FiscalNote Holdings Inc (NOTE) 2025 Q2 法說會逐字稿

Good afternoon. My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the FiscalNote Holdings Incorporated second-quarter 2025 financial results conference call. (Operator Instructions)

午安.我叫 Regina，今天我將擔任您的會議主持人。現在，我歡迎大家參加 FiscalNote Holdings Incorporated 2025 年第二季財務業績電話會議。（操作員指示）

With that, I would now like to turn it over to the company to begin the conference.

好了，現在我想將會議交給公司開始。

Good evening. My name is Bob Burrows, Investor Relations for FiscalNote; and we are pleased you all could join us. The purpose of today's call is to discuss FiscalNote's second-quarter 2025 financial results and guidance for both the full year and third quarter of 2025.

晚安.我叫 Bob Burrows，是 FiscalNote 的投資人關係部成員；我們很高興大家能加入我們。今天電話會議的目的是討論 FiscalNote 2025 年第二季的財務業績以及 2025 年全年和第三季的指導。

Joining me with prepared comments are Josh Resnick, CEO and President; and Jon Slabaugh, CFO and Chief Investment Officer. Other members of the senior management team will be available if needed during the Q&A session that will follow these prepared comments.

與我一起發表準備好的評論的還有執行長兼總裁 Josh Resnick 和財務長兼首席投資長 Jon Slabaugh。如有需要，高階管理團隊的其他成員將在這些準備好的評論之後的問答環節中出席。

Please note today's press release, related current report on Form 8-K, and updated version of the corporate overview presentation are all available on the Investor Relations portion of the company website.

請注意，今天的新聞稿、8-K 表格的相關當前報告以及公司概況介紹的更新版本均可在公司網站的投資者關係部分查閱。

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.

在重要事項方面，請注意以下事項。在本次電話會議中，我們可能會做出某些與我們的業務相關的聲明，根據聯邦證券法，這些聲明屬於前瞻性聲明。這些聲明並非對未來績效的保證，而是受各種風險和不確定性的影響。

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.

我們的實際結果可能與任何前瞻性陳述中反映的預期有重大差異。有關可能影響我們實際結果的重大風險和重要因素以及今天的收益報告中討論的風險和其他重要因素的討論，請參閱我們的 SEC 文件，該文件可在我們公司網站或美國證券交易委員會的 EDGAR 系統上取得。

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.

此外，本次電話會議也將討論非公認會計準則財務指標。請參閱我們的收益報告中的表格或公司概況介紹的更新版本，以了解這些指標與最直接可比較的 GAAP 財務指標之間的對應關係。

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.

最後，我們使用關鍵績效指標或 KPI 來評估我們業務的績效。這些包括年度經常性收入（ARR）和淨收入保留（NRR）。

With that I'd like to turn the call over to FiscalNote's CEO and President, Josh Resnick. Josh?

我想將電話轉給 FiscalNote 的執行長兼總裁 Josh Resnick。喬希？

Thank you, Bob, and thanks to everyone joining us today. I'm pleased to be here to share FiscalNote's second-quarter 2025 results and update you on the progress we've made on our strategic priorities.

謝謝你，鮑勃，也謝謝今天加入我們的每個人。我很高興在這裡分享 FiscalNote 2025 年第二季的業績，並向您介紹我們在策略重點方面的進展。

We remain committed to the disciplined approach that has served us well, managing the business with rigor and focus. Our three core objectives remain the same: one, consistent expansion of adjusted EBITDA margin; two, managing the company's balance sheet and achieving positive free cash flow; three, building a durable foundation for profitable growth.

我們將繼續堅持行之有效的嚴謹方法，以嚴謹和專注的態度管理業務。我們的三個核心目標始終如一：一、持續擴大調整後EBITDA利潤率；二、管理好公司資產負債表，實現正的自由現金流；三、建立持久的獲利成長基礎。

As I've said on past calls, I'll walk you through where we stand on each, touching briefly on the first two and then focusing mainly on the company's growth. First, adjusted EBITDA.

正如我在過去電話會議中所說的那樣，我將向大家介紹我們在各個方面的立場，簡要介紹前兩個方面，然後主要關注公司的成長。首先，調整後的EBITDA。

We delivered adjusted EBITDA of $2.8 million in Q2, exceeding guidance. This represents an adjusted EBITDA margin of 12%, an increase compared to 4% on a pro forma basis in the same period last year. This improvement reflects the ongoing benefits of our cost discipline, sharper prioritization of core growth initiatives, and improving operating leverage. We expect to continue to expand margins over the long term as these improvements come out.

我們第二季的調整後 EBITDA 達到 280 萬美元，超出預期。這意味著調整後的 EBITDA 利潤率為 12%，與去年同期的 4% 相比有所增長。這項改善反映了我們成本控制、核心成長計畫的更優先排序以及營運槓桿的提高所帶來的持續效益。隨著這些改進的出現，我們預期利潤率將長期持續擴大。

As adjusted EBITDA margins further expand, our path to positive free cash flow remains clear. So with that, I'll turn to our second core objective, management of the balance sheet and achieving positive free cash flow.

隨著調整後的 EBITDA 利潤率進一步擴大，我們實現正自由現金流的道路依然清晰。因此，我將轉向我們的第二個核心目標，即管理資產負債表和實現正自由現金流。

Managing the company's indebtedness, as well as achieving and sustaining positive free cash flow, remain among our highest priorities. Yesterday, we announced a substantial refinancing of our senior term loan provided exclusively through funds managed by MGG Investment Group.

管理公司的債務以及實現和維持正的自由現金流仍然是我們的首要任務之一。昨天，我們宣布對我們的高級定期貸款進行大規模再融資，該再融資完全透過 MGG 投資集團管理的基金提供。

Importantly, MGG is providing a new facility which will not mature until 2029. MGG conducted thorough diligence before making its commitment, including a deep review of FiscalNote's operational performance, market position, and strategic plans. And I'm especially pleased to welcome MGG as our new long-term capital partner.

