FiscalNote Holdings, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenues of $27.5 million, down 14.3% from $32.1 million in the same period last year. The decrease was primarily driven by a 15% drop in subscription revenue, which fell to $25.2 million from $29.6 million. The company attributed this decline to the impact of recent business disposals, including the sale of Board.org and Aicel, as well as challenges in customer retention and federal government spending cuts. The net loss for the quarter was $4.3 million, a significant decrease from a net income of $50.6 million in Q1 2024, which included a substantial gain from the sale of businesses.
In terms of operational metrics, FiscalNote's Annual Recurring Revenue (ARR) decreased to $87.7 million as of March 31, 2025, down from $107.5 million at the end of 2024. The company reported a reduction in its full-time equivalent headcount by approximately 115 employees, reflecting ongoing efforts to streamline operations and reduce costs. The company’s cash and cash equivalents, along with short-term investments, totaled $46.9 million at the end of the quarter, an increase from $35.3 million at the end of 2024.
Strategically, FiscalNote completed the sale of its Dragonfly and Oxford Analytica businesses for $40 million in cash on March 31, 2025, which resulted in a pre-tax gain of $15.7 million. The proceeds from this sale were used to pay down $27.1 million of its Senior Term Loan, reflecting the company's focus on reducing debt and improving its financial position. Additionally, the company has implemented various cost-saving measures and is actively exploring further opportunities for rationalization and capital restructuring.
Looking ahead, FiscalNote faces challenges related to its liquidity and ongoing operational costs, with management indicating that significant expenditures will be necessary to support its business plan, including market expansion and product development. The company has expressed concerns about its ability to maintain compliance with financial covenants under its debt agreements, which could impact its operations if not addressed. As such, FiscalNote is evaluating additional sources of capital and strategic alternatives to enhance stakeholder value.
About FiscalNote Holdings, Inc.
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