Forrester Research (FORR) AI Stock Analysis

• Market Cap: $143.50M
• 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): 0.37
• Shares Outstanding: 19,083,000
• 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: 0.74
• Enterprise Value/Revenue: 0.26
• Enterprise Value/Gross Profit: 0.39
• Enterprise Value/Ebitda: -1.81
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 42 Neutral
• Price Target: $6.50 ▼(-31.07% 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

Launch of AI Access

The launch of AI Access represents a strategic innovation, potentially enhancing Forrester's product offerings and market competitiveness, driving future growth.

Improved Operating Income

Improved operating income reflects enhanced operational efficiency, suggesting better cost management and potential for sustainable profitability.

Strong Cash and Debt Management

A strong cash position and low debt level provide financial flexibility, supporting strategic investments and resilience against market fluctuations.

Negative Factors

Decline in Consulting and Research Revenue

Declining consulting and research revenue indicates challenges in core business areas, potentially impacting long-term growth and market position.

Challenges in Government Consulting

Reduced government consulting revenue suggests vulnerability to sector-specific shifts, impacting diversification and stability of revenue streams.

Event Business Headwinds

Challenges in the events business highlight potential volatility and dependency on external factors, affecting revenue predictability and growth.

Forrester Research Business Overview & Revenue Model

Company Description

Forrester Research (FORR) is a leading global research and advisory firm that provides insights and guidance to business and technology leaders across various sectors, including technology, marketing, customer experience, and digital transformation. With a focus on helping organizations navigate the complexities of the digital landscape, Forrester offers a range of core products and services, including research reports, advisory services, consulting, and events tailored to support strategic decision-making and drive growth.

How the Company Makes Money

Forrester Research generates revenue primarily through its subscription-based model, which provides clients access to a wealth of research reports, data, and advisory services. Key revenue streams include annual subscriptions for its research services, which cater to various sectors such as technology, marketing, and customer experience. Additionally, the company earns income from consulting services that help organizations implement research findings and strategies. Forrester also generates revenue through events, such as conferences and webinars, which provide networking opportunities and insights from industry leaders. Strategic partnerships with technology firms and other organizations can further enhance its offerings and contribute to revenue growth, as they often lead to co-hosted events and joint research initiatives.

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: 9.43
• 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 9.43 is above the 20-day moving average (MA) of 7.43, above the 50-day MA of 8.65, and below the 200-day MA of 9.79, indicating a bearish trend. The MACD of -0.45 indicates Negative momentum. The RSI at 39.55 is Neutral, neither overbought nor oversold. The STOCH value of 34.13 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
FCN	75 Outperform	$5.17B	21.28	13.30%	―	-0.95%	-10.54%
HURN	73 Outperform	$2.85B	27.66	21.20%	―	12.50%	29.40%
CRAI	70 Outperform	$1.16B	21.33	27.83%	1.15%	8.69%	34.58%
ICFI	64 Neutral	$1.46B	14.88	9.88%	0.70%	-3.81%	-7.05%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
FC	59 Neutral	$189.87M	65.16	4.09%	―	-7.02%	-86.27%
FORR	42 Neutral	$143.50M	―	-43.39%	―	-8.73%	-1168.15%

Forrester Research Corporate Events

Forrester Research Balances Optimism and Challenges in Earnings Call

In the latest earnings call, Forrester Research presented a mixed sentiment, balancing between notable achievements and significant challenges. The company celebrated the successful launch of its AI Access product, which has garnered substantial interest and promises a positive impact on future performance. However, the call also highlighted declines in consulting and research revenue, difficulties in government consulting, and headwinds in the event business, painting a picture of both optimism and caution.

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.

Forrester Research Reports Q3 2025 Earnings Amid AI Innovations

Forrester Research, Inc. is a leading research and advisory firm that empowers leaders across various functions to accelerate growth through customer obsession, offering unique insights and guidance to help executives achieve their goals.