重要的是，MGG 提供的新設施要到 2029 年才能成熟。MGG 在做出承諾之前進行了徹底的盡職調查，包括深入審查 FiscalNote 的營運表現、市場地位和策略計畫。我特別高興地歡迎 MGG 成為我們新的長期資本合作夥伴。

Achieving positive free cash flow continues to be a primary focus of ours, and we are confident in our approach and our path. As a reminder, we have made significant progress towards positive free cash flow as we have rightsized the business.

實現正的自由現金流仍然是我們的首要關注點，我們對我們的方法和道路充滿信心。提醒一下，隨著我們調整業務規模，我們在實現正自由現金流方面取得了重大進展。

Over the traveling 12 months, we have improved free cash flow by more than $68 million compared with the same period two years prior. Our cash interest expense will increase slightly with this refinance by less than $2 million annually due to the higher balance on the new senior term loan.

在過去的 12 個月中，與兩年前同期相比，我們的自由現金流增加了 6,800 多萬美元。由於新的高級定期貸款餘額較高，此次再融資後我們的現金利息支出將每年略有增加，增幅不到 200 萬美元。

But because we continue to streamline our operations, this incremental interest expense is more than offset. And therefore, our accelerated path to positive free cash flow remains unchanged.

但由於我們持續精簡運營，這筆增量利息支出已被抵銷。因此，我們加速實現正自由現金流的路徑保持不變。

Our third core objective relates to growth and commercial momentum, and I'll turn to that now. Revenue for the quarter came in at $23.3 million, above the guidance midpoint, and we are reaffirming our full year guidance. Our performance in Q2 reflects both the company's continued transition as well as encouraging signs of momentum.

我們的第三個核心目標與成長和商業動能有關，現在我就來談談這件事。本季營收為 2,330 萬美元，高於預期中位數，我們重申全年預期。我們第二季的業績既反映了公司的持續轉型，也反映了令人鼓舞的勢頭。

As expected, ARR growth has not yet resumed. This is consistent with what we've said to expect in the first half of 2025. We've previously discussed the unacceptable execution challenges that impacted the start of the year, and in a moment, I'll discuss some of the improvements we're seeing in our pipeline and sales metrics following the swift operating changes we made as a result.

正如預期的那樣，ARR 成長尚未恢復。這與我們對 2025 年上半年的預期一致。我們之前討論過影響年初的不可接受的執行挑戰，稍後我將討論我們在做出快速營運變革之後在通路和銷售指標中看到的一些改進。

Those challenges, together with the impact of the known customer retention and expansion issues in our legacy products, as well as atypical instability in the US federal sector, have contributed to the organic ARR and revenue decline. We expect better from the business in the future, and we continue to remain encouraged by the trajectory of our pipeline and the tangible progress in execution.

這些挑戰，加上我們傳統產品中已知的客戶保留和擴展問題的影響，以及美國聯邦部門的非典型不穩定性，導致了有機 ARR 和收入的下降。我們期望未來的業務會更好，並且我們繼續對我們的管道軌跡和執行中的實際進展感到鼓舞。

What are we seeing that gives us that confidence? We continue to see strong demand for our products, and that demand is now translating into improvements in new logo sales.

我們看到的是什麼給了我們這樣的信心？我們繼續看到對我們產品的強勁需求，而這種需求現在正在轉化為新標誌銷售的成長。

Our top of funnel metrics remain strong. Inbound leads for our policy products are up more than 20% year over year, and our corporate new logo pipeline was 45% higher at the end of Q2 than it was at the end of Q1.

我們的漏斗頂部指標依然強勁。我們的保單產品的入站線索同比增長了 20% 以上，並且我們公司新標誌管道在第二季度末比第一季末高出了 45%。

I spoke to some of these top-of-funnel trends at our last earnings call in May, and I noted it would take time to see these improvements reflected in new logo sales. Well, we're now seeing exactly that.

我在 5 月的上次收益電話會議上談到了一些頂級趨勢，並指出這些改進需要一段時間才能反映在新標誌的銷售中。嗯，我們現在看到的正是如此。

Quarter over quarter, we saw an improvement of 400 basis points in corporate win rates from Q1 to Q2, as well as a significant increase in average contract value, especially with our largest corporate customers where we've seen high demand for our new global data packages. And we are continuing to see customers vote with their wallets in the form of multi-year commitment.

與上一季相比，第二季我們的企業中標率提高了 400 個基點，平均合約價值也顯著增加，尤其是我們最大的企業客戶對我們的新全球資料包的需求很高。我們繼續看到客戶以多年承諾的形式用錢包投票。

As was the case in Q1, in Q2, on a year-over-year basis, we more than doubled the rate at which our new private sector customers are signing on to multi-year commitments for our policy data. This demonstrates the confidence and conviction our customers have, and it should translate directly into the gross retention improvements in 2026 cutting straight to the heart of our greatest growth challenge.

與第一季的情況一樣，在第二季度，與去年同期相比，我們新的私部門客戶簽署多年期政策數據承諾的比例增加了一倍以上。這顯示了我們的客戶擁有的信心和信念，並且它將直接轉化為 2026 年的總保留率提高，直擊我們最大的成長挑戰的核心。

In addition to strong commercial demand and multi-year commitments, we're seeing clear evidence that PolicyNote is driving the levels of engagement that we expect will fuel gross retention and net retention over time. In June, we announced the PolicyNote now has more daily active users than our legacy FiscalNote platform, a major milestone in our transformation.

除了強勁的商業需求和多年承諾之外，我們還看到明顯的證據表明，PolicyNote 正在推動參與度的提高，我們預計這將隨著時間的推移推動總留存率和淨留存率的提高。6 月，我們宣布 PolicyNote 現在的每日活躍用戶數量超過了我們原有的 FiscalNote 平台，這是我們轉型過程中的一個重要里程碑。

Core engagement metrics, such as search frequency and use of the AI assistance, both of which I've discussed before, remain strong. And now, the PolicyNote has been in the market for just over six months, we can also begin looking at how usage trends develop over time. The pattern is encouraging.

