Improving Retention Metrics
Wallet retention improved 2 points sequentially to 89% (up 3 points YoY). Client retention rose 1 point sequentially to 78% (up 5 points YoY). These retention gains were cited as evidence of stronger engagement and improved onboarding.
Forrester AI Adoption and Product Advances
Forrester AI usage hit an all-time high in Q1 with overall usage up 55% YoY and prompt volume up 65% YoY. Company upgraded to a new Forrester AI model (conversational, transparent reasoning, 197 languages) and launched integrations in Microsoft Teams and Microsoft Copilot, increasing access where clients work.
Strong Cash Generation and Balance Sheet
Generated $19 million in free cash flow for the quarter (approximately $25 million excluding one-time Cambridge HQ CapEx of $5.4M). Cash at quarter-end was over $145 million with only $35 million of debt and an extended credit facility maturity to March 2029.
Productivity and Sales Momentum
Q1 CV productivity per rep was 6% higher than a year ago. AI Access adoption is accelerating (just under 5% of CV currently, expected to approach ~10% by year-end), and 40% of sales reps have sold AI Access. Event sponsorship bookings and attendee metrics improved (B2B event attendees up 10%).
Research Output and Practical Offerings
Released over 420 research reports and datasets in Q1 and created 70 initiative blueprints (actionable, step-by-step guidance). Launched Forrester AI Use Case Catalog with 900+ use cases to help clients prioritize AI investments.
Raised Confidence in Guidance
Management increased the low end of 2026 revenue guidance and provided a narrowed full-year revenue range of $350M to $360M (down 9% to 12% vs 2025), citing improving metrics and stronger sponsorship bookings. Full-year operating margin guidance of 6%–6.5% and EPS guidance of $0.72–$0.82 were reiterated.
Portfolio and GTM Execution
Progress on strategic initiatives: executed retention life cycle improvements (faster onboarding), embedded AI where clients work, restructured sales territories and training to focus on growth industries (North America organized into six industries), and expanded product optionality (AI Access).
Cost Discipline and Lower Operating Expense Base
Adjusted operating expenses decreased 1% in Q1, headcount down 8%, and real estate costs reduced, contributing to improved operating leverage despite some one-time items.