FiscalNote Holdings Reports 15.8% Revenue Decline and Increased Operating Loss in Q2 2026

FiscalNote Holdings, Inc. reported a significant decline in financial performance for the second quarter of 2026, with total revenues of $19.6 million, down 15.8% from $23.3 million in the same period last year. Subscription revenues, which constitute the bulk of the company's income, fell to $18.8 million, a decrease of 12.1% year-over-year. For the first half of 2026, total revenues were $39.6 million, down 22% from $50.8 million in the first half of 2025. The company attributed this decline to challenges in customer retention and the impact of federal government budget cuts, alongside the effects of previous business disposals, including the sales of Dragonfly and Oxford Analytica.

The company's operating expenses surged to $43.7 million in the second quarter, a 42.3% increase compared to $30.7 million in the prior year. This rise was primarily driven by a $19.1 million goodwill impairment charge, reflecting the company's declining market capitalization and operational challenges. Excluding this impairment, the operating loss for the quarter was $24.1 million, compared to a loss of $7.4 million in the same quarter of 2025. The net loss for the quarter reached $27.8 million, more than double the $13.3 million loss reported a year earlier.

In terms of strategic developments, FiscalNote has been focusing on streamlining operations and reducing costs, resulting in a reduction of its workforce from approximately 407 employees at the end of 2025 to about 343 by mid-2026. The company is also investing in its core Policy business and exploring new product offerings, including political prediction markets and enhanced API services. Despite these efforts, the company faces significant liquidity challenges, with a negative working capital balance of $135 million as of June 30, 2026, and an accumulated deficit of $943.6 million.

Looking ahead, FiscalNote's management has outlined plans to address its financial difficulties, including renegotiating debt obligations, pursuing asset sales, and potentially raising additional capital through equity offerings. However, the company has expressed uncertainty about its ability to meet its financial covenants and continue as a going concern, particularly following the delisting of its Class A common stock from the New York Stock Exchange in April 2026. The company’s future performance will depend on its ability to execute its strategic initiatives and stabilize its financial position in a challenging market environment.