核心參與度指標（例如搜尋頻率和人工智慧輔助的使用）（我之前已經討論過）仍然保持強勁。現在，PolicyNote 上市剛剛六個多月，我們也可以開始觀察使用趨勢是如何隨時間發展的。這種模式令人鼓舞。

A few weeks into a new customer engagement, usage begins to rise steadily, with the average customer using the platform roughly 30% more at the end of their first quarter than at the midpoint. This indicates that users are finding value in the platform, embedding PolicyNote in their workflow, and becoming habitual users. This is a strong indicator of customer health and something that we expect will translate into improvements in gross retention over time.

在與新客戶接觸幾週後，使用量開始穩定上升，第一季末的平均客戶使用平台的次數比中期高出約 30%。這表明用戶正在發現該平台的價值，將 PolicyNote 嵌入到他們的工作流程中，並成為習慣用戶。這是客戶健康狀況的有力指標，我們預計隨著時間的推移，這將轉化為總保留率的提高。

We're continuing to add new features and enhancements to PolicyNote at a rapid pace. In Q2 alone, we delivered more than 10 major updates, including AI-powered capabilities for legislative drafting and bill outlooks, significant upgrades to our AI alerts and AI assistance, and a new onboarding flow designed to drive engagement from the very beginning of the user experience.

我們正在繼續快速地為 PolicyNote 新增功能和增強功能。光是第二季度，我們就發布了 10 多項重大更新，包括用於立法起草和法案展望的人工智慧功能、人工智慧警報和人工智慧輔助的重大升級，以及旨在從用戶體驗一開始就推動參與度的全新入職流程。

These improvements are having tangible impacts. For example, new PolicyNote customers are now setting alerts, which we consider to be a high-value customer activity, far sooner after account activation than on our legacy platform.

這些改進正在產生實際的影響。例如，新的 PolicyNote 客戶現在可以設定警報，我們認為這是一項高價值的客戶活動，而且在帳戶啟動後比在我們的舊平台上要快得多。

So we believe that this consistent, visible investment in PolicyNote inspires customer confidence and deepens customer engagement, which we expect will be the cornerstone for stronger customer retention and greater expansion opportunities through cross-sell and up-sell in the future.

因此，我們相信，對 PolicyNote 的持續、明顯的投資能夠激發客戶信心並加深客戶參與度，我們預計這將成為未來透過交叉銷售和追加銷售實現更強的客戶保留和更大擴展機會的基石。

What does all this mean for FiscalNote's future growth? Top of funnel and new logo sales are trending well. The challenge continues to be gross and net retention on our legacy product suite for the reasons that I've discussed a number of times. But we believe we have the right solution, PolicyNote.

這一切對於 FiscalNote 的未來發展又意味著什麼？漏斗頂部和新標誌的銷售趨勢良好。由於我多次討論過的原因，我們遺留產品套件的毛留存率和淨留存率仍然是一個挑戰。但我們相信我們有正確的解決方案，PolicyNote。

And we expect that over time, as we continue to add more datasets, features, and customers to PolicyNote, a process we've said would take time, we will see retention improve and ARR and revenues return to growth.

我們預計，隨著時間的推移，隨著我們繼續在 PolicyNote 中添加更多的資料集、功能和客戶（我們說過這個過程需要時間），我們將看到保留率提高，ARR 和收入恢復成長。

Migration of PolicyNote continues to go well and is ahead of schedule, and we expect to deprecate at least one large legacy platform this calendar year. So we're on the right track. We're moving expeditiously, and we continue to believe that with continued progress, we'll see ARR growth resume in the second half of this year and then accelerate further in 2026 and beyond.

PolicyNote 的遷移工作進展順利，並且提前完成了計劃，我們預計今年將淘汰至少一個大型遺留平台。所以我們走在正確的道路上。我們正在迅速行動，我們仍然相信，隨著持續的進步，我們將在今年下半年看到 ARR 成長恢復，然後在 2026 年及以後進一步加速。

In summary, in Q2 and recent days, we have expanded and adjusted EBITDA margins, announced the refinancing of our senior term loan and continued building paths to sustain positive free cash flow, and continue to strengthen PolicyNote and accelerate product innovation. And we saw continued acceleration of key sales metrics.

總而言之，在第二季和最近幾天，我們擴大並調整了 EBITDA 利潤率，宣布對我們的高級定期貸款進行再融資，並繼續建立維持正自由現金流的途徑，並繼續加強 PolicyNote 並加速產品創新。我們看到關鍵銷售指標持續加速成長。

While the first half of 2025 has been a period of transition, we are executing with focus and intensity. Our product-led strategy is working, our operational discipline is holding, and the building blocks for long-term profitable growth are firmly in place. We remain confident in our ability to deliver on our full-year guidance and create meaningful shareholder value in the years ahead.

雖然 2025 年上半年是過渡期，但我們正在集中精力、全力執行。我們的產品主導策略正在發揮作用，我們的營運紀律正在堅持，長期獲利成長的基礎已經牢固建立。我們仍然有信心在未來幾年實現全年目標並創造有意義的股東價值。

With that, I'll turn it over to Jon to walk through the financials in more detail. Jon?

說完這些，我會把話題交給喬恩，讓他更詳細地介紹一下財務狀況。喬恩？

Thank you, Josh. Good evening, and thank you for joining FiscalNote's second-quarter 2025 conference call.

謝謝你，喬希。晚上好，感謝您參加 FiscalNote 2025 年第二季電話會議。

We are pleased to announce that we came in above the midpoint of our guidance range on revenue and exceeded guidance on adjusted EBITDA for the quarter. We are also reaffirming our full-year forecast, evidence that our product-led growth strategy and disciplined operating approach is on track and gaining momentum.

