Hello, I want to welcome everyone to Oppenheimer's 28th Annual Technology, Internet, and Communications Conference. I'm thrilled to kick it off for the software lane of the presentations. FiscalNote, we have with us Josh Resnik, who's the CEO, who's going to run through a presentation for the company. When he finishes, we'll come back and we'll do some Q&A. With that, I'd like to pass the floor over to Josh. Thanks, Brian. Appreciate it and appreciate everyone taking the time today. I'm excited to tell you about FiscalNote Holdings. I'm joined by Jon Slabaugh, our CFO, as well as Bob Burrows, our Head of Investor Relations. Let's go ahead and dive in. I'll tell you about the company and a bit about where we are and where we're going. Of course, the usual disclaimers apply. There may be forward-looking statements. You should make sure to read all the disclosures available on our website, as well as in our filings online, including the risks and associated disclosures. Please make sure you do that. I'll tell you first high level who we are, why it matters, and then I'll start to go into some of the details of the business to help you understand where we stand today and how we see ourselves fitting in in the future. We deliver subscription-based access to essential and proprietary policy data, insights, and workflow tools via an AI-driven SaaS platform. It's kind of a mouthful there. Essentially, what we do is we help organizations around the world navigate the risk and opportunity that comes with policy and regulatory change. It's certainly an interesting time today when you think about all the activity in policy and regulation. Let's go to the next slide, Bob, where we can talk a bit about the market and why this matters. I think it's no secret to anybody how important this type of information is today. We see this all the time. We see announcements about tariffs. We see announcements about AI regulation. We see announcements about all kinds of regulatory change happening in the U.S. and around the world. It's very complex for organizations to navigate, understand, and react to. We help them do that. It's an important problem to solve, and it's impacting more and more organizations globally all the time. It used to be you would talk about, oh, who's a regulated entity, etc. Now it's pretty much any organization can be impacted. Organizations become global just by the nature of business today, often before they're ready and realize it. Policy and regulation seeps into everything they do. Even any technology company, which used to be very simple from a policy and regulatory perspective, now has to deal with all kinds of regulations relating to privacy, information security, AI, and so on. It gets very difficult for these organizations to navigate. Because of that, the people who deal with this as part of their jobs and their careers are getting more and more seniority and responsibility within their organizations. This used to be a function that was either neglected or thought of as a back-office function. Increasingly, organizations realize how important these issues are, and it becomes a part of their decision-making, which is again helpful for us from a business perspective. These organizations and these individuals who do the buying are also becoming increasingly comfortable with the use of technology and AI to solve their problems. It used to be that they would do this work in spreadsheets or notes somewhere, and over time they became comfortable with SaaS solutions like ours, and now increasingly comfortable with AI, which is again very important for us. Lastly, I'll just mention too, we do view AI as a tailwind for us, and I'll talk more about that later. One example is we believe we have expansive opportunities in the future to do more and more to automate our users' workflows, which is a very high-value problem to solve, leveraging AI. We are starting to do that in increments today, and we see that as a very big market opportunity going forward. To give, and these are just examples of some of the logos who we work with. We have about 3,600 customers today globally. You see it's a good example, a good broad representation of some of the largest global organizations across private sector, public sector, as well as associations and NGOs. Private sector, just to, when you think about the types of problems that they need to solve, and you look at an example here like Nestlé, for example, which operates globally to source ingredients for its food, needs to deal with sustainable farming regulations, export-import rules, labor regulations, et cetera. A lot of things just in the sourcing and making of their food. They have to distribute, and they distribute to pretty much every country in the world and have to think about all the regulations globally down to locally that impact where and how their food is sold. It's an incredibly complex problem for a company like Nestlé to solve. That gives you a little bit of a sense for how this impacts these types of organizations. Let's move forward. As I mentioned, this is just a look at our customers. I mentioned 3,600 customers, and I mentioned that we're really a subscription revenue company, so about 92% subscription revenue. Our customers are spread across private sector, public sector, and associations, and NGOs. About half is private sector, about 20% in public sector, and about 