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Forrester Research (FORR)
:FORR
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Forrester Research
(NASDAQ:FORR)
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Rating:42Neutral
Price Target:
$6.50
▼(-31.07% Downside)
Forrester Research's overall stock score is primarily impacted by its weak financial performance and valuation. The company faces significant challenges with declining revenues and profitability issues, reflected in negative margins and ROE. Technical analysis indicates bearish momentum, with the stock trading below key moving averages and close to oversold territory. Valuation concerns are heightened by a negative P/E ratio and lack of dividend yield. While the earnings call provided some positive insights, such as the promising launch of AI Access, the overall sentiment remains cautious due to ongoing revenue declines and adjusted guidance.
Positive Factors
Launch of AI Access
The launch of AI Access represents a strategic innovation, potentially enhancing Forrester's product offerings and market competitiveness, driving future growth.
Improved Operating Income
Improved operating income reflects enhanced operational efficiency, suggesting better cost management and potential for sustainable profitability.
Strong Cash and Debt Management
A strong cash position and low debt level provide financial flexibility, supporting strategic investments and resilience against market fluctuations.
Negative Factors
Decline in Consulting and Research Revenue
Declining consulting and research revenue indicates challenges in core business areas, potentially impacting long-term growth and market position.
Challenges in Government Consulting
Reduced government consulting revenue suggests vulnerability to sector-specific shifts, impacting diversification and stability of revenue streams.
Event Business Headwinds
Challenges in the events business highlight potential volatility and dependency on external factors, affecting revenue predictability and growth.
Forrester Research (FORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$143.50M
Dividend YieldN/A
Average Volume (3M)119.77K
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth-8.73%
EPS Growth-1168.15%
CountryUS
Employees1,510
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)0.37
Shares Outstanding19,083,000
10 Day Avg. Volume160,805
30 Day Avg. Volume119,771
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)1.30
Price to Sales (P/S)0.69
P/FCF Ratio-41.21
Enterprise Value/Market Cap0.74
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit0.39
Enterprise Value/Ebitda-1.81
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Forrester Research Business Overview & Revenue Model
Company DescriptionForrester Research, Inc. (FORR) is a leading global research and advisory firm, providing insights and analysis on technology, customer experience, marketing, and digital transformation. Founded in 1983, Forrester serves a diverse range of industries, including technology, financial services, healthcare, and retail, helping organizations navigate the complexities of the digital landscape. Its core offerings include market research reports, advisory services, consulting, and events that empower businesses to make informed decisions and drive growth.
How the Company Makes MoneyForrester generates revenue through a subscription-based model, offering clients access to its research and advisory services. The primary revenue streams include subscription fees from corporate clients who pay for access to research reports, data, and analyst inquiries. Additionally, Forrester earns revenue from consulting services that provide customized insights and strategic recommendations tailored to specific business needs. Event sponsorships and attendance fees from conferences and seminars also contribute to its earnings. Strategic partnerships with technology vendors and industry leaders help expand its reach and enhance its service offerings, further bolstering its revenue potential.
Forrester Research Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted the successful launch and initial reception of the AI Access product, improved operating income, and strong cash management. However, there were significant challenges with declines in consulting and research revenue, difficulties in government consulting, and event business headwinds. The overall sentiment balances between these positive developments and the notable challenges.Q3-2025 Updates
Positive Updates
Launch of AI Access
AI Access, a self-service AI offering, was launched on September 9. It has received significant interest with a multimillion-dollar fast-growing sales pipeline. The product aims to democratize access to Forrester's research and is expected to have a positive impact on future performance.
Record Research Deal
Forrester secured one of the largest research deals in its history with a large government agency. The ability to offer an enterprise-wide pricing model via AI Access was a key differentiator.
Improved Operating Income
Operating income increased by 21% to $9.9 million, or 10.5% of revenue, compared to $8.2 million or 8% of revenue in the third quarter of 2024.
Increase in Net Income and EPS
Net income and earnings per share increased 30% and 28%, respectively, compared to Q3 of last year, with net income at $7.2 million and earnings per share of $0.37.
Cash and Debt Management
The balance sheet remains strong with cash at the end of the quarter of approximately $132 million and debt of only $35 million.
Negative Updates
Decline in Consulting and Research Revenue
Total revenue declined 8% from the prior year. Consulting revenue declined 8%, and research revenue declined 6% in the quarter.
Challenges in Government Consulting
The U.S. federal government pullback significantly impacted consulting revenue, which declined 8% from the prior year.
Event Business Headwinds
The events business faced challenges with a shift in timing of a major event impacting results, leading to ongoing impediments for future performance.
Adjusted Revenue Guidance
Forrester is downward adjusting its revenue guidance due to performance challenges in the Consulting and Events businesses. The new guidance expects revenue to be down 6% to 9% versus 2024.
