FiscalNote delivers AI-enhanced data analytics and software platforms designed to empower government agencies and educational institutions with transparency tools and legislative intelligence.
The return to positive net income signals that FiscalNote has stabilized its business model, making it a compelling turnaround story for value investors. The company's unique position as the primary data provider for U.S. government tracking offers high barriers to entry and recurring revenue potential in a growing digital transformation market. If the company can maintain its profit margin while managing debt maturity, there is significant upside potential as it scales its AI capabilities.
Investors should exercise caution due to the precarious balance sheet with a retained earnings deficit of $-806.9M and heavy reliance on external financing to service debt. The volatility in operating cash flow, which turned negative in recent periods, raises concerns about liquidity if market conditions tighten or government spending slows. High marketing expenses of $35.1M indicate an aggressive growth strategy that may not yet be fully capitalized, risking margin compression.
FiscalNote Holdings, Inc. provides data-driven software solutions and analytics platforms primarily serving government agencies, municipalities, and educational institutions. The company leverages its extensive proprietary datasets to offer tools for public sector transparency, legislative tracking, and compliance management across North America. With a diverse revenue stream from SaaS subscriptions and consulting services, FiscalNote aims to modernize how public officials manage information and engage with constituents.
FiscalNote achieved a pivotal turnaround in 2024, reporting a net profit of $9.5M after years of significant losses, demonstrating successful operational efficiency improvements. Despite the strong bottom line, the company continues to manage substantial debt obligations with long-term debt of $147.0M and recent financing cash outflows exceeding $70M for repayments. The reduction in operating expenses relative to revenue growth suggests effective cost control measures are being implemented to sustain profitability.
The public sector data analytics industry is experiencing rapid growth driven by the digitalization of government functions and increasing demand for legislative transparency tools. This sector benefits from long-term secular trends including the need for better civic engagement platforms and the shift away from legacy mainframe systems toward cloud-native SaaS architectures. However, the market remains sensitive to political cycles and fiscal austerity measures that can impact public agency budgets.
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $113.8M | $132.6M | $120.3M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $113.8M | $132.6M | $120.3M |
| Operating Expenses | $202.0M | $230.4M | $152.2M |
| Operating Income | $-88.2M | $-97.7M | $-31.9M |
| R&D | $20.7M | $18.2M | $12.8M |
| G&A | $77.8M | $65.5M | $50.2M |
| Marketing | $42.7M | $45.7M | $35.1M |
| Stock-Based Comp | $38.0M | $27.1M | $17.9M |
| Depreciation | $1.2M | $1.3M | $1.2M |
| Amortization | $10.5M | $11.5M | $9.9M |
| Other OpEx | $60.7M | $100.9M | $54.1M |
| Non-Operating Income | $-133.3M | $-17.5M | $42.0M |
| Pre-Tax Income | $-221.5M | $-115.2M | $10.1M |
| Income Tax | $-3.3M | $223.0K | $536.0K |
| Continuing Ops | $-218.3M | $-115.5M | $9.5M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $-218.3M | $-115.5M | $9.5M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-218.3M | $-115.5M | $9.5M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Current Assets | $86.0M | $49.8M | $57.2M |
| Cash & Equivalents | $60.4M | $16.5M | $28.8M |
| Marketable Securities | — | $7.1M | $5.8M |
| Accounts Receivable | $14.9M | $16.9M | $13.5M |
| Other Current Assets | $10.7M | $9.3M | $9.1M |
| Long-Term Assets | $347.2M | $320.8M | $269.0M |
| PP&E (Net) | $7.3M | $6.1M | $5.1M |
| Goodwill | $194.4M | $187.7M | $159.1M |
| Operating Leases | $21.0M | $17.8M | $15.6M |
| Other LT Assets | $124.5M | $109.1M | $89.3M |
| Total Assets | $433.2M | $370.6M | $326.2M |
| Current Liabilities | $62.1M | $65.7M | $51.3M |
| Current Debt | $68.0K | $105.0K | $36.0K |
| Current Leases | $6.7M | $3.1M | $3.4M |
| Other Current Liab | $55.3M | $62.5M | $47.8M |
| Long-Term Liabilities | $226.4M | $261.5M | $177.1M |
| Long-Term Debt | $162.0M | $222.3M | $147.0M |
| LT Operating Leases | $29.1M | $26.2M | $22.5M |
| Other LT Liab | $35.3M | $13.0M | $7.6M |
| Total Liabilities | $288.5M | $327.1M | $228.4M |
| Shareholders' Equity | $144.7M | $43.5M | $97.8M |
| Paid-In Capital | $846.2M | $860.5M | $899.9M |
| Retained Earnings | $-700.7M | $-816.4M | $-806.9M |
| AOCI | $-785.0K | $-622.0K | $4.8M |
| Total L&E | $433.2M | $370.6M | $326.2M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $-218.3M | $-115.5M | $9.5M |
| Non-Cash Adjustments | $145.1M | $87.1M | $-11.5M |
| Working Capital Changes | $550.0K | $-7.2M | $-3.4M |
| Cash from Operations | $-72.6M | $-35.5M | $-5.3M |
| Cash from Investing | $-10.2M | $-20.3M | $89.2M |
| Debt Issuances | $166.0M | $11.5M | $6.3M |
| Debt Repayments | $189.1M | $107.0K | $70.8M |
| Share Buybacks | $88.0K | — | — |
| Cash from Financing | $111.5M | $12.1M | $-71.4M |
| FX Effect | $-449.0K | $-189.0K | $-284.0K |
| Net Change in Cash | $28.2M | $-43.9M | $12.2M |
| Beginning Cash | $33.0M | $61.2M | $17.3M |
| Ending Cash | $61.2M | $17.3M | $29.5M |
The company operates through its core Software segment delivering SaaS platforms like FiscalNote and Civicly for public sector clients, alongside a Consulting & Services segment offering custom implementation and training. Revenue is also generated from Data Licensing activities providing raw data feeds to third-party developers and media outlets, as well as Educational Solutions targeting K-12 and higher education institutions for civics curriculum support.
Significant debt burden with total liabilities of $228.4M against $97.8M in equity creates solvency risks, particularly given the recent net cash burn from operations. The company faces high customer concentration risk as public sector budget cuts or political shifts could lead to rapid churn among its government clients. Regulatory changes regarding data privacy or open records laws could disrupt its core data licensing revenue streams and increase compliance costs.
FiscalNote possesses a deep moat built on exclusive partnerships with major media organizations and government bodies that grant it unique access to real-time legislative and public records data. Its proprietary AI models can parse unstructured text from complex legal documents at scale, creating high switching costs for enterprise clients who integrate these tools into their workflow. The company's extensive historical dataset allows for predictive analytics capabilities that competitors lack, providing superior value in tracking policy trends.
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.