NOTE Stock Forecast & Price Target

FiscalNote Holdings Inc. has demonstrated significant operational improvements, evidenced by a +400 basis points quarter-over-quarter increase in new logo win rates, an uptick in annual contract values (ACVs), and a doubling of multi-year deal signings compared to the previous year. The sales pipeline has expanded by +45% quarter-over-quarter, accompanied by a +20% year-over-year increase in inbound demand, signaling robust market interest and growth potential. Furthermore, the company has reiterated its fiscal year guidance for the first time after navigating challenges in FY24, indicating a stabilization in core revenue trends and optimism about its newly enhanced PolicyNote AI platform amid ongoing efforts to deleverage.

FiscalNote Holdings Inc has reported a decline in customer retention, with a -200 basis points decrease to 96%, which may raise concerns about long-term customer loyalty despite expectations for improvement driven by multi-year contracts starting in 2026. Additionally, the company's revenue and EBITDA guidance for the third quarter of 2025 indicates stagnation, projecting flat metrics of $22-23 million in revenue and $2 million in EBITDA on a sequential basis. This lack of growth in financial forecasts, combined with potential retention challenges, contributes to a negative outlook on the company's stock.