30% nonprofits and NGOs. The types of buyers who we work with are in government affairs, public affairs, general counsels. These types of functions tend to touch the areas of legal risk, regulatory risk, and similar types of risk functions within the organization. Let's move forward. In terms of what we do, in terms of how we go about solving this problem, it's actually a very complex problem to solve, and we've been doing it for more than a decade at this point. It starts with combining very difficult to get and difficult to make useful public data sets globally down to locally. We collect data from more than 100 countries globally, which is more than anybody else, and we go down very deep locally. In the U.S., down to more than 16,000 school districts across the U.S. These data sets are public data, but as I said, they're very difficult to get to. They're fragmented, they're unstructured, they can be in hard-to-find places, especially when you get down to things like state and local level. Places can move around sometimes too. It's hard to get the data, then it's hard to clean it, normalize it, do all the things you need to do to make this data useful and to be able to provide platform-based and AI-based analysis of what's going on and what is coming down the road in regards to legislation and regulation. We have more than just these public data sets. We also have our own unique proprietary analysis that we provide as well. We have teams in Washington, D.C., Brussels, and elsewhere who are providing custom analysis around trending and what's happening in policy and regulation, most specifically in the U.S. and EU. They're working to do it globally as well. The team in Washington, D.C., to give you an example, they're in the hallways of the Congress and will be in the room as a congressional subcommittee is marking up draft legislation. They get very deep in terms of understanding what's going on. This is the type of information that quite often doesn't make it into any broad-based news outlet, but is really important and really provides necessary insights for the professionals who depend on this information for their organizations. We take this unique mix of public-based data sets that are hard to get, our own unique proprietary analysis, and we combine it and make it available through our platform. The data is multimodal, so it can be text, audio, video. It's very hard to get to and very hard to make useful, and we excel at that and have been doing that for more than a decade now. Let's go to the next slide. In terms of how we differentiate, it is this unique mix of the human and the automated intelligence. I mentioned the data that we have, I mentioned the human-based insights, proprietary insights that we provide, and we provide this data through a SaaS platform, which I'll show you in just a moment, which provides AI-based insights as well. It's this very unique combination of automated and human intelligence. We also have these comprehensive data sets that we provide, but we're also able to provide custom-based, AI-based analysis as well. It can be this kind of broad-based analysis, but also this responsive analysis that we provide as well. Very differentiated. The other thing I'll mention too is our content and our analysis is highly valued and highly respected. For professionals who depend on the type of information that we provide, they need to know that they're getting this from a trustworthy source. The buyers here are risking their organization's future on this information. They're presenting to boards of directors about this information. They need to know they get it from a trustworthy source, and we are that trusted source. Let's go to the next slide. Now you understand kind of what we do and why it matters. Let me tell you a bit about where we are as a company and some of the important initiatives that we have going forward. We've had three key objectives in regards to our operations. First is expanding our adjusted EBITDA margins, which we've been doing very successfully. We as a company made the journey from running at substantial losses. In 2022, we had a $24.5 million adjusted EBITDA loss. We made the commitment to get to operating profitability on an adjusted EBITDA basis. We made the commitment to do it by the end of 2023. We delivered that first quarter of profitability in Q3 of 2023, and we've now had eight consecutive quarters of adjusted EBITDA profitability, including $9.8 million adjusted EBITDA profit last year in 2024. We're continuing to execute, continuing to operate the business better and better, and we're driving continued adjusted EBITDA margin expansion. We're doubling our margins year- over- year. We're excited about the progress that we've made here. This is a result of running the business with discipline. It's been the result of making decisions about where we invest so that we can focus in the right places. It's been shutting down unprofitable initiatives and the like. As a company today, we operate much differently than we did even just a couple of years ago. Second key priority has been to reduce our debt and to accelerate the path to positive free cash flow. We want to go beyond adjusted EBITDA positive to free cash flow positive. We haven't yet given guidance on that, but you can see the way we're operating and the way that we have expanded our adjusted EBITDA margins significantly. We've