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Forrester Research
(NASDAQ:FORR)
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Rating:53Neutral
Price Target:
$10.50
▲(18.38% Upside)
Action:Reiterated
Date:07/31/26
The score is held down primarily by weakened financial performance (multi-year revenue contraction, profitability deterioration, and shrinking equity). Offsetting this, the stock’s technical trend is constructive with price above major moving averages, and the earnings call struck a neutral balance—AI/product traction, cost discipline, and strong cash/buybacks versus guidance that still points to continued revenue declines. Valuation remains difficult to justify given the negative P/E and no provided dividend yield.
Positive Factors
AI product momentum
Rapid adoption of Forrester AI and $10M in early bookings demonstrate durable product-market fit. Deep integrations (Microsoft Teams, Copilot) embed Forrester content into client workflows, increasing stickiness, recurring usage, and cross-sell potential that supports contract value growth over months.
Negative Factors
Persistent revenue decline
Multi-year top-line contraction reduces operating leverage and limits reinvestment capacity. Management's guidance implies further declines, meaning margin recovery and growth depend on CV improvements later in the year; prolonged revenue erosion raises structural risk to profitability and growth plans.
Read all positive and negative factors
Positive Factors
Negative Factors
AI product momentum
Rapid adoption of Forrester AI and $10M in early bookings demonstrate durable product-market fit. Deep integrations (Microsoft Teams, Copilot) embed Forrester content into client workflows, increasing stickiness, recurring usage, and cross-sell potential that supports contract value growth over months.
Read all positive factors
Forrester Research Key Performance Indicators (KPIs)
Any
Revenue by Geography
Sales broken down by region to reveal where Forrester is strongest and where it is exposed to economic or currency risk. Geographic trends highlight expansion opportunities or concentration risks that could affect future growth.
Sales broken down by region to reveal where Forrester is strongest and where it is exposed to economic or currency risk. Geographic trends highlight expansion opportunities or concentration risks that could affect future growth.
Data provided by:
The Fly
The FlyForrester Research (FORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$223.24M
Dividend YieldN/A
Average Volume (3M)119.77K
Price to Earnings (P/E)―
Beta (1Y)1.00
Revenue Growth-7.54%
EPS Growth52.04%
CountryUS
Employees1,395
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)-2.82
Shares Outstanding19,412,000
10 Day Avg. Volume160,805
30 Day Avg. Volume119,771
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.22
Price to Sales (P/S)0.39
P/FCF Ratio8.53
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)$356.50M
Forrester Research Business Overview & Revenue Model
Company Description
Forrester Research, Inc. operates as an autonomous provider of research and advisory solutions. The company's business activities are structured into three primary divisions: Research, Consulting, and Events. Within its Research division, Forreste...
How the Company Makes Money
Forrester primarily generates revenue through its Research segment, which is largely sold as subscriptions. These subscriptions typically bundle access to Forrester’s published research reports, analyst insights, proprietary data and frameworks, a...
Forrester Research Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: clear operational and product momentum (notably strong AI adoption, product integrations, advisory growth, and event engagement) and a healthy balance sheet with renewed buybacks, but these positives sit alongside notable near-term revenue and profitability headwinds (total revenue -10% YoY, consulting and events declines, and EPS compression). Management reiterated full-year guidance and expressed confidence in achieving CV growth by year-end, which tempers the near-term negatives. Overall, positive execution on product and cost fronts is offset by persistent top-line declines, producing a neutral outlook in the near term.Positive Updates
Forrester AI Adoption Surge
Forrester AI usage reached new highs: total users +33% Q2 vs Q1 and +69% YoY; Forrester AI prompts +58% Q2 vs Q1 and +105% YoY. Forrester AI eclipsed indexed search as the dominant interaction method for Forrester Decisions clients. AI Access product has generated approximately $10M in bookings since launch (~9 months). Integrations launched with Microsoft Teams and a Forrester agent for Microsoft Copilot (first mover vs peers).
Negative Updates
Total Revenue Decline
Total company revenue was $100.2M in Q2 versus $111.7M prior-year, a decline of 10% YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Forrester AI Adoption Surge
Forrester AI usage reached new highs: total users +33% Q2 vs Q1 and +69% YoY; Forrester AI prompts +58% Q2 vs Q1 and +105% YoY. Forrester AI eclipsed indexed search as the dominant interaction method for Forrester Decisions clients. AI Access product has generated approximately $10M in bookings since launch (~9 months). Integrations launched with Microsoft Teams and a Forrester agent for Microsoft Copilot (first mover vs peers).