我們很高興地宣布，本季我們的營收超過了預期範圍的中點，調整後的 EBITDA 也超過了預期。我們也重申了全年預測，證明我們的產品主導型成長策略和嚴謹的營運方式正在步入正軌並獲得發展動力。

On top of that, our recent refinancing significantly expanded our runway and operational flexibility. In that regard, yesterday, we announced that FiscalNote entered into definitive agreements to refinance our senior debt and restructure substantially all of our subordinated debt. This series of transactions will provide FiscalNote with a clear long-term runway and operating flexibility to execute on driving efficient product-led growth.

除此之外，我們最近的再融資大大擴展了我們的跑道和營運靈活性。在這方面，昨天，我們宣布 FiscalNote 已達成最終協議，為我們的優先債務進行再融資，並重組我們幾乎所有的次級債務。這一系列交易將為 FiscalNote 提供清晰的長期發展路徑和營運靈活性，以實現高效的產品主導型成長。

These transactions are scheduled to close in mid-August, subject to customary closing conditions. Upon closing, we will replace our current senior credit facility with a new $75 million senior secure term loan with the maturity extended to 2029. This new loan is supported exclusively by funds managed by MGG Investment Group.

這些交易預計於 8 月中旬完成，但需滿足慣例成交條件。交易完成後，我們將以一筆新的 7,500 萬美元優先擔保定期貸款取代目前的優先信貸額度，貸款期限延長至 2029 年。這筆新貸款完全由 MGG 投資集團管理的基金支持。

Excess proceeds from the new facility, together with new subordinated convertible debt, will be used to pay off or refinance certain existing subordinated debt, including an amendment to our largest long-term subordinated creditor to extend the maturity of its remaining balance to 2029.

新貸款的超額收益，連同新的次級可轉換債務，將用於償還或再融資某些現有的次級債務，包括對我們最大的長期次級債權人的修訂，將其剩餘債務的到期日延長至 2029 年。

In aggregate, this transaction serves as an important step for FiscalNote and for our ongoing efforts to stabilize and strengthen our capital structure. While we accelerate execution of the product-led growth strategy, the transactions provide additional time to realize the full potential of the PolicyNote platform and manage our capital structure, supporting management's commitment to generating sustainable levels of growth, profitability, and positive free cash flow.

總的來說，這筆交易對於 FiscalNote 以及我們持續穩定和加強資本結構的努力是重要的一步。在我們加快執行產品主導的成長策略的同時，這些交易提供了額外的時間來充分發揮 PolicyNote 平台的潛力並管理我們的資本結構，支持管理層致力於實現可持續的成長、盈利能力和正的自由現金流。

In light of the timing of these transactions, there are a few customary additional disclosures required in our 10-Q filing. We plan to file a Form 12b-25 to extend the filing deadline for the second quarter 2025 Form 10-Q. This will give us time to finalize the additional disclosures.

鑑於這些交易的時間，我們的 10-Q 文件中需要進行一些常規的額外揭露。我們計劃提交 12b-25 表格，以延長 2025 年第二季 10-Q 表格的提交截止日期。這將給我們時間來完成額外的披露。

We plan to file our 10-Q by August 18. Absent this transaction, we otherwise would have filed on time. Recall that we took a similar step earlier this year upon the closing of the divestiture of Oxford Analytica and Dragonfly, and we successfully filed our Form 10-K under similar circumstances.

我們計劃在 8 月 18 日之前提交 10-Q 表。如果沒有這筆交易，我們本來就會準時提交申請。回想一下，我們在今年稍早完成對 Oxford Analytica 和 Dragonfly 的剝離後也採取了類似的舉措，並且在類似情況下成功提交了 10-K 表格。

With that as a backdrop, let me dive into some of the key drivers behind our second-quarter financial results. Total revenue for Q2 2025 was $23.3 million, above the midpoint of our forecast of $21 million to $23 million. When compared to the prior year, revenue was $6 million lower due primarily to the divestiture of Aicel in October of 2024 and Oxford Analytica and Dragonfly at the end of Q1 2025.

在此背景下，讓我深入探討我們第二季財務表現背後的一些關鍵驅動因素。2025 年第二季的總收入為 2,330 萬美元，高於我們預測的 2,100 萬美元至 2,300 萬美元的中位數。與前一年相比，收入減少了 600 萬美元，主要原因是 2024 年 10 月剝離了 Aicel，2025 年第一季末剝離了 Oxford Analytica 和 Dragonfly。

Subscription revenue, which remains the cornerstone of our business, was $21.4 million for the quarter, $5.7 million lower, again, largely due to the divestitures. Subscription revenue accounted for 92% of total revenues, consistent with our historical trend.

訂閱收入仍然是我們業務的基石，本季為 2,140 萬美元，減少了 570 萬美元，這同樣主要是由於資產剝離。訂閱收入佔總收入的92％，與我們的歷史趨勢一致。

On a pro forma basis, after adjusting for the impact of the Aicel, Oxford Analytica, and Dragonfly divestitures, Q2 2025 subscription revenue was $1.8 million lower than the prior year, indicating that we are still working through our transition to PolicyNote from the legacy FiscalNote platform. As we roll out the new PolicyNote platform, we expect to return to stable, consistent, top-line growth, something we anticipate starting over the next two quarters.

以備考基礎計算，在調整了 Aicel、Oxford Analytica 和 Dragonfly 資產剝離的影響後，2025 年第二季度的訂閱收入比上一年減少了 180 萬美元，這表明我們仍在努力從傳統的 FiscalNote 平台過渡到 PolicyNote。隨著我們推出新的 PolicyNote 平台，我們預計將恢復穩定、持續的營收成長，我們預計這將在未來兩個季度開始。

Turning to our key performance metrics. As of Q2 2025, annual recurring revenue was $85.9 million versus $93.6 million in 2024 on a pro forma basis, a decline of $7.7 million. As you've heard from Josh earlier, this was expected and is unacceptable performance for the business.

