The lowered FY26 guidance and continued revenue/ARR declines signal fundamental weakness. Monitor Q3 results for stabilization, but with $106.8M debt maturing within 12 months vs $20.6M cash and only $0.3M equity, liquidity is a pressing concern. The strategic review outcome (relisting or asset sales) is the key catalyst — failure could accelerate distress.
Price Chart
Executive Summary
FiscalNote reported Q2 2026 revenue of $19.6M, in line with guidance, but GAAP EPS of -$1.06 massively missed consensus of -$0.12 due to $19.1M goodwill impairment and $1.8M CEO severance. More critically, full-year 2026 guidance was lowered sharply: revenue from $80-83M to $75-78M and Adj EBITDA from $14-16M to $9-11M, citing federal sector softness and cautious private spending. Revenue declined 16% YoY and ARR fell 12% pro forma, offset only by a sequential NRR improvement to 98%. This is a clear negative inflection.
Key Financial Metrics
Key Facts
- Q2 2026 revenue $19.6M (in line with $19.5-20.5M guidance) but down 16% YoY from $23.3M
- GAAP EPS -$1.06 vs consensus -$0.12 (783% miss) due to $19.1M goodwill impairment and $1.8M CEO severance
- FY26 guidance lowered: revenue cut from $80-83M to $75-78M; Adj EBITDA cut from $14-16M to $9-11M
- Q3 2026 initial forecast: revenue $19-20M, Adj EBITDA ~$3.5M
- ARR declined 12% pro forma to $74.9M; NRR improved to 98% quarterly (from 89% Q1) but TTM NRR still only 81%
- Cash burn continues: cash fell to $20.6M from $26.5M at Q1 end; current maturities of debt $106.8M vs equity $0.3M
- Board still reviewing strategic alternatives including possible relisting and divestitures
Financial Impact
FY26 revenue guidance cut by $5M (6%) and EBITDA guidance cut by $5M (36%) relative to prior outlook; revenue decline 16% YoY
Risk Factors
- Revenue and ARR continue declining, unable to stabilize core business
- Liquidity risk: $106.8M current debt maturities against $20.6M cash and near-zero equity
- Downward guidance revisions could trigger credit events or debt covenant breaches
- Strategic review may not yield a transaction, leaving stock illiquid on OTC
- Macro and federal government spending headwinds persist
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-342623 |
| Document: note-20260810.htm | 0001193125-26-342623 |
| Document: 0001193125-26-342623-index-headers.html | 0001193125-26-342623 |
| Document: 0001193125-26-342623-index.html | 0001193125-26-342623 |
| Document: 0001193125-26-342623.txt | 0001193125-26-342623 |
| 8-K Data (Synthetic) | 0001193125-26-342623 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 2, 2026 7w ago | 8-K | $0.5310 $0.5310 | · 0.00% | ▲ +1.19% | $0.0110 (−97.93%) |
Aug 10, 2026 11w ago | 8-K | $0.0670 $0.0460 | ▲ +31.34% | ▲ +30.28% | $0.0110 (+83.58%) |
Jun 26, 2026 17w ago | 8-K | $0.1270 $0.1200 | ▼ −5.51% | ▼ −5.25% | $0.0110 (−91.34%) |
Jun 24, 2026 17w ago | 8-K | $0.1180 $0.1103 | ▲ +6.53% | ▲ +7.05% | $0.0110 (+90.68%) |
Jun 16, 2026 19w ago | 8-K | $0.1730 $0.0859 | ▲ +50.35% | ▲ +51.92% | $0.0110 (+93.64%) |
US Market Status
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