Forrester Research (FORR) AI Stock Analysis

• Market Cap: $148.98M
• Dividend Yield: N/A
• Average Volume (3M): 119.77K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -8.73%
• EPS Growth: -1168.15%
• Country: US
• Employees: 1,510
• Sector: Industrials
• Sector Strength: 72
• Industry: Consulting Services
• EPS (TTM): 0.37
• Shares Outstanding: 19,003,000
• 10 Day Avg. Volume: 160,805
• 30 Day Avg. Volume: 119,771
• PEG Ratio: 0.18
• Price to Book (P/B): 1.30
• Price to Sales (P/S): 0.69
• P/FCF Ratio: -41.21
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 0.39
• Enterprise Value/Gross Profit: 0.59
• Enterprise Value/Ebitda: -2.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $7.50 ▼(-5.54% 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

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

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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 7.94
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 7.94 is below the 20-day moving average (MA) of 8.11, above the 50-day MA of 7.52, and below the 200-day MA of 9.19, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 15.99 is Positive, 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
CRAI	78 Outperform	$1.23B	22.46	27.83%	0.97%	8.69%	34.58%
FCN	76 Outperform	$5.53B	22.20	13.30%	―	-0.95%	-10.54%
HURN	75 Outperform	$2.92B	27.96	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.70B	17.41	9.88%	0.65%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FC	58 Neutral	$231.63M	―	-2.08%	―	-7.02%	-86.27%
FORR	42 Neutral	$148.98M	-1.76	-43.39%	―	-8.73%	-1168.15%

Forrester Research Corporate Events

Forrester Research Announces Chief Sales Officer Departure

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.

The most recent analyst rating on (FORR) stock is a Hold with a $8.00 price target. To see the full list of analyst forecasts on Forrester Research stock, see the FORR Stock Forecast page.