FiscalNote Q2 Revenue Meets Target, but Full-Year Outlook Slashed Amid $54.7M Goodwill Impairment and Going-Concern Risk
NOTEW has more than doubled off its 52-week low of $0.001 on light trading volume (0.1× avg).
Summary
FiscalNote's Q2 revenue met guidance, but full-year forecasts were cut sharply. A $19.1M goodwill impairment, $27.8M net loss, and only $20.6M cash against heavy debt maturities deepen the crisis, though retention improved to 98%.
Key Events · Earnings and Guidance · NOTEW
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Q2 Revenue In Line, EBITDA Misses
Revenue of $19.6M met guidance of $19.5–20.5M, but adjusted EBITDA of $2.3M was $0.2M below the $2.5M forecast.
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Full-Year Guidance Slashed
2026 revenue guidance cut to $75–78M from $80–83M; adjusted EBITDA lowered to $9–11M from $14–16M, reflecting persistent public-sector softness.
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$54.7M Goodwill Impairment in H1 2026
Q2 included a $19.1M non-cash goodwill impairment, bringing the six-month total to $54.7M, signaling a severe decline in the estimated value of past acquisitions.
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Precarious Liquidity Position
Cash and equivalents stood at $20.6M as of June 30, 2026, against $106.8M in current debt maturities, with a going-concern warning and breached covenants already disclosed.
Analysis · NOTEW · Trade & Services
FiscalNote delivered Q2 revenue of $19.6 million, matching its own forecast, yet adjusted EBITDA fell $0.2 million short at $2.3 million. More troubling, the company sharply reduced its full-year 2026 guidance—revenue is now expected at $75–78 million, down from $80–83 million, and adjusted EBITDA at $9–11 million, down from $14–16 million—citing persistent softness in federal and public sector spending. The quarter also included a $19.1 million non-cash goodwill impairment, pushing the first-half total to $54.7 million, while cash and equivalents at June 30 stood at just $20.6 million against $106.8 million in current debt maturities. With a going-concern warning in the concurrent 10-Q, breached debt covenants, and a recent CEO change, these results highlight the severity of FiscalNote's financial distress. One bright spot: net revenue retention jumped to 98% from 89% sequentially, suggesting the core subscription business may be stabilizing even as the company fights for survival.
At the time of this filing, NOTEW was trading at $0.02 on OTC in the Trade & Services sector, with a market capitalization of approximately $2.9M. The 52-week trading range was $0.00 to $0.56. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.