轉向我們的關鍵績效指標。截至 2025 年第二季度，年度經常性收入為 8,590 萬美元，而 2024 年的備考基礎為 9,360 萬美元，下降了 770 萬美元。正如您之前從 Josh 那裡聽到的，這是意料之中的，並且對於企業來說是不可接受的表現。

It reflects a combination of the underperformance of new logo and sales funnel execution in Q1, ongoing legacy platform retention issues, and recent reported instability in the public sector. We are focused on improvement and remain very encouraged by the trajectory of our top line and the tangible progress in execution we are seeing.

這反映了第一季新標誌和銷售管道執行情況不佳、遺留平台保留問題持續存在以及最近報道的公共部門不穩定等多種因素的綜合影響。我們專注於改進，並對我們的營業收入的成長軌跡和我們所看到的執行方面的實際進展感到非常鼓舞。

Looking ahead, and as you also heard from Josh, we anticipate ARR growth beginning in the second half of 2025. For the second quarter 2025, net revenue retention was 96% versus 98% in the prior year, reflecting the underperformance at the end of 2024 that we have previously discussed and believe we have addressed going forward. For both ARR and NRR, we expect most metrics to improve by year end 2025, driven by. PolicyNote and other clear signs of a cut in customer engagement that we are seeing.

展望未來，正如您從 Josh 那裡聽到的，我們預計 ARR 成長將從 2025 年下半年開始。2025 年第二季的淨收入保留率為 96%，而上年為 98%，這反映了我們之前討論過的 2024 年底的表現不佳的問題，並且相信我們已經在未來解決了這個問題。對於 ARR 和 NRR，我們預期大多數指標到 2025 年底都會有所改善，主要歸功於：PolicyNote 以及我們看到的其他明顯的客戶參與度下降的跡象。

Principal operating expenses in Q2 2025 continue the trend of year-over-year decreases, reflecting the impact of ongoing efficiency measures initiated in 2023, advanced in 2024 and 2025. Such discipline is essential to our path to expanding operating margins and adjusted EBITDA going forward.

2025 年第二季的主要營運費用持續呈現同比下降的趨勢，反映了 2023 年開始、2024 年和 2025 年推進的持續效率措施的影響。這種紀律對於我們未來擴大營業利潤率和調整後 EBITDA 至關重要。

As we simplified our business model, additional cost savings accrued from the divestitures of Board.org, Aicel, Oxford Analytica, and Dragonfly Intelligence, in addition to savings from sunsetting various non-core products.

隨著我們簡化業務模式，除了淘汰各種非核心產品而節省的成本外，我們還透過剝離 Board.org、Aicel、Oxford Analytica 和 Dragonfly Intelligence 獲得了額外的成本節省。

Looking at expenses in more detail, Q2 2025 costs of revenues decreased by $2 million, or 28% versus prior year. R&D decreased by $900,000, or 29%; and sales and marketing decreased by $2.3 million, or 26%. As for G&A, we saw a slight increase of $100,000, or 1%.

更詳細地看一下費用，2025 年第二季的收入成本比前一年減少了 200 萬美元，即 28%。研發費用減少了 90 萬美元，降幅為 29%；銷售和行銷費用減少了 230 萬美元，降幅為 26%。至於 G&A 費用，我們看到小幅增加了 10 萬美元，即 1%。

Importantly, approximately $5.4 million of non-cash, M&A, and other non-recurring costs were recorded in G&A during the quarter. Excluding these items, G&A would have declined year over year.

重要的是，本季在 G&A 中記錄了約 540 萬美元的非現金、併購和其他非經常性成本。除去這些項目，一般及行政開支將年減。

Taken together, total Q2 2025 operating expense fell by $6.5 million, or 17% versus the prior year. On a pro forma basis, excluding non-cash and other non-recurring charges, the impact of the 2024 divestitures, OpEx decreased by approximately $4 million, or 15%.

整體而言，2025 年第二季的總營運費用比前一年下降了 650 萬美元，降幅為 17%。以備考基礎計算，不包括非現金和其他非經常性費用，2024 年資產剝離的影響使營運支出減少了約 400 萬美元，即 15%。

The gross margin in Q2 2025 was 79%, 200 basis points higher than prior year on a gap basis primarily due to the impact of divested businesses and sunset products. Adjusted gross margin was 86% in Q2 2025, as compared to 85% in the prior year. Both reflect the impact of our disciplined cost management.

2025 年第二季的毛利率為 79%，比前一年高出 200 個基點，主要是由於剝離業務和日落產品的影響。2025 年第二季調整後毛利率為 86%，去年同期為 85%。兩者都反映了我們嚴格的成本管理的效果。

Adjusted EBITDA was a positive $2.8 million, higher than the prior year, above our guidance of approximately $2 million, and the eighth consecutive quarter of positive performance on this important profitability metric. Sustained positive adjusted EBITDA, even after the pro forma impact of the divestitures through June 30, is the direct result of actions that we've taken to improve our operating efficiency, streamline the product portfolio, and reduce the overall cost structure of the business.

調整後的 EBITDA 為正 280 萬美元，高於上年，也高於我們預期的約 200 萬美元，並且連續第八個季度在這一重要盈利指標上取得正增長。即使在截至 6 月 30 日的資產剝離影響之後，調整後的 EBITDA 仍保持正成長，這是我們為提高營運效率、精簡產品組合和降低業務整體成本結構而採取的措施的直接結果。

And as you've heard me say before in past calls, we will drive increasing operating leverage across the business, while steadily expanding our top line through product-led growth. Cash and cash equivalents, including short-term investments at the end of Q2 2025, were $39.2 million, an increase over both the prior year period and the year-end 2024 balance, driven primarily by the influx of cash due to seasonality in the Oxford Analytica and Dragonfly divestitures, which closed on March 31.

