FiscalNote Holdings, Inc. (NYSE:NOTE) is one of the best AI penny stocks to buy right now. On January 14, FiscalNote Holdings, Inc. (NYSE:NOTE) completed the migration of all customers from its legacy FiscalNote platform to its new PolicyNote platform. The company noted that the transition was executed with minimal customer churn. In other words, few, if any, customers left during the migration process. Is FiscalNote (NOTE) One of the Best AI Penny Stocks to Buy Right Now? According to FiscalNote, Policy ...

Core Viewpoint - FiscalNote is significantly expanding its operations into political prediction markets, indicating a strategic move to leverage data analytics in forecasting political outcomes and trends [1] Group 1: Company Expansion - FiscalNote's expansion into political prediction markets aims to enhance its offerings and provide clients with advanced tools for political forecasting [1] - The company is positioning itself to capitalize on the growing interest in political data and analytics, which is becoming increasingly relevant in various sectors [1] Group 2: Market Implications - The entry into political prediction markets reflects a broader trend in the industry where data-driven insights are becoming essential for decision-making in political and business contexts [1] - This move may attract new clients and partnerships, potentially increasing FiscalNote's market share in the political analytics space [1]

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]

Core Insights - FiscalNote has launched "Epstein Unboxed," an AI-enhanced database aimed at improving access to records related to the Epstein investigation [1] Group 1 - The new database is designed to transform how users access and analyze investigation records, leveraging artificial intelligence for enhanced functionality [1] - This initiative reflects a growing trend in the industry towards utilizing AI to streamline data access and improve research capabilities [1]

Core Viewpoint - FiscalNote Holdings, Inc. is actively engaging with investors through participation in the Northland Capital Growth Conference 2025, showcasing its commitment to investor relations and transparency [1]. Group 1: Company Overview - FiscalNote is a leading provider of AI-driven policy and regulatory intelligence solutions, combining proprietary AI technology, comprehensive data, and trusted analysis to help customers manage political and business risk [3]. - The company has been operational since 2013 and has developed solutions that provide critical insights for effective decision-making, giving organizations a competitive edge [3]. - FiscalNote's product suite includes PolicyNote, CQ, Roll Call, VoterVoice, among others, serving thousands of customers globally with offices in North America, Europe, and Asia [3]. Group 2: Upcoming Events - FiscalNote will participate virtually in the Northland Capital Growth Conference 2025 on December 16, 2025, and will host investor meetings during the event [1]. - Presentations and webcasts related to the conference will be accessible on the Events & Presentations section of the FiscalNote investor relations website [1].

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]