Revenue: As of FY2026 Q2, the actual value is USD 19.58 M, missing the estimate of USD 19.85 M.

EPS: As of FY2026 Q2, the actual value is USD -1.06, missing the estimate of USD -0.44.

EBIT: As of FY2026 Q2, the actual value is USD -23.93 M.

Second Quarter 2026 Financial Highlights

Revenue

• Total Revenues: FiscalNote Holdings, Inc. reported total revenues of $19.6 million for Q2 2026, a -16% decrease from $23.3 million in Q2 2025. This was in line with guidance of $19.5 million to $20.5 million.
• Subscription Revenue: Subscription revenue was $18.8 million in Q2 2026, a -12% decline from $21.4 million in Q2 2025. Subscription revenue represented 96% of total revenues in Q2 2026, up from 92% in Q2 2025.
• Non-Subscription Revenue: Advisory, advertising, and other revenue decreased to $0.8 million in Q2 2026 from $1.9 million in Q2 2025, a -58% decline.

Profitability

• Gross Profit: Gross profit was $15.6 million in Q2 2026, down -15% from $18.3 million in Q2 2025.
• Gross Margin: Gross margin was 80% in Q2 2026, an increase of 100 basis points from 79% in Q2 2025.
• Adjusted Gross Profit: Adjusted gross profit was $17.3 million in Q2 2026, a -14% decrease from $20.1 million in Q2 2025.
• Adjusted Gross Margin: Adjusted gross margin was 88% in Q2 2026, an increase of 200 basis points from 86% in Q2 2025.
• Net Loss: The company reported a net loss of - $27.8 million in Q2 2026, compared to a net loss of - $13.3 million in Q2 2025.
• Operating Loss: Operating loss for the three months ended June 30, 2026, was - $24,090 thousand, compared to - $7,427 thousand for the same period in 2025.
• Adjusted EBITDA: Adjusted EBITDA was $2.3 million in Q2 2026, a -18% decrease from $2.8 million in Q2 2025, and $0.2 million below guidance of $2.5 million.
• Adjusted EBITDA Margin: Adjusted EBITDA margin remained flat at 12% in both Q2 2026 and Q2 2025.

Operating Expenses

• Total Operating Expenses: Total operating expenses increased by $13.0 million, or 42%, to $43.7 million in Q2 2026 from $30.7 million in Q2 2025, primarily due to a non-cash goodwill impairment charge.
• Goodwill Impairment: A goodwill impairment charge of $19.1 million was recorded in Q2 2026, with no such charge in Q2 2025.
• Research and Development: Research and development expenses decreased by -30% to $1.6 million in Q2 2026 from $2.3 million in Q2 2025.
• Sales and Marketing: Sales and marketing expenses decreased by -33% to $4.5 million in Q2 2026 from $6.7 million in Q2 2025.
• General and Administrative: General and administrative expenses decreased by -19% to $9.2 million in Q2 2026 from $11.4 million in Q2 2025.

Key Performance Indicators (KPIs)

• Annual Recurring Revenue (ARR): As of June 30, 2026, ARR declined by $11.0 million, or approximately -13%, to $74.9 million on an as-reported basis, compared to $85.9 million as of June 30, 2025.
• Pro Forma ARR: Pro forma ARR declined by $9.8 million, or approximately -12%, to $74.9 million as of June 30, 2026, compared to $84.7 million as of June 30, 2025.
• Net Revenue Retention (NRR): Quarterly NRR improved to 98% in Q2 2026, up from 89% in the first quarter. The trailing twelve-month NRR was 81%.

Cash Flow and Liquidity (Six Months Ended June 30)

• Net Cash from Operating Activities: Net cash provided by operating activities was $895 thousand in the first six months of 2026, compared to net cash used in operating activities of - $2,895 thousand in the same period of 2025.
• Net Cash from Investing Activities: Net cash used in investing activities was - $3,323 thousand in the first six months of 2026, compared to net cash provided by investing activities of $36,795 thousand in the same period of 2025.
• Net Cash from Financing Activities: Net cash used in financing activities was - $3,705 thousand in the first six months of 2026, compared to - $28,817 thousand in the same period of 2025.
• Cash and Cash Equivalents (End of Period): Cash and cash equivalents were $17,953 thousand as of June 30, 2026, compared to $24,319 thousand as of December 31, 2025.

Outlook / Guidance

FiscalNote Holdings, Inc. updated its full-year 2026 total revenue guidance to $75 million to $78 million and Adjusted EBITDA to $9 million to $11 million, both revised downwards from previous projections. For Q3 2026, the company anticipates total revenues of $19 million to $20 million and Adjusted EBITDA of approximately $3.5 million. These revisions are attributed to continued softness in the federal and broader public sector, a cautious private-sector spending environment, and lower non-subscription revenue, partially offset by cost discipline.