Summary
FiscalNote closed FY2024 Q4 with revenue of $29.47 million, down 14.0% from the prior-year quarter. Full-year revenue was $120.27 million, down 9.3%. The operating loss narrowed to $5.73 million in Q4, and the full-year operating loss narrowed to $31.94 million. Net loss for Q4 was $13.38 million, a narrower loss than the prior-year quarter. For the full year, net income was $9.52 million, a swing to profit from a net loss in the prior year. Diluted EPS for the full year was $0.07. Operating margin improved to negative 19.4% in Q4 from negative 116.5% in the prior-year quarter, an increase of 97.1 percentage points. Full-year operating margin was negative 26.6%, up 47.1 percentage points.
Cash flow and bookings showed mixed signals. Operating cash flow was negative $1.35 million in Q4, an improvement of 62.1% from the prior-year quarter. Full-year operating cash flow was negative $5.30 million, an improvement of 85.1%. Capital expenditures were $2.01 million in Q4, up 1.4%, and $8.88 million for the full year, up 11.9%. Deferred revenue was $35.48 million, down 20.1% from the prior-year quarter. Remaining performance obligations were $92.36 million, down 15.4%. These declines point to softer forward bookings. ARR was $107.5 million at December 31, 2024, compared with $126.1 million at December 31, 2023. Excluding discontinued products and divestitures, ARR was $93.3 million versus $96.5 million. Net revenue retention was 98% in the fourth quarter of 2024. Non-GAAP Adjusted EBITDA was $9.8 million for the full year, compared with negative $7.5 million in the prior year, and Adjusted EBITDA margin was 8% versus negative 6%.
The company continued to reshape its portfolio. It sold Aicel on October 31, 2024, and Board.org on March 11, 2024. It also signed an agreement to sell Oxford Analytica and Dragonfly, which closed on March 31, 2025. Management has been sunsetting non-core products and cutting costs. Over 90% of revenues are subscription based, which supports predictability. The company's cost actions reduced operating expenses across several categories, though the filing does not provide a formal revenue outlook. The focus remains on cross-selling, enterprise and government customers, and adjacent markets.
Risks remain elevated. ARR declined year over year. Deferred revenue and RPO also fell. The Senior Term Loan has financial covenants, and annual recurring revenue was below the minimum requirement at December 31, 2024. The lenders waived their rights upon default retroactive to that date on March 31, 2025. Liquidity remains a concern. The company had negative working capital and an accumulated deficit. It has relied on divestitures and cost savings. Customer retention is critical, and NRR was 98% in Q4. Macroeconomic and regulatory conditions could affect demand. The company may need additional capital, which could dilute shareholders or require unfavorable terms. Management's plan depends on executing divestitures, controlling costs, and growing recurring revenue.
Forecast
No forward guidance in this quarter's filings.
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $29.5M | $29.4M | +0.1% | $34.3M | -14.0% |
| Research & development | $2.9M | $3.3M | -11.0% | $4.0M | -28.0% |
| Sales & marketing | $7.6M | $9.1M | -16.5% | $10.5M | -27.9% |
| General & administrative | $12.3M | $10.6M | +15.6% | $16.7M | -26.6% |
| Total operating expenses | $35.2M | $36.3M | -2.9% | $74.2M | -52.6% |
| Operating income (loss) | -$5.7M | -$6.8M | +15.9% | -$39.9M | +85.6% |
| Operating margin | -19.4% | -23.1% | +3.7 pp | -116.5% | +97.1 pp |
| Net income (loss) | -$13.4M | -$14.9M | +10.4% | -$50.7M | +73.6% |
| Net margin | -45.4% | -50.7% | +5.3 pp | -148.1% | +102.7 pp |
| Diluted EPS | -$0.10 | -$0.11 | +$0.01 | -$0.39 | +$0.29 |
| Net retention rate | 99.0% | 99.0% | ±0.0 pp | 94.0% | +5.0 pp |
Risks
Total revenue for FY2024 year to date was down 9.3% to $120.27 million and Q4 revenue was down 14.0% to $29.47 million versus prior-year periods. ARR was $107.5 million at Dec 31, 2024 and $126.1 million at Dec 31, 2023, and MD&A attributes part of the decline to divested businesses and discontinued products.
Approximately 90% of revenues are subscription-based, and MD&A reports NRR of 98% for Q4 2024. If customers do not renew or reduce spending, revenue and deferred revenue could continue to decline; deferred revenue was down 20.1% at Dec 31, 2024 versus Dec 31, 2023.
U.S. government agency customers represent a material portion of total revenues. Risk factors cite exposure to changes in spending priorities, budget constraints, debt ceiling failures, government shutdowns, delayed payments, and contract termination or modification.
At Dec 31, 2024, the company had $168.2 million aggregate principal indebtedness, including $88.6 million under the Senior Term Loan secured by substantially all assets. Annual recurring revenue was below the minimum covenant at Dec 31, 2024, and lenders waived default retroactively on March 31, 2025; the Senior Term Loan requires monthly cash interest and principal payments beginning August 15, 2026.
Cash, cash equivalents, restricted cash, and short-term investments were $35.3 million at Dec 31, 2024, and negative working capital was $29.3 million excluding cash and short-term investments. Management is actively seeking additional capital and warns that credit market volatility may impair debt financing.
The company faces larger, well-funded competitors such as Bloomberg, Thomson Reuters, RELX, MSCI, Gartner, and S&P that could shift business models to compete directly. Risk factors highlight the need to enhance AI and machine learning capabilities and to attract AI talent.
The company has grown through acquisitions and recently divested Board.org, Aicel, Oxford Analytica, and Dragonfly. Risk factors warn that acquisitions may not achieve expected benefits, may divert management attention, and may increase capital requirements or dilute stockholders.
Success depends on attracting and retaining highly skilled employees, especially in AI, machine learning, and advanced algorithms. Competition for such talent is intense, and larger companies with more resources pursue top talent aggressively.
The company assists customers with legislative and governmental relations matters and may be deemed to be lobbying, requiring registration and compliance under federal, state, local, or foreign laws. Failure to register or comply could lead to civil or criminal penalties.
On November 25, 2024, the company received NYSE notice that it was not in compliance with the $1.00 minimum average closing price rule. It subsequently regained compliance, but future non-compliance could result in delisting or remedial action.
Convertible notes, warrants, and potential additional share issuances to satisfy financial covenants could significantly dilute existing stockholders and cause the market price of Class A common stock to decline. The warrants have an effective exercise price of $7.32 per share, while the Dec 31, 2024 closing price was $1.07.
SaaS KPIs
All quarters →Annual Recurring Revenue (ARR)
Summary, forecast, risks and KPIs are extracted from FiscalNote Holdings, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 1, 2026.