NOTE Stock Forecast & Price Target

FiscalNote Holdings Inc. exhibits a positive outlook driven by its strategic initiatives, including a significant reduction of senior debt by over 60%, which supports improved financial stability and enhances investor sentiment. The company's projected revenue for FY25 ranges between $94 million and $100 million, with the expectation of accelerated growth in 2H as its PolicyNote product gains traction. Additionally, with adjusted EBITDA demonstrating positivity since 3Q23 and a credible path to achieving free cash flow over the medium term, FiscalNote is positioned for sustained operational improvements and profitability.

FiscalNote Holdings Inc. reported an Annual Recurring Revenue (ARR) of $107 million, representing a slight decline from the previous year's $109 million, with customer retention also decreasing from 99% to 98%. The company anticipates further revenue declines due to two expected divestitures in 1Q25, projected to generate $40 million but adversely impacting 2025 revenues, which are now guided at $94-100 million, significantly lower than earlier forecasts of $124 million. Additionally, continued weak bookings and historical negative GAAP operating earnings raise concerns about the company's ability to achieve sustainable growth and profitability.