Core Viewpoint - Wealthfront Corporation is under investigation for potential violations of federal securities laws, particularly concerning misleading statements made during its IPO process [1][3]. Group 1: Company Overview - Wealthfront is an online financial advisor that utilizes automated tools to provide investment and financial advice [2]. - The company completed its initial public offering (IPO) on December 12, 2025, offering over 34 million shares at a price of $14.00 per share [2]. Group 2: Financial Performance - On January 12, 2026, Wealthfront reported its first quarterly results as a public company, revealing net deposit outflows of $208 million, a significant decline from the $874 million inflows during the same period the previous year [4]. - CEO David Fortunato attributed the decline in deposits to falling interest rates and highlighted the strategic importance of Wealthfront's new home-lending business [4]. Group 3: Stock Market Reaction - Following the earnings report, Wealthfront's stock price dropped by $2.12 per share, nearly 17%, from a closing price of $12.59 on January 12, 2026, to $10.47 on January 13, 2026 [4].

Core Insights - FiscalNote Holdings, Inc. has successfully completed the migration of customers from its legacy platform to PolicyNote, an AI-driven policy intelligence platform, marking a significant milestone in its long-term strategy [1][2] Company Strategy - The transition to PolicyNote aims to unify FiscalNote's offerings, providing a more consistent, scalable, and intuitive customer experience by consolidating separate tools into a single software solution [2] - The launch of PolicyNote is central to FiscalNote's product-led growth strategy, which focuses on enhancing customer engagement through an integrated platform [3] Customer Engagement - The migration was completed with minimal customer churn, and there is an increase in customer engagement with PolicyNote [3] - Users have reported that PolicyNote significantly enhances their ability to monitor and respond to legislative developments, with customized dashboards centralizing critical information [3] Performance Metrics - There has been a 252% increase in the portion of customers using PolicyNote on a weekly basis, driven by the integration of AI-generated summaries and analytical tools into daily workflows [5] - The adoption of AI-powered personalized insights, such as Impact Summaries, has led to users generating custom summaries in 34% of search sessions [5] - Advanced analytical workflows, including Bill Comparison and Similar Bills, have seen usage nearly double since their launch [5] Company Overview - FiscalNote is recognized as a leading provider of AI-driven policy and regulatory intelligence solutions, combining proprietary AI technology with comprehensive data to help customers manage political and business risks [4] - The company has been operational since 2013 and serves thousands of customers globally, with offices in North America, Europe, and Asia [4]

WASHINGTON--(BUSINESS WIRE)--FiscalNote Releases "Epstein Unboxed,†a Comprehensive, AI- Enhanced Database Transforming Access to Epstein Investigation Records. ...

WASHINGTON--(BUSINESS WIRE)--FiscalNote Holdings, Inc. (NYSE: NOTE) ("FiscalNote"), a leading provider of AI-driven policy and regulatory intelligence solutions, today announced that members of the senior management team will be participating in the following upcoming investor conference: Northland Capital Growth Conference 2025 - Tuesday, December 16, 2025. FiscalNote will participate virtually and host investor meetings. All related presentations and webcasts, when applicable, will be available on the ...

Core Insights - FiscalNote Holdings, Inc. has launched Impact Summaries, an enhancement to its PolicyNote platform, aimed at providing organization-specific analysis of legislation, regulations, and research documents [1] - The new feature is designed to help organizations navigate the complexities of the policy landscape, enabling them to manage risk and maintain a competitive edge [1] - Impact Summaries leverage AI technology to deliver personalized insights, improving decision-making efficiency for users [1] Company Overview - FiscalNote is a leading provider of AI-driven policy and regulatory intelligence solutions, combining proprietary AI technology with comprehensive data and analysis [1] - The company has been operational since 2013 and serves thousands of customers globally, with offices in North America, Europe, and Asia [1] - FiscalNote's suite of products includes PolicyNote, CQ, Roll Call, and VoterVoice, which are designed to help organizations manage political and business risks effectively [1] Product Features - Impact Summaries provide personalized policy impact analysis, translating complex policy language into actionable insights [1] - The user experience has been enhanced with a redesigned interface, including an "Impact On Your Organization" tab and one-click analysis refresh [1] - Users have greater control and customization options with new "Refine Format" controls, allowing tailored summaries based on layout, length, and specific instructions [1]

Core Insights - FiscalNote is experiencing significant global momentum, particularly with the ongoing adoption of its PolicyNote platform [1] Company Developments - The company has reported an increase in global engagement and adoption rates for its PolicyNote product, indicating strong market demand [1] - FiscalNote's strategic initiatives are focused on expanding its footprint in international markets, which is contributing to its growth trajectory [1] Industry Trends - The trend towards digital policy management solutions is gaining traction, with more organizations recognizing the value of tools like PolicyNote [1] - The increasing complexity of regulatory environments is driving demand for comprehensive policy tracking and analysis tools [1]