also improved our free cash flow significantly. On a trailing 12-month basis, as of the end of Q2, so as of June 30th, 2025, if you look on a trailing 12-month basis, we've improved our free cash flow by $69 million over the past two years. We've made very significant improvements there. Some of that has come from reducing our senior term loan as we have sought to deleverage the company, and we've reduced our cash interest expense as a result. I'll also talk more in a couple of minutes about the recent refinancing that we've done as well. This has been through our continued discipline and operations. Also, our driving focus in the company, taking a strategic look across the board at the businesses that we want to be in, and we've divested non-core assets. That's helped us to really refine the business, position ourselves for success in the future, and continue to reduce the debt so that we can get to positive free cash flow sooner. The third thing I'll mention is growth. We have been building that foundation to drive to profitable, durable growth. That operationally, I'll walk through kind of what we've been doing and why that operationally has been the challenge, but we have the right building blocks in place to drive that growth going forward. We expect to see our ARR resume growing on a sequential basis in the second half of this year. We start with a very strong foundation. I've mentioned we have 3,600 customers to start. That's a great position to be in. We have this brand recognition and brand awareness in our market, and we have this tremendous need for the type of information that we provide. The challenge to growth has been the products in that we've had these great data sets. I mentioned we go, you know, so broad globally, down to locally, but these data sets have been in legacy siloed products. For example, to get your state data, you go to one platform. To get to federal data, you go to a different platform. It creates this very difficult user experience. We've been operating multiple platforms, which is hard to invest in and hard to drive innovation across multiple platforms at once. It's impacted customer engagement, and it's impacted really across the board from new logo onto retention and cross-sell upsell. What we've done to address that is in January of this year, we launched a new platform that is a consolidated platform that will replace all of our legacy siloed products. We're really excited at the progress that we're making there, and we're seeing the signs of that success coming. That new product is called PolicyNote. Here you see a screenshot of it on the page here. PolicyNote is, like I said, it's a consolidated platform that will replace our legacy platforms. We will have all our data and analysis in one place, and it's a very modern platform that has AI at its core. Let's go forward. I mentioned some of the problems, and to kind of help you understand why we expect that PolicyNote will help us return to growth. From a new logo perspective, we've been impacted by these legacy platforms. It's been too difficult to bundle products upfront because selling, again, selling, for example, federal and state is selling two different products, not just the multiple data sets within a single product. With PolicyNote, by having all these data sets in one place, it'll make us more effective at bundling upfront, and we'll be able to drive higher ACVs from the start. We also expect that over time, we'll see shortened sales cycles as we'll be able to have customers come in and try the platform and test the data before we even try to sell to them. Through product-led sales and product-led growth, we expect that's an opportunity going forward as well that will impact new logo. Gross retention will improve. As I mentioned, we've had difficulties with customer engagement, and that really translates into retention. These legacy platforms have the data spread across multiple platforms. As I said, it's hard to invest in all these platforms at the same time, so you get more of a disjointed user experience. With PolicyNote, it's a streamlined experience, everything in one place. We've already launched an improved setup and welcome experience to help people get engaged from the very start, and we expect that will drive improvements in gross retention. Net retention and expansion revenue through cross-sell upsell, like I mentioned before, being able to add data sets, but to do it in the platform should be an experience with much less friction than trying to sell actual supplemental products that are different products. We're excited at the opportunity for cross-sell upsell. We've also really changed our product and engineering culture in the company. We brought on new product and engineering leadership over the past year, and we're seeing the effects of that in the rapid pace of innovation across our platform. Over time, we expect that we will be able to continually add new features into PolicyNote, some of which will be part of the platform and part of the products that people have already purchased, but some that may be upsell, cross-sell in and of themselves. We're excited about the opportunity for that expansion revenue over time too. Let's go to the next slide. This gives you an example of what PolicyNote looks like here on the left, where you see an alert. You see some customer testimonials on the right. The