FiscalNote Reports 20.5% Revenue Decline in Q2 2025, Operating Loss Improves

FiscalNote Holdings, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $23.3 million, a decrease of 20.5% compared to $29.2 million in the same period last year. Subscription revenues, which account for a significant portion of the company's income, fell by 21.3% to $21.4 million from $27.2 million. For the first half of 2025, total revenues were $50.8 million, down 17.2% from $61.4 million in the prior year. The company attributed this decline primarily to the impact of recent business disposals, including the sales of Dragonfly and Oxford Analytica, which significantly affected subscription revenue.

Operating expenses also decreased, totaling $30.7 million for the second quarter, down from $37.2 million a year earlier, reflecting a 17.5% reduction. The decrease was driven by lower costs associated with revenues, research and development, and sales and marketing, which collectively saw reductions due to workforce planning actions and the impact of business sales. Despite these reductions, the company reported an operating loss of $7.4 million for the quarter, slightly improved from a loss of $8.0 million in the same quarter of 2024.

In terms of strategic developments, FiscalNote has been actively restructuring its operations. The company completed several significant business sales, including the aforementioned Dragonfly and Oxford Analytica, which generated a pre-tax gain of $15.4 million. Additionally, the company has undertaken cost-saving measures that have improved cash used in operations by approximately $67 million year-over-year. As of June 30, 2025, FiscalNote had a cash position of $39.2 million, up from $35.3 million at the end of 2024, although it continues to face a negative working capital balance of $27.9 million.

The company has also made notable changes to its debt structure. On August 12, 2025, FiscalNote refinanced a substantial amount of its legacy debt, replacing the prior senior term loan with a new $75 million facility. This new loan is expected to provide the company with the necessary liquidity to support its operations and growth initiatives. The refinancing includes financial covenants that the company anticipates meeting, which will be crucial for maintaining operational stability.

Looking ahead, FiscalNote aims to focus on organic growth through its core policy business while exploring opportunities for geographic expansion and product innovation. The company plans to invest in building innovative products and enhancing its market position, particularly in regulated sectors. However, it remains cautious about external market conditions and their potential impact on future performance, particularly given its reliance on U.S. government contracts and the evolving regulatory landscape.