Company Overview
FiscalNote Holdings, Inc. operates as a technology provider specializing in global policy and market intelligence services across North America, Europe, Australia, and Asia. The firm delivers legal and policy insights within political, regulatory, and macroeconomic environments by combining artificial intelligence with other advanced technologies. This business model places the company within the Technology sector, specifically the Information Technology Services industry, where it functions as a specialized vendor for data-driven intelligence solutions. The company's current scale is characterized by a market capitalization of $10.29M and trailing twelve-month revenue of $95.41M, while specific employee count data is not publicly disclosed in the available records. These valuation and revenue figures indicate that FiscalNote is a small-cap entity with a relatively modest revenue base compared to large-scale enterprise software competitors. The low market capitalization relative to its revenue stream suggests the stock trades at a significant discount, potentially reflecting market concerns regarding its profitability trajectory or the niche nature of its service offerings in the policy intelligence space.
Financial Health
FiscalNote reported annual revenue of $95.41M over the trailing twelve months, yet this revenue generated a net income of -$65,247,000 and an EBITDA of -$28,015,000. The substantial gap between the $95.41M revenue and the -$65.2M net income reveals a highly leveraged cost structure where operating expenses and interest costs significantly outweigh gross profits. The company generated free cash flow of -$10,892,750, which indicates a lack of financial flexibility and a reliance on external capital sources to fund daily operations and growth initiatives. Profitability is further highlighted by three distinct margin metrics: a gross margin of 77.8%, an operating margin of -27.9%, and a profit margin of -68.4%. While the high gross margin of 77.8% suggests efficient cost of goods sold management, the negative operating and profit margins demonstrate that overhead and administrative costs are eroding the bottom line. Regarding liquidity and leverage, FiscalNote holds $26.31M in cash against $151.08M in total debt, resulting in a debt-to-equity ratio of 243.87. This heavy debt load relative to equity classifies the balance sheet as highly leveraged rather than conservative, exposing the firm to significant interest rate and refinancing risks. Short-term liquidity is assessed by a current ratio of 1.02, which indicates that current assets barely exceed current liabilities, leaving little room for error in meeting upcoming obligations. Finally, return metrics show a return on equity of -81.7% and a return on assets of -8.0%, revealing that management is currently destroying shareholder value and failing to generate efficient returns on the capital deployed in the business.
Valuation Assessment
The valuation of FiscalNote is presented through a trailing P/E ratio of N/A and a forward P/E of 0.98. The absence of a trailing P/E due to negative earnings contrasts sharply with a forward P/E under one, implying that the market is pricing in a potential return to profitability or a severe contraction in future earnings expectations. The price-to-book ratio stands at 0.14, indicating that the market values the company at a deep discount to its book value, suggesting a lack of market premium or significant undervaluation concerns. Alternative valuation metrics include a price-to-sales ratio of 0.11 and an EV/EBITDA of -4.62, which further emphasize that the stock trades at a fraction of its sales and generates negative earnings multiples. Price momentum is defined by a 52-week high of $12.96 and a 52-week low of $0.49, meaning the current price sits significantly below the recent high but remains above the absolute floor of the trading range. The stock exhibits a beta of 0.63, which means its price volatility is less than half that of the broader market, indicating lower systemic risk but also lower potential upside in bullish environments.
Growth & Income
FiscalNote experienced a revenue growth rate of -24.7% year-over-year, while earnings growth is marked as N/A due to negative net income. The contraction in revenue combined with negative earnings growth suggests that the company is struggling to maintain its top line and profitability simultaneously, implying a difficult path toward sustainable expansion. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, meaning it reinvests its limited earnings or utilizes cash reserves into growth rather than distributing income to shareholders. The overall growth and income profile is characterized by significant revenue decline, negative returns on capital, and a complete absence of dividend income for investors seeking yield.