Tue, May 13, 8:22 PM (39 days ago)
**FiscalNote Holdings, Inc. (NOTE) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $27.5M (Q1 2024: $32.1M), a 14.3% decrease. - **Operating Loss:** $13.8M (Q1 2024: $11.4M), a 20.3% increase. - **Net Loss:** $4.3M (Q1 2024: $50.6M gain), impacted by a $15.7M gain on the sale of Dragonfly and Oxford Analytica. - **Cash Flow:** Positive operating cash flow of $3.3M, driven by cost savings and asset sales. **Profit Margins:** - **Operating Margin:** -50.0% (Q1 2024: -35.6%). - **Net Margin:** -15.8% (Q1 2024: 156.3%). **Cash Flow & Earnings Changes:** - **Operating Cash Flow:** $3.3M (Q1 2024: $2.7M). - **Investing Cash Flow:** $38.3M (Q1 2024: $89.2M), primarily from asset sales. - **Financing Cash Flow:** -$28.8M (Q1 2024: -$71.8M), mainly debt repayments. **Quarterly Performance & Trends:** - **Revenue Decline:** Due to the sale of businesses and reduced customer retention. - **Cost Reduction:** Successful in lowering operating expenses by 5.2%. - **Debt Management:** Reduced debt by $27.1M through asset sales. **Uncertainties & Future Operations:** - **Liquidity:** Negative working capital, relying on debt and asset sales for funding. - **Debt Covenants:** At risk of non-compliance due to financial performance. - **Growth Strategy:** Focus on organic growth, cost savings, and potential acquisitions. **Key Metrics:** - **ARR:** $87.7M (Q1 2024: $107.5M), excluding discontinued products and sold businesses. - **NRR:** 93% (Q1 2024: 96%), indicating customer retention challenges. **Outlook:** - Continued focus on cost savings and strategic investments to drive growth. - Potential for further asset sales or strategic alternatives to maximize stakeholder value. - Uncertainties related to debt covenants, liquidity, and market conditions.