FiscalNote reported lower third-quarter revenue but higher adjusted EBITDA and a narrower net loss, as cost reductions helped profitability. The policy and regulatory intelligence company also completed the sale of its FrontierView market-intelligence business, which it said reduced debt and lets it focus on its core offerings.
It reaffirmed its 2026 guidance and issued a forecast for the fourth quarter. The announcement did not include the guidance or forecast figures.
Key details
- Revenue fell 17% to $18.7 million from $22.4 million a year earlier. The reported figures include FrontierView’s contribution through its August 27 sale. FiscalNote said revenue was within its $19 million to $20 million guidance range after adjusting for the divestiture.
- Subscription revenue was $18.1 million, down 15% year over year. On a pro forma basis excluding FrontierView, it was down 13%, reflecting declines in recurring revenue measures. Subscriptions accounted for 97% of total revenue, up from 94% a year earlier.
- Annual recurring revenue was $67.7 million, compared with $84.8 million a year earlier. Quarterly net revenue retention was 97%, versus 98% in the prior-year quarter. FiscalNote said retention had improved substantially from the first quarter, with strong contributions from its Public Sector business.
- Adjusted EBITDA increased to $3.6 million from $2.2 million, and its margin rose to 19% from 10%. The result was in line with the company’s guidance of about $3.5 million; FiscalNote attributed the improvement to lower costs.
- Net loss narrowed to $5.9 million from $24.9 million. Gross margin increased to 82% from 79%.
- Cash and cash equivalents were $10.8 million at September 30, compared with $31.8 million a year earlier.
- Non-subscription revenue declined to $0.6 million from $1.2 million, mainly because of lower advertising and event revenue, which the company characterized as non-recurring.
- FiscalNote said the FrontierView sale reduced balance-sheet debt and sharpened its focus on policy, legislative and regulatory intelligence. It did not give the amount of debt reduction.
- The company is developing PolicyNote as its main delivery platform and reported growing interest in its API and Model Context Protocol integrations, which allow customers to use FiscalNote data in AI tools and internal workflows. It signed its first Public Sector client for the API/MCP offering and added PolicyNote to Anthropic’s Claude Connectors Directory, alongside its existing OpenAI App Store listing.
- FiscalNote also brought its CQ, Roll Call, EU Issue Tracker and professional-services content teams under unified leadership.
The quarter’s reported revenue and subscription comparisons include FrontierView, while the company’s pro forma subscription comparison excludes it. The divestiture and shift toward PolicyNote concentrate the business on FiscalNote’s policy and regulatory intelligence products; the results also show profitability improving despite lower revenue.