Forrester Research (FORR) AI Stock Analysis

• Market Cap: $193.49M
• Dividend Yield: N/A
• Average Volume (3M): 63.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.73
• Revenue Growth: -9.61%
• EPS Growth: -18170.36%
• Country: US
• Employees: 1,510
• Sector: Industrials
• Sector Strength: 93
• Industry: Consulting Services
• EPS (TTM): 0.11
• Shares Outstanding: 19,063,000
• 10 Day Avg. Volume: 51,748
• 30 Day Avg. Volume: 63,715
• PEG Ratio: -2.27
• Price to Book (P/B): 0.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -25.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.00
• Price Target Upside: 31.09% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $11.00 ▲(3.00%Upside)

Forrester Research's overall stock score reflects significant financial performance challenges, particularly in profitability and revenue decline. Technical indicators and earnings call sentiment offer some positive aspects, with short-term momentum and strategic focus on AI and product expansion. However, the negative valuation and ongoing external pressures highlight the need for strategic improvements to enhance long-term sustainability.

Positive Factors

Earnings and Financial Performance

Forrester reported Q1/25 non-GAAP EPS of $0.11, which exceeded the forecast and the FactSet consensus forecast of $0.08.

Sales Pipeline and Contracts

The company’s sales pipeline has been improving month-on-month and increased 33% YOY in Q1/25.

Negative Factors

Client Retention and Growth

Client count declined 14% year-over-year and 6% sequentially, excluding divestitures.

Contract Value and Market Dynamics

The newly introduced 2025 guidance fell short of initial expectations across all key metrics, with a 5% year-over-year decline in contract value reflecting continued issues with both salesforce execution and end-market softness.

Financial Outlook

A MARKET PERFORM rating is maintained on FORR shares due to a weak 2025 financial outlook and high business risk.

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 Research generates revenue primarily through its subscription-based research services, which provide clients with access to a wealth of proprietary market insights, data, and analytics. The company also earns money from consulting services, where it offers tailored advice and strategic guidance to businesses seeking to leverage Forrester's expertise in various domains. Additionally, Forrester hosts events and conferences that serve as significant revenue streams, attracting industry leaders and professionals who pay for attendance and sponsorship opportunities. Key partnerships with technology vendors and industry associations further enhance Forrester's market reach and revenue potential.

Forrester Research Financial Statement Overview

Summary

Forrester Research is facing financial challenges with declining revenues and a negative net income. The balance sheet remains stable, but cash flow issues persist, necessitating improved operational efficiency.

Income Statement

Forrester Research has faced a decline in total revenue over the past year, with a revenue drop from $480.8 million in 2023 to $432.5 million in 2024. The gross profit margin remains strong at approximately 97.8%, indicating effective cost management. However, the net profit margin has turned negative due to a net income loss of $5.7 million in 2024. The company also experienced a negative revenue growth rate, highlighting challenges in maintaining revenue streams. EBIT and EBITDA margins are low at approximately 0.4%, indicating limited operational efficiency.

Balance Sheet

The balance sheet of Forrester Research shows a manageable debt-to-equity ratio of approximately 0.26, indicating conservative leverage. The equity ratio stands at approximately 45.6%, reflecting a balanced capital structure. Return on equity has suffered due to a net loss, impacting profitability metrics. Despite this, the company's total assets are well-supported by equity, contributing to overall stability.

Cash Flow

Forrester Research faced a negative operating cash flow in 2024, primarily due to operational challenges. The free cash flow has significantly declined compared to the previous year, reflecting cash management difficulties. The company has negative free cash flow growth, indicating potential issues in generating cash from operations. However, historical trends suggest the potential for recovery in cash flow positions.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
432.47M	480.78M	537.79M	494.31M	448.98M
	Gross Profit
422.82M	276.30M	314.01M	292.50M	268.08M
	EBIT
1.77M	6.77M	32.65M	38.64M	21.58M
	EBITDA
35.83M	41.41M	70.10M	116.12M	98.07M
	Net Income Common Stockholders
-5.75M	3.05M	21.81M	24.84M	9.99M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
104.67M	124.49M	123.32M	134.28M	90.26M
	Total Assets
503.86M	564.17M	608.44M	680.13M	644.22M
	Total Debt
59.81M	86.85M	114.38M	153.03M	190.09M
	Net Debt
3.72M	13.95M	-8.93M	18.75M	99.84M
	Total Liabilities
274.32M	323.91M	386.78M	476.22M	458.45M
	Stockholders Equity
229.54M	240.26M	221.66M	203.91M	185.77M
Cash Flow		Free Cash Flow
-7.26M	16.18M	33.76M	96.32M	38.85M
	Operating Cash Flow
-3.86M	21.67M	39.42M	107.07M	47.75M
	Investing Cash Flow
5.02M	-36.76M	-6.81M	-29.30M	-4.57M
	Financing Cash Flow
-16.10M	-18.30M	-38.87M	-49.14M	-23.69M

Forrester Research Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORR, the sentiment is Positive. The current price of 10.68 is above the 20-day moving average (MA) of 10.50, above the 50-day MA of 9.90, and below the 200-day MA of 13.96, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 55.81 is Neutral, neither overbought nor oversold. The STOCH value of 37.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FORR.

Forrester Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	76 Outperform	$2.45B	21.46	24.88%	―	8.83%	92.48%
CRAI	75 Outperform	$1.29B	25.37	23.18%	1.00%	8.49%	21.06%
ICFI	73 Outperform	$1.52B	14.18	11.64%	0.68%	1.95%	17.98%
FC	68 Neutral	$289.76M	17.11	24.81%	―	2.53%	5.95%
FCN	68 Neutral	$5.56B	22.40	12.46%	―	1.59%	-16.79%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%
FORR	52 Neutral	$193.49M	―	-45.64%	―	-9.61%	-18170.36%

Forrester Research Corporate Events

Forrester Research Elects Board at Annual Meeting

At the Annual Meeting of Stockholders held on May 13, 2025, Forrester Research, Inc. successfully elected six nominees to its Board of Directors, with all nominees receiving approval from the stockholders. Additionally, the stockholders ratified the selection of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, and approved the executive compensation through a non-binding vote.

The most recent analyst rating on (FORR) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Forrester Research stock, see the FORR Stock Forecast page.