Earnings report 📈 Stocks 🌍 United States

FiscalNote Q3 Adjusted EBITDA Rises 65% to $3.6 Million on Cost Cuts

FiscalNote narrows net loss to $5.9 million in Q3 2026 while reaffirming full-year guidance, as the company continues a strategic review of potential asset divestitures to drive further efficiency.

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1 assets impacted (Stocks). Net bias: 0 Bullish, 0 Bearish, 1 Neutral. Strongest signal: NOTE → 5/10 (55% confidence).

📊 Affected Assets (1)

NOTE
Neutral 🤖 55%
📅 Short-term 🌍 US · Explicit

Q3 2026 adjusted EBITDA rose 65% to $3.6 million, in line with guidance, and net loss narrowed 76% to $5.9 million, with FY26 guidance reaffirmed — supportive for the stock. But this came from deep cost cuts (opex down 39%) while ARR fell about 14% pro forma to $67.7 million and TTM net revenue retention was only 79%, so profitability is improving on a shrinking base, which offsets the positives.

Catalysts
  • • Q3 2026 adjusted EBITDA of $3.6 million, up 65% from $2.2 million and in line with guidance
  • • Net loss narrowed to $5.9 million from $24.9 million a year ago
Risk Factors
  • • ARR declined about 14% pro forma to $67.7 million and subscription revenue fell 13% pro forma
  • • Trailing twelve month net revenue retention of only 79% signals continued customer attrition

🧭 Full analysis of these assets

🎯 Key Takeaways

  • Adjusted EBITDA reached $3.6 million in Q3 2026, up 65% from $2.2 million in the prior-year period.
  • Net loss narrowed significantly to $5.9 million, compared to a $24.9 million loss in Q3 2025.
  • Total operating expenses decreased 39% year-over-year to $19.7 million.
  • Pro forma annual recurring revenue (ARR) declined 14% to $67.7 million, with trailing twelve-month net revenue retention at 79%.
  • The company reaffirmed its FY26 revenue guidance of $74 to $76 million and adjusted EBITDA of $8 to $10 million.

📝 Executive Summary

FiscalNote Holdings reported Q3 2026 revenue of $18.7 million, with adjusted EBITDA climbing 65% to $3.6 million as the company aggressively reduced operating expenses by 39%. Despite improved profitability, the firm faces a shrinking revenue base, with pro forma annual recurring revenue falling 14% to $67.7 million and trailing twelve-month net revenue retention at 79%.

❓ FAQ

Did FiscalNote beat or miss its Q3 guidance?

Revenue of $18.7 million was within the guidance range when adjusted for the FrontierView divestiture, and adjusted EBITDA of $3.6 million was in line with the roughly $3.5 million guided.

Why is the business shrinking if profitability improved?

Costs fell 39% year over year, but annual recurring revenue dropped about 14% pro forma and trailing twelve month net revenue retention was 79%, meaning the company is cutting its way to profitability while customers decline.