正如你們在過去的電話會議中聽到我所說的那樣，我們將推動整個業務的營運槓桿率不斷提高，同時透過產品主導的成長穩步擴大我們的營收。截至 2025 年第二季末，現金和現金等價物（包括短期投資）為 3,920 萬美元，較去年同期和 2024 年年末餘額均有所增加，這主要由於 3 月 31 日完成的 Oxford Analytica 和 Dragonfly 資產剝離導致的季節性現金流入。

Finally, let me talk about guidance. We are reaffirming our full year. 2025 revenue forecast in the range of $94 million to $100 million and adjusted EBITDA in the range of $10 million to $12 million. We are forecasting third-quarter 2025 revenues in the range of $22 million to $23 million and adjusted EBITDA of approximately $2 million. Josh referenced this affirmation speaks to the resilience of our streamlined and effective operating model, and the momentum building is a direct result of our product-led growth strategy.

最後，我講一下指導。我們重申我們對 2025 年全年營收的預測，即 9,400 萬美元至 1 億美元之間，調整後的 EBITDA 預測為 1,000 萬美元至 1,200 萬美元之間。我們預測 2025 年第三季的營收將在 2,200 萬美元至 2,300 萬美元之間，調整後的 EBITDA 約為 200 萬美元。喬希引用這一肯定的言論，表明了我們精簡有效的營運模式的彈性，而這種勢頭的建立是我們以產品為主導的成長策略的直接結果。

In summary, FiscalNote reflects increasing strength and resilience. Our streamlined and disciplined operating plan is focused on innovation that is becoming increasingly valuable to our customers, helping them navigate today's increasingly complex political landscape.

總而言之，FiscalNote 體現出不斷增強的實力和韌性。我們精簡而嚴謹的營運計畫專注於對客戶越來越有價值的創新，幫助他們應對當今日益複雜的政治格局。

As we continue to drive to stabilize the business and return to a path of sustainable growth and customer retention, we are also working to expand operating leverage and therefore adjusted EBITDA, both in absolute dollars and on a margin basis.

在我們繼續努力穩定業務並重回可持續成長和客戶保留的軌道的同時，我們也正在努力擴大經營槓桿，從而提高調整後的 EBITDA（包括絕對美元和利潤率）。

Finally, we prudently manage our cash by controlling CapEx, cash interest expense, and managing our operating expenses, all in the pursuit of accelerating the path to positive free cash flow and therefore sustainable growth.

最後，我們透過控制資本支出、現金利息支出和管理營運費用來審慎管理現金，所有這些都是為了加速實現正自由現金流，從而實現永續成長。

2025 is an important year for this company. And as we move into the second half of 2025, we are encouraged by the clear positive trends we are seeing across our product and customer metrics, which drive everything. And we remain confident that we are making significant progress in re-establishing a clear definitive path for durable growth and sustainable profitability.

2025年對這家公司來說是重要的一年。隨著我們進入 2025 年下半年，我們看到產品和客戶指標呈現明顯的正面趨勢，這推動一切，這令我們感到鼓舞。我們仍然相信，我們在重新建立持久增長和可持續盈利的明確道路方面正在取得重大進展。

That concludes my prepared remarks. I'll turn it over to the operator to begin the question-and-answer session. Operator?

我的準備好的發言到此結束。我將把它交給接線員，開始問答環節。操作員？

(Operator Instructions) Mike Latimore, Northland Capital Markets.

（操作員指示）Mike Latimore，Northland Capital Markets。

Congrats on all the progress this year. Looks good.

恭喜你今年的所有進步。看起來不錯。

You talked about return to ARR growth in the second half. Do you assume a similar contribution from new logo improvement and NRR improvement? Or is one or two of those variables more important to return to ARR growth?

您談到了下半年 ARR 成長的恢復。您是否認為新標誌改進和 NRR 改進會有類似的貢獻？或者這些變數中的一個或兩個對於恢復 ARR 成長更為重要？

So we're seeing good success with new logo, as I discussed just a few moments ago. We're seeing a lot of improvements in pipeline. We're seeing increased win rates. We're seeing ACVs go higher. So we're pleased with progress on new logo.

正如我剛才討論的那樣，我們看到新標誌取得了良好的成功。我們看到管道方面有很多改進。我們看到勝率正在上升。我們看到 ACV 正在上升。因此，我們對新標誌的進展感到滿意。

Of course, we'd like to see continued progress from here as well and continue to grow those ACVs, improve win rates, et cetera. The difference really will come from our retention and expansion. So that's where we're still seeing those challenges with existing relationships on the legacy platforms.

當然，我們也希望看到從現在開始的持續進步，並繼續增加 ACV、提高勝率等等。差異確實來自於我們的保留和擴張。因此，我們仍然看到傳統平台上現有關係所面臨的挑戰。

And we expect to see gross and net retention improve, both as a result of PolicyNote, as we migrate more customers on a PolicyNote; and also with some of the offerings that we have in market. So we've also put out some revamped global data packages as well, which we think will help with expansion revenue, too.

我們預期總留存率和淨留存率將會提高，這既是 PolicyNote 帶來的結果，因為我們將更多的客戶遷移到 PolicyNote 上；也是因為我們在市場上推出了一些產品。因此，我們也推出了一些改進的全球數據包，我們認為這也有助於擴大收入。

We're seeing great success with those, and those are helpful drivers when it comes to ACVs. We're seeing very good, healthy demand for that global data, which is a really strong differentiator for us in market.

我們看到了這些方面的巨大成功，對於 ACV 來說，這些都是有益的驅動力。我們看到對全球數據的需求非常好、很健康，這是我們在市場上的一個真正強大的差異化因素。

So long story short, we want to see continued progress on logo. But the biggest difference maker going forward will be those improvements to gross and net retention that we expect to see.

長話短說，我們希望看到標誌繼續取得進步。但未來最大的變化將是我們預計將看到的毛留存率和淨留存率的提高。

All right. Got it. Makes sense. And then, I think you've -- in terms of additional product enhancements, I think you're planning on some enterprise-level features, I believe, and also integrating the last couple of data sets here. I guess, one, is that a correct assertion? And then, second, if so, is that something planned for this year, or is that going to next year?

