DefaultAug 10, 2026, 05:12 PM
FiscalNote Faces Going Concern Doubt, Defaults on Debt Covenants
AI Summary
FiscalNote Holdings, Inc. reported substantial doubt about its ability to continue as a going concern, citing significant financial deterioration and multiple debt covenant breaches. The company's Class A common stock and warrants were delisted from the NYSE, triggering defaults on its Subordinated Notes, and it failed to meet its Senior Term Loan Adjusted EBITDA covenant. For the six months ended June 30, 2026, FiscalNote's net loss widened to $(71.4) million on declining revenues of $39.6 million, and it recorded a $54.7 million goodwill impairment.
Key Highlights
- Substantial doubt raised about FiscalNote's ability to continue as a going concern.
- Class A common stock and warrants delisted from NYSE on April 13, 2026, triggering defaults on Subordinated Notes.
- Failed 2025 Senior Term Loan minimum Adjusted EBITDA covenant for the twelve months ended June 30, 2026.
- Net loss widened to $(71.4) million for the six months ended June 30, 2026, from $(17.5) million year-over-year.
- Total revenues decreased to $39.6 million for the six months ended June 30, 2026, from $50.8 million year-over-year.
- Recorded $54.7 million goodwill impairment for the six months ended June 30, 2026.
- Negative working capital of $(135.0) million (excluding cash and short-term investments) at June 30, 2026.
- Total stockholders' equity decreased to $274 thousand at June 30, 2026, from $61.95 million at December 31, 2025.
Price Impact
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