Financial Performance - Total revenues for Q3 2025 were $22,429,000, a decrease of 23.8% compared to $29,439,000 in Q3 2024[14] - Subscription revenues decreased to $21,182,000 in Q3 2025 from $27,238,000 in Q3 2024, representing a decline of 22.3%[14] - Operating loss for Q3 2025 was $9,739,000, compared to a loss of $6,811,000 in Q3 2024, indicating a worsening of 42.5%[14] - Net loss for Q3 2025 was $24,855,000, compared to a net loss of $14,935,000 in Q3 2024, reflecting an increase in losses of 66.5%[14] - The company reported a net loss of $42.376 million for the nine months ended September 30, 2025, compared to a net income of $22.9 million for the same period in 2024[21] - For the nine months ended September 30, 2025, the company incurred net losses of $59.0 million, compared to $48.7 million for the same period in 2024[31] - The company reported a net loss of $24,855,000 for the three months ended September 30, 2025, resulting in a basic and diluted loss per share of $(1.73)[164] Assets and Liabilities - Total assets decreased to $273,866,000 as of September 30, 2025, down from $326,197,000 at the end of 2024, a reduction of 16.0%[12] - Current liabilities decreased slightly to $48,547,000 from $51,253,000, a decline of 5.3%[12] - Long-term debt decreased to $125,160,000 from $147,041,000, a reduction of 14.9%[12] - The company’s accumulated deficit increased to $849,275,000 as of September 30, 2025, compared to $806,899,000 at the end of 2024[12] - The company reported a negative working capital balance of $31.3 million (excluding cash and short-term investments) as of September 30, 2025, and an accumulated deficit of $849.3 million[31] Cash Flow and Expenditures - Total cash used in operating activities was $11.164 million for the nine months ended September 30, 2025, compared to $3.950 million for the same period in 2024[21] - The company had capital expenditures of $5.561 million for the nine months ended September 30, 2025, compared to $6.875 million in 2024[21] - The cash, cash equivalents, and restricted cash at the end of the period was $27.328 million, compared to $26.371 million at the end of the same period in 2024[21] - The company improved its cash used in operations by approximately $35.0 million when comparing the twelve months ended September 30, 2025, to the same period in 2023[33] Revenue Sources - Revenues derived from the U.S. Federal Government accounted for 17% of total revenues for the nine months ended September 30, 2025[48] - Subscription revenue for the nine months ended September 30, 2025, was $67,794, down 19% from $84,015 in 2024[56] - North America generated $21,083 in revenue for the three months ended September 30, 2025, compared to $23,073 in 2024, representing a decline of 9%[57] Gains and Losses - The company reported a gain on the sale of businesses amounting to $1,161,000 in Q3 2025[14] - The company recorded a pre-tax gain on the sale of Oxford Analytica and Dragonfly of $15,260, with total cash received of $40,000[63] - The sale of Board.org resulted in a pre-tax gain of $71,599, with cash proceeds of $90,905 received[67] - The company recognized a gain of $634 from the extinguishment of the Third Era Convertible Note during the three and nine months ended September 30, 2025[134] Debt and Financing - The company completed the refinancing of a substantial amount of legacy indebtedness, including the 2025 Senior Term Loan, which contains four financial covenants[34] - The company incurred principal payments of long-term debt totaling $128.353 million for the nine months ended September 30, 2025, compared to $65.781 million in 2024[21] - The company has a minimum cash balance requirement and a minimum adjusted EBITDA requirement as part of the financial covenants for the 2025 Senior Term Loan[82] - As of September 30, 2025, the company had outstanding borrowings on its 2025 Senior Term Loan amounting to $74.5 million, with an interest rate of 12.23% based on SOFR plus 8%[310] Stock and Compensation - The company recognized share-based compensation expenses of $43,000 and $108,000 for the three and nine months ended September 30, 2025, respectively[148] - The company recognized stock-based compensation expenses of $3,599,000 and $10,648,000 for the three and nine months ended September 30, 2025, respectively[156] - The 2022 Employee Stock Purchase Plan allows eligible employees to purchase shares at a discount, with 37,231 shares issued under the plan for the nine months ended September 30, 2025[157] Tax and Regulatory Matters - The effective tax rate for the three months ended September 30, 2025, was (0.94) percent, with a tax benefit of $237 on a pre-tax loss of $25,092[167] - As of September 30, 2025, the Company reported an uncertain tax position totaling $832 related to a deduction for shares distributed for services associated with the payment of convertible debt[169] - The Company recorded an income tax benefit of $46 for the three and nine months ended September 30, 2025, due to changes in U.S. tax law[170] Market and Economic Conditions - The company is exposed to inflation risk, although it does not believe inflation has had a material impact on its financial condition to date[311] - The company's results of operations and cash flows may be adversely affected by fluctuations in foreign currency exchange rates, particularly the Euro and British Pound Sterling[307] - A hypothetical 10% change in foreign currency exchange rates would not have a material impact on the company's cash denominated in foreign currency[307]