好的。知道了。有道理。然後，我認為您 - 就額外的產品增強而言，我認為您正在計劃一些企業級功能，並且還整合了這裡的最後幾個資料集。我想，首先，這是一個正確的斷言嗎？其次，如果是這樣，這是今年的計劃，還是明年的計劃？

Sure. So we are still continuing to enhance PolicyNote, and you can think of it in a couple different ways. So one is continuing to add core data sets and enterprise features.

當然。因此，我們仍在繼續增強 PolicyNote，您可以用幾種不同的方式來思考。因此，人們正在繼續添加核心資料集和企業功能。

When we first launched PolicyNote, it was designed for the most straightforward use cases. And so we're continuing to add some of the more complex enterprise-grade features as we speak. And as we do that, we're migrating more and more enterprise customers onto the platform.

當我們首次推出 PolicyNote 時，它是為最直接的用例而設計的。因此，我們正在繼續添加一些更複雜的企業級功能。隨著我們這樣做，我們正在將越來越多的企業客戶遷移到該平台上。

So we're going to continue that work to build that out so that we can accelerate the migrations, and those migrations are going well and are actually ahead of schedule. We're also continuing to implement new incremental features, things like our tariff tracker, things like some of our more advanced AI features.

因此，我們將繼續進行這項工作，以便我們能夠加速遷移，而且這些遷移進展順利，實際上已經提前完成了計劃。我們也正在繼續實施新的增量功能，例如我們的關稅追蹤器以及一些更先進的人工智慧功能。

Like we have now the ability to actually write draft legislations for you in the platform. And so features that are really accelerating the platform forward, leapfrogging the competition. So we're continuing to build those out as well from an innovation perspective.

就像我們現在有能力在平台上為您撰寫立法草案一樣。這些功能確實加速了平台的發展，超越了競爭對手。因此，我們也將從創新的角度繼續建構這些內容。

We're going to continue the migration over the course of this year and next year. So that's about what you can expect in terms of migrating all of our customers onto the new platform. And like I said, what we're doing in parallel is both some of those core features to facilitate and accelerate those migrations, but also at the same time, launching new innovations to make sure that we're propelling PolicyNote forward in parallel.

我們將在今年和明年繼續遷移。這就是我們將所有客戶遷移到新平台時可以期待的事情。正如我所說的，我們同時在做的是，既要推出一些核心功能來促進和加速這些遷移，也要推出新的創新，以確保我們同時推動 PolicyNote 向前發展。

Great. And I guess just last one for me. In terms of the federal and NGO verticals, can you just give a -- just a little more color on how they're behaving? And has there been any change during the year?

偉大的。我想這對我來說只是最後一個了。就聯邦和非政府組織垂直部門而言，您能否稍微詳細說明一下他們的行為？今年有什麼改變嗎？

Sure. So on federal, as we noted in our comments, we are seeing atypical instability in federal this year, which we've spoken to before, just given all the changes in the federal government. That continues to be something that we monitor.

當然。因此，就聯邦而言，正如我們在評論中指出的那樣，今年我們看到聯邦出現了非典型的不穩定性，我們之前已經談到過，因為聯邦政府發生了許多變化。我們會持續監控此事。

It's a continually shifting landscape. Even you had earlier in the year heavy activity from Doge, which created a lot of volatility, and you still now are seeing just some shifts within federal, both in terms of some areas where there's increased stability and continuing to see relationships and contracts return, but also as there's just continued shifts within the government in terms of their own staffing and how that translates into their needs, licenses, and so on.

這是一個不斷變化的景觀。即使在今年早些時候，總督府的活動十分活躍，造成了許多動盪，但現在我們仍然可以看到聯邦政府內部的一些變化，不僅在某些領域更加穩定，關係和合約不斷恢復，而且政府內部也在不斷變化，包括人員配備以及這些變化如何轉化為政府的需求、許可證等等。

And as we've said before, the instability has obviously introduced some challenges. It also introduces opportunities for us as well. Our solutions, we believe, drive great efficiencies for all our customers, including federal. And so we think that there's a lot of need for our platforms.

正如我們之前所說，這種不穩定性顯然帶來了一些挑戰。它也為我們帶來了機會。我們相信，我們的解決方案能夠為包括聯邦政府在內的所有客戶帶來巨大的效率。因此我們認為我們的平台有很大的需求。

We offer unique proprietary content that's very informative for policymakers. So again, a need there as well. And so that's something we're just continuing to monitor the progress with the federal government throughout the year.

我們提供獨特的專有內容，對政策制定者來說非常有用。所以，再次強調，那裡也有需求。因此，我們全年都會繼續與聯邦政府一起監測此事的進展。

So no significant changes from what we've spoken about before. It's just something that's continuing. NGOs, I would say the same. I assume your question relates to how does federal funding changes impact NGOs.

因此，與我們之前談論的相比，沒有重大變化。這只是正在繼續的事情。對於非政府組織，我也會這麼說。我認為您的問題與聯邦資金變化如何影響非政府組織有關。

And I would say same thing there, where we're still seeing NGOs be actually fairly active with things like advocacy in this type of environment. And again, we have a very strong advocacy platform for them to use as well. And so there's still -- we still see opportunity in that sector.

我想說的是同樣的事情，我們仍然看到非政府組織在這種環境下實際上相當積極地進行宣傳等活動。而且，我們也有一個非常強大的宣傳平台供他們使用。因此，我們仍然看到該領域存在機會。

(Operator Instructions) Zach Cummins, B. Riley Securities.

（操作員指示） Zach Cummins，B. Riley Securities。

This is Ethan Widell calling in for Zach Cummins. I think to start with, it sounds like your retention metrics are starting to turn well. I guess, what levers do you think you need to pull there from here to continue to improve retention? Is that primarily product-led, as they've discussed on the call so far, or is there anything else?

