FiscalNote Misses EBITDA Target but Shows Revenue Retention Improvement — FiscalNote Holdings, Inc.

Event summary

FiscalNote reported Q2 2026 revenues of $19.6M, in line with guidance but $0.2M below adjusted EBITDA target.
Net revenue retention improved to 98% from 89% sequentially, indicating stabilization in core business.
Operating expenses increased by 42% YoY due to a non-cash goodwill impairment charge of $19.1M.
FiscalNote secured new licenses for its PolicyNote MCP APIs with Siemens and another global tech company.
Full-year revenue guidance was revised downwards to $75-$78M from $80-$83M.

The big picture

FiscalNote's Q2 2026 results reflect a mixed bag of operational improvements and financial challenges. The company's focus on AI-driven policy intelligence and early adoption of its agentic API product offerings show strategic promise, but macroeconomic pressures and geopolitical uncertainties continue to weigh on its customer base. The ongoing strategic review suggests a potential pivot in governance or asset allocation to navigate these dynamics.

What we're watching

Revenue Growth: Whether FiscalNote can sustain its improved net revenue retention and stabilize core business growth amid cautious private-sector spending.
Cost Discipline: The pace at which FiscalNote's restructuring actions will benefit results in the back half of 2026, driving meaningful EBITDA ramp.
Strategic Review: How the ongoing strategic review and potential divestitures of non-core assets will impact FiscalNote's long-term value maximization.