Shares of FiscalNote Holdings tumbled 10.7% to $0.13 on August 7, pinned near the bottom of a narrow $0.12–$0.15 trading band that has defined the stock since late July — a range that reflects deep investor unease heading into and now just past its Q2 2026 earnings report. FiscalNote at $0.13: Can a $3.5 Million Company With $88 Million in Revenue Cut Its Way Back From the Brink?
Shares of FiscalNote slid 10.7% to $0.13, continuing to churn inside a punishing $0.12–$0.15 band as investors brace for the company's Q2 2026 earnings report. The drop is not a sector story — broader software stocks are firmer — but rather a reflection of company-specific distress that has left the AI-driven policy intelligence firm valued at roughly the price of a candy bar per share.
• Kicked Off the NYSE, Now Stranded on the OTC
On March 25, 2026, FiscalNote received notice it no longer met the NYSE's requirement to maintain an average closing price of at least $1.00 over 30 trading days.
The delisting became effective April 13, 2026.
Its shares now trade on the OTC market, which typically reduces trading liquidity and index inclusion potential. For shareholders, that means fewer institutional buyers, wider bid-ask spreads, and a stock that many fund mandates simply cannot own.
• The Balance Sheet Is Upside Down
The company has $25.8 million in cash against $145 million in debt, leaving a net debt position of roughly $119 million — or -$4.08 per share.
After the delisting, FiscalNote secured short-term forbearance from key subordinated creditors on defaults under convertible debt, temporarily easing pressure on its capital structure. That buys time, not a solution. Over the trailing twelve months, operating cash flow was -$11.7 million and free cash flow was -$18.6 million.
• Revenue Guidance Looks Stable, but the Market Cap Is Absurd
Management reaffirmed full-year 2026 revenue guidance of $80–$83 million and adjusted EBITDA of $14–$16 million.
Q2 was guided to $19.5–$20.5 million in revenue. Yet FiscalNote's market capitalization sits at just $3.4 million — a fraction of one quarter's sales — underscoring how severely the market discounts the equity beneath its debt load.
• Cost Cuts Are Real, but So Are the Cancellations
The company implemented a 25% workforce reduction and a 19% cut in cash operating costs to bolster margins. However, management acknowledged "higher-than-normal cancellations" in Q1 2026 from economic headwinds, budget constraints, and customer dissatisfaction with legacy systems. Until retention stabilizes on the new platform, cost cuts alone cannot reverse the trajectory. The earnings report — expected imminently — will test whether restructuring math is finally catching up to operating reality.