FiscalNote Cuts Per-Share Loss to $0.18 Despite 17% Revenue Decline in Third Quarter
Key Facts
FiscalNote reported basic and diluted loss of $0.18 per share for the quarter ended September 30, 2026, compared with a loss of $1.73 in the year-earlier period, according to its filing with the U.S. Securities and Exchange Commission. Net loss fell to $5.9 million from $24.9 million a year earlier, an improvement at the bottom line that coincided with a contraction in activity. Revenue declined to $18.7 million from $22.4 million, a year-over-year decrease of 17%. The company said revenue was within its quarterly guidance range after adjusting for the impact of the sale of its FrontierView unit. The results show a widening gap between improved profitability and declining revenue, while no reliable estimate of analysts' consensus for the per-share loss could be verified.
Revenue declined across both main sources, with subscription revenue down 15% to $18.1 million and non-subscription revenue falling 51% to $0.6 million. The company attributed the larger decline in the latter category mainly to lower advertising revenue and non-recurring events. Subscription revenue, which accounts for the largest share of total revenue, also fell year over year, putting pressure on the recurring income base. The quarterly revenue retention rate was 97%, compared with 98% a year earlier. The company cited ongoing customer-retention challenges, alongside a strong contribution from the public sector, pointing to uneven performance across its business segments.
By contrast, operating expenses fell by $4.5 million, or 24%, in the third quarter, according to the company's measure, which excludes amortization, stock-based compensation, severance costs and other non-cash items. Adjusted EBITDA, a measure of operating profitability before interest, taxes, depreciation and amortization, rose to $3.6 million from $2.2 million a year earlier. The figure exceeded the company's quarterly guidance of about $3.5 million. This reflects the contribution of expense reductions to improved adjusted profitability despite contracting revenue. The improvement in net loss from $24.9 million to $5.9 million also highlights the scale of the year-over-year reduction in losses, but does not change the fact that the company posted a quarterly loss.
The company is also facing pressure on its cash resources. Cash and cash equivalents, restricted cash and short-term investments totaled $10.844 million on September 30, 2026, compared with $26.947 million on December 31, 2025. The loan amendment also provides for a mandatory principal payment of $15.049 million, due no later than March 31, 2027. Management said its current plans do not alleviate substantial doubt about FiscalNote's ability to continue as a going concern. It added that it is considering debt restructuring or extensions, as well as asset or business-unit sales to provide liquidity, with no assurance that these plans will succeed. These disclosures place reduced losses and improved EBITDA alongside financing obligations and limited available cash.
On its strategy going forward, CEO Kai Compton said the company's priority is to put its proprietary journalism content and legislative and regulatory data to work. Compton linked this to the midterm election results, saying, "The midterm election results are reshaping the 2027 agenda." The reference to the 2027 agenda comes as the company seeks to provide liquidity through options including debt restructuring and the sale of assets or business units, according to its filing. NOTE shares closed at $0.005 on November 6, 2026, according to EL7 data. No documented daily trading range was available for that date.