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Stock Analysis & ValuationFiscalNote Holdings, Inc. (NOTE)

Previous Close
$1.20
Sector Valuation Confidence Level
Low
Valuation methodValue, $Upside, %
Artificial intelligence (AI)106.628770
Intrinsic value (DCF)5.33343
Graham-Dodd Methodn/a
Graham Formulan/a

Strategic Investment Analysis

Company Overview

FiscalNote Holdings, Inc. (NYSE: NOTE) is a leading technology and data company specializing in AI-driven legal and policy intelligence. Headquartered in Washington, D.C., FiscalNote provides critical insights, workflow automation, and advocacy tools to Fortune 100 companies, government agencies, law firms, and nonprofits. The company leverages artificial intelligence, machine learning, and advanced analytics to transform complex legal and regulatory data into actionable intelligence. Operating in the Information Technology Services sector, FiscalNote addresses the growing demand for real-time policy tracking and compliance solutions in an increasingly regulated global economy. Its proprietary platform helps clients navigate legislative risks, manage stakeholder engagement, and optimize decision-making. With a strong focus on innovation, FiscalNote is well-positioned to capitalize on the expanding market for regulatory technology (RegTech) and government affairs software.

Investment Summary

FiscalNote presents a high-growth opportunity in the RegTech and policy intelligence space, supported by its AI-driven platform and blue-chip client base. The company's $120.3M revenue and positive net income ($9.5M) in FY2023 demonstrate improving fundamentals, though negative operating cash flow (-$5.3M) and high debt ($173M) warrant caution. With a low beta (0.613), the stock may offer defensive characteristics in volatile markets. The lack of dividends reflects reinvestment priorities in technology and market expansion. Key risks include customer concentration, regulatory changes affecting its government clients, and competition from legacy providers and emerging AI startups. The small market cap (~$99M) suggests higher volatility but also potential for outsized gains if execution continues.

Competitive Analysis

FiscalNote competes in the niche intersection of policy intelligence, government affairs software, and regulatory technology. Its primary competitive advantage stems from proprietary AI models trained on legislative data and policy documents, which enable superior predictive analytics compared to manual research services. The company's end-to-end platform combining data, workflow tools, and advocacy features creates switching costs for enterprise clients. However, it faces competition from both specialized policy research firms and broader legal tech providers. FiscalNote's Washington D.C. headquarters provides proximity to policymakers and first-mover advantage in U.S. federal tracking, but international expansion remains challenging against local incumbents. The company's technology stack is more advanced than legacy providers like Bloomberg Government but lacks the scale of diversified competitors like Thomson Reuters. Recent profitability suggests improving unit economics, though R&D spending must remain elevated to maintain its AI edge against well-funded tech entrants.

Major Competitors

  • Thomson Reuters Corporation (TRI): Thomson Reuters dominates legal and regulatory information with its Westlaw and Practical Law platforms. Strengths include unparalleled content breadth, global distribution, and strong brand recognition. However, its legacy systems lack FiscalNote's AI-native architecture and policy-specific workflow tools. TRI's scale allows for cross-selling but may limit innovation agility.
  • Black Knight (now part of Intercontinental Exchange) (BLK): Black Knight provides policy tracking for financial services through its Elite platform. Strong in mortgage/housing regulations but lacks FiscalNote's legislative predictive capabilities. Integration with ICE's data assets post-acquisition creates competitive pressure in financial services verticals.
  • Progress Software Corporation (PRGS): Progress offers regulatory compliance solutions through its Corticon business rules engine. Technical strength in automation but weaker policy domain expertise compared to FiscalNote. More focused on IT departments than government affairs teams.
  • Quorum (Private): DC-based competitor specializing in legislative tracking and advocacy software. Strong grassroots mobilization features but lacks FiscalNote's AI/ML capabilities. Recently acquired by Dataminr, signaling intensified competition in public sector analytics.
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