Forrester Research (FORR) AI Stock Analysis

• Market Cap: $117.74M
• Dividend Yield: N/A
• Average Volume (3M): 119.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -8.73%
• EPS Growth: -1168.15%
• Country: US
• Employees: 1,510
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.17
• Shares Outstanding: 19,176,000
• 10 Day Avg. Volume: 160,805
• 30 Day Avg. Volume: 119,771
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 0.39
• P/FCF Ratio: 8.53
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.30
• Enterprise Value/Gross Profit: 0.46
• Enterprise Value/Ebitda: -1.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $368.84M

• Rating: 46 Neutral
• Price Target: $6.00 ▼(-2.28% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is weighed down primarily by deteriorating financial performance and multi-year revenue contraction, reinforced by a bearish technical trend. Earnings-call guidance points to continued top-line pressure in 2026 despite cost actions and improving retention/AI momentum, while valuation is difficult to assess given the negative P/E.

Positive Factors

AI Access product with growing pipeline

The self‑service AI Access product creates a scalable, higher‑margin channel to distribute Forrester research. A multimillion‑dollar pipeline implies enterprise adoption potential, enabling recurring, contracted revenue growth and broader market reach over coming quarters.

Solid cash and low debt

Substantial cash versus low debt supports strategic flexibility: funding product development, absorbing cyclical revenue dips, and investing in AI Access commercialization without immediate refinancing risk. This strengthens resilience and capacity for targeted M&A or marketing investments.

High subscription retention metrics

Elevated wallet and client retention reflect sticky subscription relationships and recurring revenue foundation. High retention reduces acquisition dependency, supports predictable cash flow, and improves lifetime value, aiding long‑term margin recovery as new products drive upsells.

Negative Factors

Declining revenue trend

Sustained revenue decline signals demand pressure across core offerings, reducing operating leverage and constraining reinvestment. If consulting and research trends persist, the company faces long‑term growth headwinds that could impair margin expansion and strategic initiatives like AI Access.

Weak profitability and negative margins

Persistent negative net and operating margins, and negative ROE, erode equity value and limit internal funding. Even with strong gross margins, elevated operating losses indicate expense structure or sales mix issues that must be fixed to sustain profitability over the medium term.

Exposure to consulting and events cyclicality

Heavy reliance on consulting and events makes revenue sensitive to public‑sector budgets and event timing. Such concentration introduces structural volatility in bookings and cash flow, complicating forecasting and weakening resilience during prolonged public/private spending slowdowns.

Forrester Research Business Overview & Revenue Model

Company Description

Forrester Research, Inc. operates as an independent research and advisory services company. The company operates in three segments: Research, Consulting, and Events. The Research segment primary subscription research portfolio services include Forrester Research, SiriusDecisions Research, and Forrester Decisions, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations through online access. The Consulting segment provides consulting projecs, including conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts in-person and virtual events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations in the United States, Europe, the United Kingdom, Canada, the Asia Pacific region, and internationally. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

How the Company Makes Money

Forrester 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 Financial Statement Overview

Summary

Income statement weakness is the dominant issue: revenue has declined for three straight years and 2025 profitability deteriorated sharply, including a large net loss and very weak operating margins. The balance sheet is only moderately levered (debt-to-equity ~0.51) and debt has come down, while 2025 operating cash flow and free cash flow are positive, but shrinking equity and loss-driven returns meaningfully pressure overall financial quality.

Income Statement

Revenue has contracted for three straight years (2023–2025), and profitability has deteriorated sharply. 2025 shows very weak operating profitability (EBIT margin ~0.5%, EBITDA margin ~4.2%) and a large net loss (net margin ~-30%), a major reversal from modest profitability in 2020–2023 and stronger margins in 2021–2022. Gross margin is still healthy in 2025 (~53%), but the earnings profile is currently the core weakness.

Balance Sheet

Leverage is moderate (2025 debt-to-equity ~0.51), and total debt has come down versus 2020–2021, which is a positive. However, equity has dropped materially by 2025, and returns on equity have turned deeply negative in 2025, consistent with the large loss. Overall balance sheet risk looks manageable on leverage, but shrinking equity and negative profitability reduce financial flexibility.

Cash Flow

Cash generation is a relative bright spot in 2025: operating cash flow (~$21.1M) and free cash flow (~$18.1M) are positive, rebounding from negative operating and free cash flow in 2024. That said, free cash flow declined versus 2024 (growth ~-9%), and the business is not converting earnings into cash because net income is deeply negative in 2025 (cash flow is positive largely despite reported losses).

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	396.89M	432.47M	480.78M	537.79M	494.31M
Gross Profit	211.40M	422.82M	276.30M	314.01M	292.50M
EBITDA	16.72M	35.83M	41.41M	70.10M	73.35M
Net Income	-119.36M	-5.75M	3.05M	21.81M	24.84M
Balance Sheet
Total Assets	404.03M	503.86M	564.17M	608.44M	680.13M
Cash, Cash Equivalents and Short-Term Investments	63.34M	104.67M	124.49M	123.32M	134.28M
Total Debt	64.51M	72.57M	86.85M	114.38M	153.03M
Total Liabilities	277.51M	274.32M	323.91M	386.78M	476.22M
Stockholders Equity	126.53M	229.54M	240.26M	221.66M	203.91M
Cash Flow
Free Cash Flow	18.09M	-7.26M	16.18M	33.76M	96.32M
Operating Cash Flow	21.08M	-3.86M	21.67M	39.42M	107.07M
Investing Cash Flow	-14.07M	5.02M	-36.76M	-6.81M	-29.30M
Financing Cash Flow	-2.57M	-16.10M	-18.30M	-38.87M	-49.14M

Forrester Research Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 6.14 is above the 20-day moving average (MA) of 6.08, below the 50-day MA of 6.97, and below the 200-day MA of 8.59, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 44.41 is Neutral, neither overbought nor oversold. The STOCH value of 49.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FORR.

Forrester Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	71 Outperform	$2.12B	28.72	21.03%	―	12.50%	29.40%
FCN	68 Neutral	$5.05B	19.86	13.30%	―	-0.95%	-10.54%
CRAI	67 Neutral	$1.01B	24.31	26.10%	0.97%	8.69%	34.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
ICFI	60 Neutral	$1.21B	17.06	9.11%	0.65%	-3.81%	-7.05%
FC	51 Neutral	$134.47M	-14.66	-2.17%	―	-7.02%	-86.27%
FORR	46 Neutral	$117.74M	-1.29	-80.76%	―	-8.73%	-1168.15%

Forrester Research Corporate Events

Forrester Research Announces Workforce Reduction and Restructuring Plan

On February 9, 2026, Forrester Research announced a workforce reduction of about 8% across geographies and functions, following notifications that began on December 15, 2025 and are slated to conclude by July 31, 2026. The company expects pre-tax expenses of roughly $10 million to $10.5 million in the fourth quarter of 2025 and the first three quarters of 2026, primarily for cash severance and employee benefit costs tied to these layoffs.

As part of the restructuring, Forrester plans to close several smaller offices in and outside the United States, incurring around $0.4 million in non-cash lease impairment charges. It also anticipates approximately $3 million in contract termination costs, signaling a meaningful streamlining of its operational footprint that may improve long-term efficiency while creating near-term financial and organizational disruption for employees and affected locations.

The most recent analyst rating on (FORR) stock is a Sell with a $7.50 price target. To see the full list of analyst forecasts on Forrester Research stock, see the FORR Stock Forecast page.