FiscalNote Holdings, Inc.

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Good evening. My name is Bob Burrows, Investor Relations for Fiscal Note, and we are pleased you all could join us. The purpose of today's call is to discuss fiscal notes third quarter 2025 financial results and guidance for both the fourth quarter and full year of 2025. Joining me with prepared comments are Josh Resnick, CEO and President, and John Slabaugh, CFO and Chief Investment Officer. Other members of the senior management team will be available as needed during the Q&A session that will follow these prepared comments. Please note today's press release related current report on Form 8K and updated version of the corporate overview presentation can all be found on the investor relations portion of the company website. In terms of important housekeeping, please take note of the following. During this call, we may make certain statements related to our business that are forward-looking statements under federal securities laws. These statements are not guarantees of future performance, but rather are subject to a variety of risks and uncertainties. Our actual results could differ materially from expectations reflected in any forward-looking statements. For discussion of the material risks and important factors that could affect our actual results, as well as the risks and other important factors discussed in today's earnings release, please refer to our SEC filings, which are available either on our company website or the Securities and Exchange Commission's EDGAR system. Additionally, non-GAAP financial measures will be discussed on this conference call. Please refer to the tables in our earnings release or the updated version of the corporate overview presentation for reconciliation of these measures to the most directly comparable GAAP financial measure. And finally, we use key performance indicators, or KPIs, in evaluating the performance of our business. These include annual recurring revenue, or ARR, and net revenue retention, or NRR. And with that, I'd like to turn the call now over to Fiscal Notes CEO and President, Josh Resnick. Josh?

Thank you, Bob. And thanks to everyone for joining us today. I'm glad to be here to discuss Fiscal Note's third quarter 2025 results and to share an update on the progress we've made on our strategic objectives. We've been clear and consistent as to our priorities. Put simply, we continue to take a disciplined, focused approach to managing the business. And you see that reflected in our adjusted EBITDA profitability, as well as our management of the balance sheet and progress toward free cash flow. This, in turn, enables us to build a durable foundation for long-term profitable growth. In Q3, revenue totaled $22.4 million in line with guidance, and adjusted EBITDA was $2.2 million, exceeding guidance. This translates to a margin of 10% and represents the fifth consecutive quarter of adjusted EBITDA margins at or above 10%, reflecting the ongoing benefits of our cost discipline, sharper prioritization of core growth initiatives, and improving operating leverage. On a pro forma basis, excluding non-cash and other non-recurring charges, and the impact of the 2024 divestitures, OPEX decreased by approximately 8%, reflecting continued cost discipline and operating efficiency. On this front, we're adopting additional automation-based approaches to certain aspects of our operations, which should drive higher productivity across the enterprise and yield incremental improvements to our overall profile over time. During the quarter, we also short up our balance sheet, with maturities extended out by four years, thus strengthening our capital structure and providing long-term flexibility to execute on our strategy. I'll turn to growth and commercial momentum now. This quarter, we stabilized ARR. with a modest quarter-to-quarter increase on a pro forma basis. This signals an initial stabilization of the core business and underscores that the strategic actions we're taking are starting to produce tangible results. Most importantly, it reflects early traction as we continue building a product-led organization positioned for higher levels of long-term growth. I'll explain some of the factors behind the current results. and we'll also walk through how this fits in the context of our transformation of the business. Inbound demand remains strong, indicating a continued need for our solution, as well as specific interest in policy notes, and our teams are maintaining a healthy sales pipeline. Corporate new logo sales also showed continued momentum in Q3. I noted last quarter that win rates among enterprise clients rose 400 basis points quarter over quarter. In Q3, we saw that momentum continue with another 400 basis point improvement in that segment when compared with Q2. Year to date, across all corporate segments, win rates are up 500 basis points overall. And equally important, we're not just winning more, we're winning higher value deals. Average contract values have trended meaningfully upward over the course of the year. And notably, corporate multi-year contracts for our policy data now account for approximately 50% of new logo ARR, up from about 20% in early 2024, a 2.5 times increase that strengthens revenue visibility and is expected to support further improvements in gross retention in 2026. This progress in corporates is especially noteworthy in light of the ongoing volatility in the federal space, including continued disruption this quarter due to the extended government shutdown. Strong corporate performance has helped offset that pressure and should serve as a solid foundation for further growth as conditions in the federal sector stabilize over time. Our product innovation continues to underpin this progress, and in Q3, we released a series of meaningful enhancements to PolicyNote, including AI-powered legislative drafting, social listening to identify early policy signals, upgraded reporting, and AI-generated tariff impact reports. More recently, we launched bill comparison, an AI-driven capability that allows users to instantly redline and compare versions of pending bills, a powerful example of our ability to leverage advanced AI to deliver meaningful incremental value to our users and increasingly move towards automating customer workflows. Year to date, our product team has now launched more than 35 major enhancements to the PolicyNote platform since its launch in January. These continuous improvements are reinforcing PolicyNote as a cornerstone of our ecosystem and a key contributor to strengthening customer engagement and retention. Usage trends on PolicyNote remain overwhelmingly positive across all nature of metrics that we track internally, including the behaviors that indicate high usage frequency, product stickiness, and highly valuable integration into customer workflows. We view these patterns as early indicators of future improvements to gross and net retention. And combined with our increasing success in new logo sales, they're expected to serve as the foundation for durable, long-term growth. This is why we have placed the focus on moving our existing customers onto PolicyNote. And to that end, migration to PolicyNote continues to go well, with the vast majority of accounts using our legacy fiscal note platform having been successfully transitioned to PolicyNote. This will put us in position to have completed the migration from the legacy fiscal note platform by the end of this calendar year as planned. As for our 2025 guidance, John will walk through that in more detail. But importantly, the update we've given for both total revenues and adjusted EBITDA remain within our previous ranges and reflect our current outlook on the business with two months before year end. In summary, we continue to see growing momentum in our corporate pipeline and steady progress in our migration of policy notes, which together provide a clear path to renewed sustainable growth. These results reflect steady execution, disciplined management, and tangible progress against our strategic priorities. While there is still work ahead, the trajectory is positive, and we remain confident in our ability to deliver sustainable growth, expanding profitability, and long-term value for shareholders. With that, I'll turn it over to John to walk through the financials in more detail. John?