FiscalNote Holdings Inc. (NYSE:NOTE) agreed to sell its Australian subsidiary, TimeBase, to Thomson Reuters Corporation (NASDAQ:TRI) for $6.5 million.
FiscalNote acquired TimeBase in 2021, bringing Australian legislative data services to its portfolio for legal professionals. Operating largely apart from FiscalNote's core customer base, TimeBase contributed just $1.3 million to the company's $120.3 million in 2024 GAAP revenue.
The divestiture is part of FiscalNote's effort to streamline operations, reduce debt, and refocus on its core strengths—particularly the enhanced PolicyNote platform, which will continue serving clients in the Australian market. Proceeds from the sale will be used to pay down the company's senior-term loan.
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Despite the financial impact of the divestiture, FiscalNote reaffirmed its full-year 2025 guidance, projecting revenue of $94 to $100 million (versus the consensus of $122.34 million) and adjusted EBITDA between $10 and $12 million. Management pointed to operational efficiencies and a more concentrated business model as drivers of sustained performance.
"This divestiture is another clear step in sharpening our strategic focus, improving our capital structure, and accelerating our path to positive free cash flow," said Josh Resnik, CEO and President of FiscalNote.
Thomson Reuters held Cash and cash equivalents of $1.37 billion as of March 31.
Price Action: NOTE shares are trading higher by 3.26% at 62 cents premarket at the last check Monday.
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