key here to understand is the reason why we're showing you this example with the alert is so you can understand some of the benefits of it being AI-driven. If you, for example, are tracking ethanol legislation in a system that's more traditional that might be keyword-based, you would get an alert for any piece of legislation that mentions ethanol. Because PolicyNote has AI at its core, PolicyNote will actually give you broader alerts that are much more useful. Here you see an example where PolicyNote is giving an alert for a piece of legislation that doesn't actually mention ethanol, but is still probably relevant to the end user. That's an incredible thing to do for our customers because, as I mentioned, our customers are solving very high-value problems for their organizations. Quite often, they're reporting into their boards of directors. They live in fear of missing something that they should have known about. Because PolicyNote has AI at its core, we expect it to be much more valuable for our end users. Let's go to the next slide. I mentioned too that we're continuing to innovate across the platform as well with our improved product and engineering culture. This is really important for a couple of reasons. I mentioned how we're launching new features and enhancements. Since the launch of PolicyNote in January, we've launched 25 new major enhancements to the platform. That's not bug fixes, that's not just minor tweaks, that's major feature enhancements. We're really excited about that pace of product innovation. We know what it will mean over time. It's really important when you have a product-led culture as a way of driving growth. I'll give you a tangible example here. I think it's on the next slide. Let's see. Can we move forward? Yeah. Here's a tangible example. On April 2nd, President Trump announced the first wave of sweeping tariffs on what was called Liberation Day in a way that was, I think, a surprise to the market. Organizations scrambled to assess these tariffs, understand how it impacted their individual organizations, and so on. Within two weeks, so between April 2nd and April 16th, we iterated, planned, designed, built, and launched a tariff tracker within PolicyNote to help our customers navigate the complexity that came along with these sweeping tariffs. To go two weeks from not having it in the product to in the product and in production is really incredible. The tangible result of that was $1 million in new pipeline that was generated just on the day of launch, just by virtue of having that tariff tracker in there. The speed with which we're moving matters, and we expect it to have a positive impact on growth in the future. Let's go to the next slide. As I mentioned before, we're very excited about the progress with PolicyNote. Here are some of the tangible things that we're seeing that get us excited. First, we think a lot about user engagement in the product because that's the core for everything going forward. We've been very happy at the engagement metrics that we've seen to date. It starts with some of the basic things we look at, like user search activity, how often are they searching for new legislation, are those searches effective, are they finding the information when they need it, are they finding quickly, et cetera. How much are they using AI to find new insights, et cetera. We look at all the activity in the platform, and especially those that we think are high-value activities. We're very pleased with the metrics that we're seeing. Those metrics are either exceeding or meeting the benchmarks that we have. We feel very good about user engagement in the platform. Now that the platform has been live for six months, there's something new that we're seeing as well, which is we're able to see how users interact with it over time. In a user's first quarter on the platform, one thing that's been very interesting to us is seeing that usage actually increase over time. From the midpoint of that first quarter to the end of that first quarter, usage goes up by 30%. That's pretty incredible when you think about that because, you know, think about any new product you've used. You probably use it a lot at the start, and there are many where then your activity trails off and you don't remain engaged. The ones that you find very useful and the ones that you keep over time, those are the ones that you start using and you start to use it more and more over time. We're very excited to see those types of engagement metrics in the platform. It's very encouraging for us. We're also seeing results in sales. I mentioned that we expect to see improvements in new logo to help drive ARR growth in the future. We're seeing high demand for our products, I said as well. Inbound leads are up 20% year- over- year. We're happy with the level of demand. The team has done an excellent job of building up pipeline. We did have a challenge coming into the year with some execution issues within our commercial teams. We made some pretty swift management changes and operational changes in those teams, and we're actually really excited at the speed of the progress in building that pipeline to where it should be. Our corporate new logo pipeline was up 45% between the end of Q1 and the end of Q2. Very encouraging what we're seeing from a sales perspective there. We're also seeing our win rates improve. In Q2, our win rates were up