FiscalNote Reports Mixed Q1 2026 Results Amid Transformation Push
Event summary
- FiscalNote reported Q1 2026 revenues of $20.0 million, down 27% YoY, with Adjusted EBITDA of $1.0 million, meeting guidance.
- Subscription revenue declined 25% YoY to $19.0 million, impacted by customer migrations and macroeconomic pressures.
- Company expects positive free cash flow on a next-twelve-month basis starting April 1, 2026, excluding restructuring costs.
- Launched expanded PolicyNote API with Model Context Protocol (MCP) support and entered political prediction markets.
- Announced organizational transformation to reduce operating expenses significantly.
The big picture
FiscalNote's Q1 2026 results reflect the challenges of transitioning to an AI-native platform amid macroeconomic headwinds. The company's strategic shift towards cost reduction and new growth initiatives in political prediction markets and agentic APIs highlights its efforts to adapt to a rapidly evolving AI ecosystem. The success of these initiatives will be critical in determining FiscalNote's ability to sustain its position as a leader in policy intelligence.
What we're watching
- Transformation Success
- Whether FiscalNote's operational transformation can deliver sustained positive free cash flow and offset revenue declines.
- Market Expansion
- The pace at which new growth initiatives in political prediction markets and agentic APIs gain traction.
- Customer Retention
- How PolicyNote's growing value to users will impact net revenue retention and subscription revenue trends.
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