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Forrester Research (FORR)
NASDAQ:FORR
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Forrester Research
(NASDAQ:FORR)
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Rating:42Neutral
Price Target:
$8.00
▲(31.58% Upside)
Action:ReiteratedDate:11/21/25
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
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 (FORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$104.90M
Dividend YieldN/A
Average Volume (3M)119.77K
Price to Earnings (P/E)―
Beta (1Y)0.82
Revenue Growth-8.73%
EPS Growth-1168.15%
CountryUS
Employees1,510
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding19,003,000
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 Cap1.17
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit0.46
Enterprise Value/Ebitda-2.06
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.01
Revenue Forecast (FY)$368.84M
Forrester Research Business Overview & Revenue Model
Company DescriptionForrester 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 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:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: meaningful operational and financial headwinds drove notable year-over-year declines in revenue, consulting, and events, and produced sizable earnings pressure and a conservative 2026 revenue outlook. Offsetting these challenges are clear areas of forward momentum—strong AI product engagement (AI Access and Forrester AI), improving client retention and client count trends, a healthier multiyear contract mix, solid free cash flow and a strong balance sheet, and a defined plan to refocus the company on higher-margin subscription research and AI investments. Given the material near-term declines but credible signs of stabilization and growth levers (AI and retention lifecycle) that management is prioritizing, the call is balanced between risk and opportunity.Q4-2025 Updates
Positive Updates
AI Adoption and Product Momentum
Forrester AI (formerly iZola) saw strong engagement: unique users up 55% year-over-year in Q4 and prompts up 65% year-over-year. AI Access, launched in September 2025, generated over $5,000,000 in bookings in 2025, accelerated deal cycle time by ~50%, and contributed materially to new-client wins and the Q4 sequential increase in client count.
Improving Retention Metrics
Client retention reached 87% (improved several points during the year; management cites a four-point year-over-year improvement), and client count increased sequentially in Q4 for the first time since 2021, driven in part by AI Access and retention lifecycle execution.
Shift to Multiyear Contract Mix
The percentage of contract value (CV) in multiyear deals rose to 72% at year-end (up from 69% in 2024), improving forward revenue visibility for subscription research.
Strong Cash Position and Free Cash Flow
Full-year free cash flow was $18,000,000 and cash flow from operations was $21,100,000. The company ended the quarter with approximately $127,700,000 in cash and only $35,000,000 in debt, and retains over $77,000,000 of its share repurchase authorization.
Cost Reductions and Expense Discipline
Adjusted operating expenses decreased 2% in Q4 and 7% for the full year, driven by labor reductions, benefits savings, and facility consolidation; headcount was down ~6% year-over-year in Q4, and restructuring targets are intended to better align costs with revenue.
Research Business Relative Resilience
Research revenue demonstrated smaller declines than other segments: Research revenue was $76.6M in Q4 and $295.6M for the year (down 4% and 7% respectively), and Research CV was $292.4M as of 12/31/2025 (down 6% YoY)—supporting management's strategy to focus the company on higher-margin subscription research.
Clear Strategic Roadmap for 2026
Management outlined four focused initiatives for returning to contract value growth in 2026: executing the retention lifecycle, expanding product options and embedding Forrester AI, improving go-to-market execution under new sales leadership, and producing more actionable, data-rich research (Blueprints, all-seasons research, expanded proprietary data).
Negative Updates
Revenue and Contract Value Declines
Total revenue for Q4 2025 was $101.1M, down 6% from Q4 2024 ($108.0M). Full-year 2025 revenue was $396.9M, down 8% versus $432.5M in 2024. Contract value (CV) declined 6% in the year, with declines concentrated outside core subscription research.
Consulting Business Weakness and Exit of Strategy Consulting
Consulting revenue declined 16% in Q4 and 9% for the full year to $88.2M. Strategy consulting bookings plunged by more than 50% in 2025, prompting management to sunset the strategy consulting line—an expected direct revenue impact of roughly $6,000,000 and an $8,000,000 backlog to be serviced through 2026.
Severe Events Business Decline
Events revenue fell 29% for the full year to $13.1M and was weak in Q4 ($2.7M, down 1% YoY). Lower sponsorships and ticket sales led to a major rework of the events strategy (moving to smaller, regional, shorter formats).
Profitability Pressure and Earnings Decline
Adjusted operating income decreased 53% in Q4 to $4.2M (4.1% of revenue) and fell 21% for the full year to $30.3M (7.6% of revenue). Net income and EPS also dropped 53% in Q4 to $3.2M and $0.17 respectively; full-year net income fell 21% to $22.2M and EPS to $1.16.