我是 Ethan Widell，為 Zach Cummins 打來的。我認為首先，聽起來你的保留指標開始好轉了。我想，您認為需要採取哪些措施才能繼續提高保留率？正如他們在電話會議上所討論的那樣，這主要是由產品主導的嗎，還是有其他原因？

Sure, Ethan. So of course, from a long-term turning perspective, we've talked mostly about the product and the introduction of PolicyNote. And we are seeing really strong engagement metrics there, which give us a tremendous amount of confidence in how PolicyNote will impact retention in the future.

當然，伊桑。因此，當然，從長遠來看，我們主要談論的是產品和 PolicyNote 的推出。我們看到了非常強勁的參與度指標，這讓我們對 PolicyNote 未來如何影響留任率充滿信心。

And one of the more interesting things, now that PolicyNote has been out in market for six months now, is we're able to look at some of that usage not just as a snapshot and moment, but over time. And so that's where -- I spoke earlier about how we're seeing user engagement increase as the relationship continues. That's a very strong sign and something that poses very well for how PolicyNote will impact our retention going forward.

更有趣的是，PolicyNote 現已上市六個月了，我們不僅可以查看快照和時刻，還可以查看一段時間內的使用情況。這就是——我之前說過，隨著關係的持續，我們看到用戶參與度不斷提高。這是一個非常強烈的訊號，很好地預示著 PolicyNote 將如何影響我們未來的保留。

But there's definitely more to it as well. So as I mentioned, there's also the opportunity -- we've introduced new global data packages, which help with expansion revenue, and it's something that we're seeing great success with, especially within our enterprise segment. And so that's something that we see as something that's connecting very well with customers.

但肯定還有更多的事情。正如我所提到的，也有機會——我們推出了新的全球數據包，這有助於擴大收入，而且我們看到了巨大的成功，特別是在我們的企業領域。因此，我們認為這是與客戶聯繫非常緊密的事情。

We're also seeing great confidence from customers when they buy. So we've talked about multi-years. So again, for the second quarter in a row, we've more than doubled the pace at which we're signing new corporate customers to multi-years for our policy data.

我們也看到顧客在購買時表現出極大的信心。我們已經討論了多年。因此，連續第二個季度，我們與新創企業客戶簽訂多年保單資料協議的速度提高了一倍以上。

That's significant in part because the indicator of confidence that it gives, but also because that will translate directly into gross retention improvements in 2026. So we know just mathematically that that will have an impact as well.

這很重要，部分因為它提供了信心指標，也是因為它將直接轉化為 2026 年整體留存率的提高。因此，我們從數學上知道這也會產生影響。

And then we've also talked about some of the changes that we've made operationally as well. So as Jon and I both mentioned in our remarks, the level of performance that we saw at the end of last year in heading into Q1 was just not acceptable. And so we've made operational changes as well, and that includes in areas that directly impact retention and cross-sell upsell.

然後我們也討論了我們在營運方面所做的一些改變。因此，正如喬恩和我在我們的評論中提到的那樣，我們在去年年底進入第一季時看到的表現水平是不可接受的。因此，我們也做出了營運變革，其中包括直接影響保留和交叉銷售追加銷售的領域。

And so we're excited that the progress we're making operationally there, and we believe that that will have an impact on all of our customer relationships and our ability to retain and grow those relationships over time. So product is certainly important and it's certainly very encouraging what we're seeing there, but it's far from the only thing that we're seeing that will help drive improvements in gross and net retention.

因此，我們對在那裡取得的營運進度感到非常興奮，我們相信這將對我們所有的客戶關係以及我們隨著時間的推移保持和發展這些關係的能力產生影響。因此，產品當然很重要，而且我們所看到的也確實令人鼓舞，但它遠非我們所看到的能夠幫助推動總留存率和淨留存率提高的唯一因素。

All right. That's super helpful. And then maybe to double-click on one of those points, you mentioned doubling the rate of spanning multi-year commitments. I guess, how do you view this as impacting the slope of revenue growth ultimately going forward?

好的。這非常有幫助。然後也許要雙擊其中一個點，您提到將跨越多年期承諾的速度提高一倍。我想，您認為這會對未來營收成長的斜率產生什麼影響？

So the increase in multi-years, as I said, will impact gross retention over time, right? So it's just less of that business coming up for renewal in any given quarter.

因此，正如我所說，多年期的成長將會影響長期的總留存率，對嗎？因此，在任何一個季度中，需要續約的業務量都會減少。

What's most important to me when I think about long-term health is really, like I said, fundamentally, the product and the engagement that we have with our users on a day-to-day basis. That's why I focus so much on that, and I'm so encouraged by it.

當我考慮長期健康時，對我來說最重要的是，正如我所說的，從根本上來說，是我們的產品以及我們與用戶的日常互動。這就是我如此關注這一點的原因，並且我因此而備受鼓舞。

But obviously, with multi-years, the more we can decrease that frequency at which those relationships are coming up for renewal, the more we'll have stability in that business. And our success in new logo will then be additive to what we have instead of essentially replacing what we lose when retention isn't where it should be.

但顯然，隨著合作的進行，我們越能減少續約的頻率，我們的業務就越穩定。而我們在新標誌上取得的成功將會對我們已有的東西起到補充作用，而不是在保留率沒有達到應有水平時從本質上取代我們所失去的東西。

And we have no further questions at this time. I'll hand the call back to Bob Burrows for any closing comments.

目前我們沒有其他問題。我會將電話轉回給鮑伯‧伯羅斯 (Bob Burrows)，讓他發表最後的評論。

Thank you, Regina. That concludes our call this evening. We appreciate everyone's participation on the call, and we look forward to speaking with all of you again in the future. Goodbye.

謝謝你，里賈娜。今晚的通話到此結束。我們感謝大家參加此次電話會議，並期待將來再次與大家交談。再見。

This concludes today's conference call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。