by 400 basis points, and we're also seeing a significant increase in ACVs from our new corporate customers coming in. ACV growth is something I mentioned that we felt would be an underpinning of our ARR growth. We're very encouraged at these beginning signs that we're seeing. Another way to think about it too is our customers are voting with their wallets when they're committing to us now. We're seeing a much higher rate of customers, corporate customers in particular, committing to multi-year agreements with us. The share of ARR for our policy products on multi-years is double what it was a year ago from new contracts coming in. We're very excited about that too. That's a sign that customers expect that they'll need this product over time. They're confident in our ability to deliver. That mathematically should help with gross retention in 2026 as well. We're excited about all of these metrics and what they indicate. Let's go to the next slide. In earnings last week, we reaffirmed our guidance for this year, which is a revenue range of $94 million - $100 million and adjusted EBITDA range of $10 million - $12 million. We're focused on this product-led growth strategy. We're very encouraged by some of the early-stage metrics that we're seeing. We continue to operate the company with great discipline, and we're excited about the opportunity for the future. Speaking of the future, let's go to the next slide. One question we often get is about AI and is AI an accelerant? Is it a risk, et cetera? It's obviously something that we think about a lot. Overall, we do view AI as an accelerant for our company. FiscalNote Holdings has had AI in its DNA since its founding. It's something that we're very comfortable with as an organization. We view as a strength for ourselves. There are a few other things for you to think about here as well. One is, you know, there's obviously things like ChatGPT and so on, you know, get a lot of headlines. For our customers who are, like I said, they're staking their careers on this information. They're staking their organizations on this information. Trust and accuracy really matters, and they trust our brand. They can't just go to ChatGPT, for example, to get answers that they use. You can't do that and then put that in a board book and go present to your board. They need to know that they are getting this information from a trusted source. They trust us in part because we've been doing it so long, but also because they know that when we're running these queries, we're doing it against the right data sets. Again, it's these very difficult to find data sets that we collect. It's our own proprietary analysis, and it's nothing else. We're not pulling in other things from the web that may or may not distort the accuracy of the information. They know that they can trust the information that they get from us. That really matters. We know what we're doing with this. We know policy. We've been doing this for more than a decade. Beyond that, we do leverage LLMs in the background. We use OpenAI and others in the background. As those capabilities improve, our capabilities improve. For us, we get the best of both worlds because we're getting the advantage of the newest capabilities coming to market, but applying it to our data sets using our brands. We see that as a huge benefit. I also mentioned at the start that we see a long-term opportunity and an expansive opportunity in leveraging AI to go beyond information and insights and deeper into workflow. We have workflow tools already. We have reporting tools, stakeholder management tools. What I'm talking about here is leveraging generative and agentic AI to get deeper into our customers' workflow. Right now, today, for the most part, what our customers do is they use us for information and insights, and then they turn and they go do various types of manual work, quite often with external law firms, lobbying firms, public affairs firms, and the like. They spend a significant amount more with all those firms doing all that manual work than they do with us for our platform. We see the opportunity to automate a lot of the work that's adjacent to the information and insights in our platform and essentially take more market share and drive expansive revenue opportunities going forward. I'll give you an example of how we're already doing this type of work in the platform today. One example is if you're a customer and you're tracking a piece of legislation, you may want to write a position statement for your organization about that piece of legislation. Without a tool like ours, that might be days of work for you, or you may engage someone externally to do it. There is time and expense associated with it. Now, within PolicyNote, you can do it with a click of a button and have our generative AI do that for you. That's just a very simple example, but that just gives you a sense for the type of opportunity that I'm talking about. We see this as an expansive big opportunity for us for the future. Let's go to the next slide. These are our highlights from Q2 in terms of what we reported for total revenue, ARR, adjusted EBITDA, and where we stand from a cash perspective. I want to be cautious of time too. I mentioned I would just refer to our refinancing, which we just announced last week as well, where we entered into agreements to refinance our senior debt and restructure