Restructuring Costs and Workforce Reduction
The company announced a restructuring impacting ~8% of employees, expects $13.5M–$14.0M of associated costs (with $9.9M recognized in Q4), and reduced workforce by approximately 8% to realign cost structure with revenue.
Conservative 2026 Revenue Guidance
Management guided 2026 revenue to $345M–$360M, implying a further decline of 9%–13% versus 2025. Guidance assumes Research down mid-single-digits, Consulting down low-twenties percent, and Events down high-teens—indicating continued near-term pressure on top line as businesses are reshaped.
Legacy Product Migration Impact
Full-year subscription research growth in Forrester Decisions was offset by declines in legacy cohorts as the company completed migration to Forrester Decisions, contributing to the overall revenue decline and near-term headwinds.
Company Guidance
Management guided 2026 revenue of $345–$360 million (down 9%–13% vs 2025’s $396.9M), expecting Research to decline mid-single-digits, Consulting to decline in the low‑20% range, and Events to decline in the high‑teens, with Research growing to roughly 80% of total revenue (from ~75% in 2025); they expect contract value (CV) to show modest growth exiting the year and are targeting operating margins of 6.0%–6.5%, EPS of $0.72–$0.82, interest expense of about $2.3M, and a full‑year tax rate of 29%. For context, 2025 metrics included Q4 revenue of $101.1M (–6% y/y), full‑year revenue of $396.9M (–8% y/y vs $432.5M), Research CV of $292.4M (–6%), client retention at 87%, free cash flow of ~$18M, year‑end cash of ~$127.7M, debt of $35M, AI Access bookings >$5M in 2025, a ~8% workforce reduction, and expected restructuring costs of ~$13.5–14.0M (including $9.9M recognized in Q4).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 | 403.87M | 432.47M | 480.78M | 537.79M | 494.31M | 448.98M |
| Gross Profit | 266.03M | 422.82M | 276.30M | 314.01M | 292.50M | 268.08M |
| EBITDA | -59.53M | 35.83M | 41.41M | 70.10M | 73.35M | 61.23M |
| Net Income | -85.05M | -5.75M | 3.05M | 21.81M | 24.84M | 9.99M |
Balance Sheet | ||||||
| Total Assets | 414.18M | 503.86M | 564.17M | 608.44M | 680.13M | 644.22M |
| Cash, Cash Equivalents and Short-Term Investments | 131.95M | 104.67M | 124.49M | 123.32M | 134.28M | 90.26M |
| Total Debt | 74.29M | 72.57M | 86.85M | 114.38M | 153.03M | 190.09M |
| Total Liabilities | 256.51M | 274.32M | 323.91M | 386.78M | 476.22M | 458.45M |
| Stockholders Equity | 157.67M | 229.54M | 240.26M | 221.66M | 203.91M | 185.77M |
Cash Flow | ||||||
| Free Cash Flow | 19.88M | -7.26M | 16.18M | 33.76M | 96.32M | 38.85M |
| Operating Cash Flow | 22.46M | -3.86M | 21.67M | 39.42M | 107.07M | 47.75M |
| Investing Cash Flow | -15.46M | 5.02M | -36.76M | -6.81M | -29.30M | -4.57M |
| Financing Cash Flow | -5.42M | -16.10M | -18.30M | -38.87M | -49.14M | -23.69M |
Forrester Research Technical Analysis
Negative
6.08
Price Trends
7.32
Negative
7.61
Negative
8.90
Negative
Market Momentum
-0.54
Positive
40.15
Neutral
50.94
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 6.08 is below the 20-day moving average (MA) of 6.58, below the 50-day MA of 7.32, and below the 200-day MA of 8.90, indicating a bearish trend. The MACD of -0.54 indicates Positive momentum. The RSI at 40.15 is Neutral, neither overbought nor oversold. The STOCH value of 50.94 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.18B | 22.80 | 19.27% | ― | 12.50% | 29.40% | |
69 Neutral | $4.84B | 20.34 | 13.30% | ― | -0.95% | -10.54% | |
67 Neutral | $1.03B | 18.87 | 27.83% | 0.97% | 8.69% | 34.58% | |
64 Neutral | $1.39B | 14.16 | 9.88% | 0.65% | -3.81% | -7.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
51 Neutral | $157.46M | -115.35 | -2.08% | ― | -7.02% | -86.27% | |
42 Neutral | $104.90M | -0.88 | -43.39% | ― | -8.73% | -1168.15% |
* Industrials Sector Average
FORR
Forrester Research
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HURN
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ICFI
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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.