FiscalNote (NOTE) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $20 million and adjusted EBITDA was $1 million, both in line with guidance, with 95% of revenue from subscriptions and a global customer base spanning over 3,400 organizations in 100+ countries.

• Profitability improved year-over-year, with operational transformation including a 25% headcount reduction and over 19% reduction in cash operating expenses, driving margin expansion and a defined path to positive free cash flow by Q1 2027.

• Strategic focus on AI-driven restructuring, platform consolidation, and entry into political prediction markets, leveraging proprietary data and analytics for new growth vectors.

• Delisting from NYSE occurred in March, with shares now trading on OTC Markets; operations remain unaffected, and the board continues to review all strategic options, including potential re-listing and further divestitures.

Financial highlights

• Q1 2026 total revenue was $20 million, down 27% year-over-year; subscription revenue comprised 95% of total, with non-subscription revenue at $1 million, down due to timing and lower advertising.

• ARR at quarter-end was $75.7 million, down from $84.1 million at year-end and $87.7 million a year ago, mainly due to loss of large customers and federal spending headwinds.

• Net revenue retention was 89%, down from 93% in Q1 2025; pro forma NRR at 89% versus 98%.

• GAAP net loss was $43.6 million, including a $35.6 million non-cash goodwill impairment; excluding this, net loss was ~$8 million.

• Adjusted EBITDA margin was 5.1%, down from 10.1% year-over-year due to revenue decline ahead of cost savings realization.

• Operating cash flow was positive at $3 million, with cash and equivalents at $26.5 million at quarter-end; principal payments of long-term debt totaled $1.9 million.

• Debt outstanding was $131.9 million at quarter-end, down from $136.2 million at year-end.

Outlook and guidance

• Full-year 2026 revenue guidance reaffirmed at $80–$83 million; adjusted EBITDA guidance at $14–$16 million.

• Q2 2026 revenue expected between $19.5–$20.5 million; adjusted EBITDA of ~$2.5 million.

• Adjusted EBITDA margin expected to improve materially through the year as cost actions take effect; positive free cash flow expected on a trailing or next-twelve-month basis by end of Q1 2027.

• Continued investment in PolicyNote and agentic workflows to drive engagement and retention; ongoing strategic review may lead to further divestiture of non-core products.