Forrester Research (FORR) AI Stock Analysis

• Market Cap: $203.97M
• Dividend Yield: N/A
• Average Volume (3M): 70.59K
• 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: 94
• Industry: Consulting Services
• EPS (TTM): 0.11
• Shares Outstanding: 19,063,000
• 10 Day Avg. Volume: 83,372
• 30 Day Avg. Volume: 70,589
• PEG Ratio: <0.01
• Price to Book (P/B): 1.23
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.36
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 0.60
• Enterprise Value/Ebitda: 3.52
• 1Y Price Target: $14.00
• Price Target Upside: 30.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $11.00 ▲(2.80%Upside)

Forrester Research's overall stock score reflects significant challenges in financial performance, with ongoing profitability issues and revenue decline. Technical analysis shows bearish trends, while valuation metrics are unattractive due to negative earnings. Despite some positive aspects from the earnings call, including cash flow resilience, the overarching sentiment remains cautious.

Positive Factors

Adjusted EBITDA

The company’s Q1/25 adjusted EBITDA was $4.0 million, which exceeded the forecast of $2.3 million by 75% and the FactSet consensus forecast of $3.2 million by 24%.

Earnings

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

Sales Pipeline

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

Negative Factors

Client Count

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

Contract Value

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.

Revenue Forecast

Full-year guidance was solidly below expectations, calling for revenue of $400 million-$415 million, adjusted operating margin of 8.0%-9.0%, and adjusted EPS of $1.20-$1.35, all below prior estimates.

Forrester Research Business Overview & Revenue Model

Company Description

Forrester Research, Inc. (FORR) is a leading global market research company that provides advice on existing and potential impacts of technology to its clients. Operating primarily in the information technology sector, Forrester offers a wide array of services, including research reports, consulting, and advisory services. The company's core offerings are designed to help business leaders, particularly in the technology and marketing fields, to develop strategies, understand market trends, and optimize their business operations.

How the Company Makes Money

Forrester Research makes money through a subscription-based revenue model, where clients pay for access to research reports, data services, and tools. A significant portion of their revenue comes from selling subscriptions to their research and advisory services, which are typically annual agreements. Additionally, Forrester generates revenue from consulting services, custom research, and events, including conferences and forums where industry professionals gather to discuss trends and insights. The company also capitalizes on partnerships with other firms to enhance its service offerings and broaden its market reach, contributing to its overall earnings.

Forrester Research Financial Statement Overview

Summary

Forrester Research is facing significant profitability challenges, with a negative net profit margin of -20.4% and a declining revenue trend. The balance sheet shows a stable equity position, but profitability issues need addressing. Cash flow is mixed, with positive operating cash flow but declining free cash flow.

Income Statement

Forrester Research's income statement reveals significant challenges. The gross profit margin for TTM (Trailing-Twelve-Months) is 64.7%, indicating a decent level of profitability at the gross level. However, the net profit margin is negative at -20.4%, driven by a net loss of $86.35 million, highlighting issues in cost control or revenue generation. Revenue has decreased over time, with a TTM revenue of $422.27 million, down from $537.79 million in 2022, marking a negative growth trajectory.

Balance Sheet

The balance sheet shows a stable equity position with stockholders' equity at $147.43 million. However, the debt-to-equity ratio of 0.39 indicates moderate leverage, which is manageable but should be monitored. The equity ratio stands at 33.5%, reflecting a moderate reliance on equity financing. The return on equity is negative due to net losses, pointing to current inefficiencies in generating profits from equity.

Cash Flow

Cash flow analysis reveals mixed results. Operating cash flow for TTM is positive at $22.25 million, indicating some level of operational efficiency. However, free cash flow has decreased from $33.76 million in 2022 to $19.63 million in TTM. The free cash flow to net income ratio is not meaningful due to net losses, but the operating cash flow to net income ratio is positive, suggesting better cash management relative to reported earnings.

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
EBITDA	35.83M	41.41M	70.10M	116.12M	98.07M
Net Income	-5.75M	3.05M	21.81M	24.84M	9.99M
Balance Sheet
Total Assets	503.86M	564.17M	608.44M	680.13M	644.22M
Cash, Cash Equivalents and Short-Term Investments	104.67M	124.49M	123.32M	134.28M	90.26M
Total Debt	72.57M	86.85M	114.38M	153.03M	190.09M
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: 10.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 10.7 is above the 20-day moving average (MA) of 10.16, above the 50-day MA of 10.27, and below the 200-day MA of 12.68, indicating a neutral trend. The MACD of 0.09 indicates Negative momentum. The RSI at 57.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.22 is Negative, 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
FCN	74 Outperform	$5.95B	23.70	12.33%	―	-0.89%	-23.72%
HURN	73 Outperform	$2.29B	19.88	24.88%	―	8.83%	92.48%
ICFI	69 Neutral	$1.59B	14.88	11.64%	0.65%	1.95%	17.98%
CRAI	68 Neutral	$1.22B	23.90	23.18%	1.05%	8.49%	21.06%
FC	67 Neutral	$257.77M	25.79	15.47%	―	-0.40%	-40.98%
Sector *	65 Neutral	€9.31B	16.46	3.99%	3.00%	2.81%	-19.06%
FORR	52 Neutral	$203.97M	―	-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.