FiscalNote Migrates All Clients, Cuts Expenses 19% and Eyes 20% EBITDA Margin
FiscalNote migrated all customers to its new Policy Note platform, cut operating expenses by 19%, and expects adjusted EBITDA margins above 20% in 2026. It posted a Q4 GAAP net loss of $22.9 million, with per-share loss narrowing to $0.66 from $1.20, and targets free cash flow by Q1 2027.
1. Platform Migration
FiscalNote has completed migration of its entire customer base from the legacy FiscalNote platform to the new Policy Note system, signaling full adoption of state and federal policy data tools. Despite this, some large enterprise clients opted out of migration, citing macroeconomic pressures and internal deadlines.
2. Cost Reductions and Margin Outlook
The company reduced cash operating expenses by over 19% year-over-year and projects adjusted EBITDA margins exceeding 20% in 2026, roughly double the prior year. These improvements are driven by 100% AI tooling adoption in engineering and further backend deprecations planned for H1 2026.
3. Q4 2025 Financial Results
In Q4 2025, FiscalNote reported a GAAP net loss of $22.9 million, which included a $12.4 million non-cash goodwill impairment. Revenue and ARR declined due to strategic divestitures and non-renewals of legacy products, while loss per share improved to $0.66 from $1.20 a year earlier.
4. Future Outlook
The company aims to achieve positive free cash flow by the end of Q1 2027 and is expanding into high-growth areas such as prediction markets and AI-driven consumption for new revenue streams. However, timing of material revenue contributions from these initiatives remains uncertain.