Company Guidance
During Forrester's Q3 2025 conference call, the company provided detailed guidance on its performance and future outlook. The call highlighted a revenue decline of 8% year-over-year, with research revenue down 6% and consulting revenue down 8%. Despite these challenges, Forrester's new AI Access product, launched in September, has shown significant promise, generating a fast-growing multimillion-dollar pipeline. The company reported wallet retention increased by 1% to 86%, while client retention remained steady at 74%. Forrester's operating margin improved to 10.5% of revenue, up from 8% in Q3 2024, and EPS increased by 28% to $0.37. The company's guidance for 2025 was adjusted downward, with expected revenue between $395 million and $405 million, reflecting ongoing headwinds in consulting and events. However, Forrester remains optimistic about the potential of AI Access to drive growth and improve retention and contract value in the coming quarters.Forrester Research Financial Statement Overview
Summary
Forrester Research faces significant financial challenges, with declining revenues and profitability issues reflected in negative margins and ROE. While leverage is moderate, cash flow generation is weak, impacting overall financial health. The company needs to address operational inefficiencies and improve revenue growth to enhance financial stability.Income Statement
Forrester Research's income statement shows a declining trend in revenue with a negative revenue growth rate of -2.41% TTM. The company has a negative net profit margin of -21.53% TTM, indicating significant losses. Gross profit margin remains relatively strong at 64.38% TTM, but EBIT and EBITDA margins are negative, reflecting operational challenges.45
Neutral
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio of 0.44 TTM, suggesting manageable leverage. However, the return on equity is negative at -46.04% TTM, indicating poor profitability. The equity ratio is not explicitly calculated, but the company's equity position appears stable relative to its assets.55
Neutral
Cash Flow
Cash flow analysis shows a negative free cash flow growth rate of -2.51% TTM, indicating declining cash generation. The operating cash flow to net income ratio is low at 0.11 TTM, suggesting limited cash flow relative to net losses. However, the free cash flow to net income ratio is relatively high at 0.89 TTM, indicating some efficiency in converting earnings to cash.50
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 412.10M | 432.47M | 480.78M | 537.79M | 494.31M | 448.98M |
| Gross Profit | 269.19M | 422.82M | 276.30M | 314.01M | 292.50M | 268.08M |
| EBITDA | -58.22M | 35.83M | 41.41M | 70.10M | 73.35M | 61.23M |
| Net Income | -88.72M | -5.75M | 3.05M | 21.81M | 24.84M | 9.99M |
Balance Sheet | ||||||
| Total Assets | 436.04M | 503.86M | 564.17M | 608.44M | 680.13M | 644.22M |
| Cash, Cash Equivalents and Short-Term Investments | 134.95M | 104.67M | 124.49M | 123.32M | 134.28M | 90.26M |
| Total Debt | 76.73M | 72.57M | 86.85M | 114.38M | 153.03M | 190.09M |
| Total Liabilities | 276.50M | 274.32M | 323.91M | 386.78M | 476.22M | 458.45M |
| Stockholders Equity | 159.54M | 229.54M | 240.26M | 221.66M | 203.91M | 185.77M |
Cash Flow | ||||||
| Free Cash Flow | 19.14M | -7.26M | 16.18M | 33.76M | 96.32M | 38.85M |
| Operating Cash Flow | 21.53M | -3.86M | 21.67M | 39.42M | 107.07M | 47.75M |
| Investing Cash Flow | -7.05M | 5.02M | -36.76M | -6.81M | -29.30M | -4.57M |
| Financing Cash Flow | -8.07M | -16.10M | -18.30M | -38.87M | -49.14M | -23.69M |
Forrester Research Technical Analysis
Negative
9.43
Price Trends
8.21
Negative
9.16
Negative
9.62
Negative
Market Momentum
-0.38
Negative
35.18
Neutral
26.13
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORR, the sentiment is Negative. The current price of 9.43 is above the 20-day moving average (MA) of 7.23, above the 50-day MA of 8.21, and below the 200-day MA of 9.62, indicating a bearish trend. The MACD of -0.38 indicates Negative momentum. The RSI at 35.18 is Neutral, neither overbought nor oversold. The STOCH value of 26.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORR.
Forrester Research Risk Analysis
Forrester Research disclosed 20 risk factors in its most recent earnings report. Forrester Research reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Forrester Research Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $1.24B | 22.76 | 27.83% | 1.08% | 8.69% | 34.58% | |
77 Outperform | $5.17B | 21.28 | 13.30% | ― | -0.95% | -10.54% | |
75 Outperform | $2.95B | 28.63 | 21.20% | ― | 12.50% | 29.40% | |
74 Outperform | $1.57B | 16.03 | 9.88% | 0.66% | -3.81% | -7.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $193.16M | 66.29 | 4.09% | ― | -7.02% | -86.27% | |
42 Neutral | $143.50M | ― | -43.39% | ― | -8.73% | -1168.15% |
* Industrials Sector Average
FORR
Forrester Research
6.63
-10.38
-61.02%
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ICFI
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Forrester Research Corporate Events
Executive/Board Changes
Forrester Research Announces Chief Sales Officer Departure
Neutral
Oct 31, 2025
On October 31, 2025, Nate Swan ceased to serve as the Chief Sales Officer of Forrester Research. This change in leadership may impact the company’s sales strategies and stakeholder relations moving forward.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.