FiscalNote reports two primary revenue segments: subscription and non-subscription. For Q2 2026, total company revenue was $19.6 million. The subscription segment, the company's core business, generated $18.8 million in revenue, accounting for 96% of total revenue; this represents a 12% year-over-year decline, or an 11% pro forma decline excluding the sold Timebase business. The non-subscription segment generated $800,000 in revenue, accounting for 4% of total revenue, and saw a 59% year-over-year decline driven primarily by lower advertising and event revenue.

• Full-year 2026 guidance was revised downward: revenue is now guided to $75 to $78 million, down from the prior guidance range of $80 to $83 million; adjusted EBITDA is now guided to $9 to $11 million, down from the prior range of $14 to $16 million
• The downward revision reflects continued softness in federal and broader public sector demand, cautious private sector spending, and lower non-subscription revenue, partially offset by ongoing cost discipline and operating efficiency gains
• Q3 2026 guidance calls for revenue of $19 to $20 million and adjusted EBITDA of approximately $3.5 million, with benefits from first-half restructuring actions expected to be weighted toward the second half of 2026

• Continued macroeconomic caution and soft demand in the federal and broader public sector create ongoing revenue headwinds, reflected in the year-over-year revenue decline and downward guidance revision • The company was recently delisted from the New York Stock Exchange, creating capital market and financing uncertainty • The company is operating under short-term debt forbearance agreements with its lenders, creating near-term capital structure risk • General-purpose AI disruption of SaaS business models creates competitive pressure for the company, though management notes it is also positioned to benefit from AI adoption trends • Elevated client churn from earlier in 2026 has slowed but still resulted in ARR contraction in Q2 2026

There were no participant questions submitted during the Q&A portion of the call, so the conference concluded after prepared remarks.