substantially all of our subordinated debt. It's subject to the satisfaction of customary closing conditions, and we expect to close in the middle of this month. The net net of this will be that we'll be replacing our current senior credit facility with a new $75 million facility with a maturity extended to 2029. That's coming from MGG Investment Group, and we're excited about the partnership there. We'll be paying off certain existing subordinated debt and also amending the agreement with our largest long-term subordinating creditor to extend the maturity of its remaining balance to 2029 as well. We believe this gives us more long-term runway and more operating flexibility as we look to execute on the product-led growth plan that I just outlined for you earlier. With that, I'll just sum up, and then we can see if there's any Q&A. Again, we're focused on product-led growth to drive future opportunities. We're very excited with what we've been doing with PolicyNote and the early signs of success that we're seeing there. We continue to operate with great operational discipline. That's now just kind of a part of how we do, and we see opportunity to continue to drive margin expansion going forward. We are going to continue to do all the things we need to do to get to a sustainable, durable, positive free cash flow in time. We're focused on essentially making sure that the company is on solid footing, a right-sized balance sheet, and really focused now operationally on getting back to growth. We do expect to see ARR growth resume on a sequential basis in the second half of this year. With all that, I appreciate all the time, and I'll pause here and see if there's any questions. Thanks a lot, Josh. We did have one question that came in in terms of PolicyNote on there. It was actually a two-part question. One was for Jon too. Maybe the first part is, can you talk about the migration path for a customer with PolicyNote? Along that line, are you doing the implementations internally, or do you have partners that are helping you with migrations? The question with Jon is, is there a way of thinking about the ACV uplift? I know typically with going from the legacy or at least on-premise to subscription, most companies saw three to four times to one ACV lift. I'm just wondering if that could be a similar outcome with PolicyNote. Thanks. Sure. Thanks. I'll take the first half, and then Jon, I'll pass to you for the second half. On the migration, that's a good question. We are migrating our customers as we speak. The migration is actually ahead of plan. We're handling the migration internally. The migration is actually not that significant a lift for us. The gating items do tend to be more about making sure that we have the right data sets and functionality in for the customers before they get migrated. We launched PolicyNote in January with an eye towards smaller customers. They're solving the simplest problems first, SMB, mid-market, et cetera. We've been focused then on following up with enterprise, who quite often have some more complex needs, you know, user management, permissioning, things like that. We're continuing to add those features in. We're continuing to add data sets in. As those features and data sets come in, we're migrating customers over in waves. Like I said, we're ahead of schedule for where we had expected to be as of right now. We do plan to deprecate at least one of our large legacy platforms by the end of this year. The migrations will continue through next year as well. Jon, do you want to answer the ACV question? Sure. Thanks, Brian, for the question. When we think about the levers and pathways to revenue growth for our business model, we think about it in terms of new sales, retention, and ACV. It's really a combination of those three. Any of the improvements in any of them will drive kind of the revenue growth that we anticipate. First and foremost, the migration of existing customers to the PolicyNote platform will, first, we're not aggressively pushing price in the transition. We're using that as a retention tool. By securing and improving the underlying retention rates, that itself will drive higher growth rates because we have a consistent and increasing level of new sales. Retaining more customers each year will be a driver. As we add more features, and Josh talked about the pace at which we're adding innovative features to the platform, that will be an opportunity for us to push price as well. The other thing that we're seeing early on, and we expect to be a kind of a strength and a lever for growth along these lines, is the number of users inside of an organization is expanding with a platform that's easier to use. The legacy platforms are very specific to use cases and workflows for people who are directly engaged in kind of policy analysis. With the new platform, it's a platform that people like you and me can use. It's intuitive. It gives answers in plain language. It's a helpful business planning tool that makes it easier for a line manager to ask questions in kind of policy and regulatory-related questions. Thank you very much. We're out of time. I want to thank Josh, Jon, and Bob for presenting FiscalNote. Sounds like you guys have been very busy here in the first half of the year. Great. Thanks, Brian. I appreciate the time. Thank you, Brian. Appreciate the Thank you, Brian. Appreciate the opportunity.