NOTE Stock Forecast & Price Target

FiscalNote Holdings Inc. demonstrates a positive financial outlook, as it has successfully reduced its senior debt by over 60% while projecting revenue growth for FY25 between $94-100 million, which is comparable to pro forma figures. The company anticipates strengthening its balance sheet further with the divestiture of non-core assets, such as Oxford Analytica and Dragonfly, expected to lower debt by approximately $30 million around March 2025. With an internal CEO promotion fostering a more favorable investor sentiment and ongoing improvements in profitability, FiscalNote is well-positioned to achieve free cash flow positivity within the next two to three years.

FiscalNote Holdings Inc. reported an Annual Recurring Revenue (ARR) of $107 million, which reflects a slight decline from the previous year's $109 million following asset sales, coupled with a drop in retention from 99% to 98% year-over-year. The company anticipates two additional divestitures in 1Q25 that are expected to generate $40 million in proceeds but will significantly lower revenue projections for 2025, with guidance now set at $94-100 million, well below earlier forecasts. The overall revenue decline of 14% year-over-year, attributed to prior asset sales and weak bookings, combined with a history of negative GAAP operating earnings, contributes to a negative outlook for the company's financial stability and growth prospects.