Core Insights - FiscalNote Holdings, Inc. reported a quarterly loss of $1.73 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.84, marking an earnings surprise of -105.95% [1] - The company's revenues for the quarter ended September 2025 were $22.43 million, missing the Zacks Consensus Estimate by 0.32%, and down from $29.44 million a year ago [2] - FiscalNote shares have declined approximately 74.2% year-to-date, contrasting with a 15.6% gain in the S&P 500 [3] Financial Performance - Over the last four quarters, FiscalNote has surpassed consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.72 on revenues of $23.69 million, and for the current fiscal year, it is -$2.68 on revenues of $96.91 million [7] Market Outlook - The company's earnings outlook will be crucial for future stock performance, with management's commentary on the earnings call expected to influence investor sentiment [3][4] - The Zacks Industry Rank places Technology Services in the top 38% of over 250 industries, indicating a favorable environment for potential stock performance [8] Estimate Revisions - The trend for estimate revisions for FiscalNote was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold), suggesting the stock is expected to perform in line with the market [6] - Empirical research indicates a strong correlation between near-term stock movements and earnings estimate revisions, which investors can track [5] Competitor Insights - Alithya Group, another company in the same industry, is expected to report quarterly earnings of $0.04 per share, with revenues projected at $89.59 million, reflecting a 9.6% increase from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $22.4 million, aligning with guidance, but $7 million lower compared to the prior year due to divestitures [14] - Adjusted EBITDA was $2.2 million, exceeding guidance, translating to a margin of 10%, marking the fifth consecutive quarter of adjusted EBITDA margins at or above 10% [4][17] - Annual recurring revenue (ARR) was $84.8 million, down from $92.2 million year-over-year, but showed a modest quarter-to-quarter increase of $100,000 [14][15] Business Line Data and Key Metrics Changes - Subscription revenue for Q3 2025 was $21.2 million, accounting for 94% of total revenue, slightly higher than the historical trend of 92% [14] - Corporate multi-year contracts for policy data now account for approximately 50% of new logo ARR, up from about 20% in early 2024, indicating a significant increase in revenue visibility [8] Market Data and Key Metrics Changes - Net revenue retention was 98%, level with the prior year and up 200 basis points over the second quarter on a pro forma basis [15] - The federal sector experienced volatility due to an extended government shutdown, with an estimated impact of $2 million to $3 million for the full year [32][33] Company Strategy and Development Direction - The company is focused on a product-led growth strategy, emphasizing the transition to the Policy Note platform and enhancing customer engagement through product innovation [9][10] - Management highlighted the importance of automation in operations to drive productivity and improve overall efficiency, with expectations for significant improvements in 2026 [25][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable growth and expanding profitability, despite ongoing challenges in the federal sector [11][19] - The company is encouraged by early traction and stabilization in the core business, with a focus on improving gross and net retention through enhanced product offerings [31] Other Important Information - The company updated its full-year revenue guidance to a range of $95-$96 million, with adjusted EBITDA projected to be approximately $10 million [12][18] - Cash and cash equivalents at the end of Q3 2025 were $31.8 million, providing sufficient liquidity to support ongoing operations and growth initiatives [17] Q&A Session Summary Question: Can you provide more color on the increase in average contract values (ACV)? - The increase in ACVs is primarily driven by leveraging global data more effectively, which has extended use cases through the enterprise [21] Question: Has there been any change in churn during the migration to Policy Note? - There has not been any meaningful migration-related churn, with positive experiences reported during the transition [22] Question: What are the expectations for renewed year-over-year ARR growth? - Specific guidance on ARR was not provided, but management is encouraged by the progress and transformation seen through Policy Note [30] Question: Can you quantify the impact of the federal government shutdown? - The estimated overall impact of the shutdown is between $2 million and $3 million for the full year [33]

FiscalNote Powering Better Policy Decisions with AI-Driven Insights CORPORATE OVERVIEW November 6, 2025 © 2025 FiscalNote fiscalnote.com Footnote: Unless otherwise indicated, data presented herein is as of September 30, 2025. 1 Safe Harbor Statement Safe Harbor Statement Certain statements herein may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to future events or FiscalNote's future financial ...