Read all positive updates
Company Guidance
For 2026 Forrester reiterated full-year guidance of $350–360 million in revenue (down 9%–12% vs. 2025), assuming research down mid-single-digits, consulting down in the low-20s, and events down mid‑to‑high‑teens; adjusted operating margin of 6.0%–6.5%, interest expense of ~$2.3 million, a full‑year tax rate of 29%, and EPS of $0.72–0.82. Management reiterated its objective to deliver CV growth by year‑end despite Q2 headwinds (Q2 total revenue $100.2M, CV down 3%, wallet retention flat, client retention 77% — up 3 pts Y/Y, down 1 pt Q/Q — and client count 1,770, +10) and cited CV bookings growth. The balance sheet and cash‑flow position underpin the plan: cash >$130M, debt $35M, H1 operating cash flow $25M, H1 CapEx $18.2M (remaining buildout CapEx ~$11M with ~$14.5M landlord reimbursements expected), and H1 free cash flow excluding buildout of ~$20.7M; the company repurchased ~$1M of stock in Q2, has ~ $76M of repurchase authorization remaining, and plans to accelerate buybacks.Forrester Research Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
49
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 392.47M | 396.89M | 432.47M | 480.78M | 537.79M | 494.31M |
| Gross Profit | 222.72M | 226.17M | 422.82M | 276.30M | 314.01M | 292.50M |
| EBITDA | -24.17M | -95.28M | 35.83M | 41.41M | 70.10M | 73.35M |
| Net Income | -53.91M | -119.36M | -5.75M | 3.05M | 21.81M | 24.84M |
Balance Sheet | ||||||
| Total Assets | 409.07M | 404.03M | 503.86M | 564.17M | 608.44M | 680.13M |
| Cash, Cash Equivalents and Short-Term Investments | 145.47M | 127.66M | 104.67M | 124.49M | 123.32M | 134.28M |
| Total Debt | 62.34M | 71.89M | 72.57M | 86.85M | 114.38M | 153.03M |
| Total Liabilities | 303.01M | 277.51M | 274.32M | 323.91M | 386.78M | 476.22M |
| Stockholders Equity | 106.05M | 126.53M | 229.54M | 240.26M | 221.66M | 203.91M |
Cash Flow | ||||||
| Free Cash Flow | 11.40M | 18.09M | -7.26M | 16.18M | 33.76M | 96.32M |
| Operating Cash Flow | 19.94M | 21.08M | -3.86M | 21.67M | 39.42M | 107.07M |
| Investing Cash Flow | -19.66M | -14.07M | 5.02M | -36.76M | -6.81M | -29.30M |
| Financing Cash Flow | -2.66M | -2.57M | -16.10M | -18.30M | -38.87M | -49.14M |
Forrester Research Technical Analysis
Positive
8.87
Price Trends
8.69
Positive
7.39
Positive
7.35
Positive
Market Momentum
0.80
Negative
71.56
Negative
84.60
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 8.87 is below the 20-day moving average (MA) of 10.28, above the 50-day MA of 8.69, and above the 200-day MA of 7.35, indicating a bullish trend. The MACD of 0.80 indicates Negative momentum. The RSI at 71.56 is Negative, neither overbought nor oversold. The STOCH value of 84.60 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.41B | 22.25 | 25.53% | ― | 13.60% | 14.77% | |
75 Outperform | $1.46B | 17.40 | 8.35% | 0.70% | -9.45% | -20.88% | |
72 Outperform | $4.40B | 19.46 | 15.61% | ― | 7.12% | 15.93% | |
71 Outperform | $1.16B | 24.59 | 23.64% | 1.30% | 10.50% | -3.09% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $242.25M | 119.17 | 4.33% | ― | -6.14% | -78.29% | |
53 Neutral | $223.24M | -5.13 | -30.97% | ― | -7.54% | 52.04% |
* Industrials Sector Average
FORR
Forrester Research
11.99
1.83
18.01%
CRAI
Cra International
176.46
-9.00
-4.85%
FC
Franklin Covey Company
21.42
2.37
12.44%
FCN
FTI Consulting
150.87
-17.35
-10.31%
HURN
Huron Consulting
150.10
18.37
13.95%
ICFI
Icf International
85.31
-6.29
-6.87%
Forrester Research Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Forrester Research Announces Board Change Amid AI Transition
Negative
Jul 30, 2026
On July 28, 2026, board member Neil Bradford retired from Forrester’s Board of Directors with immediate effect, marking a governance change as the company pursues its strategic shift toward AI-enabled services. His departure comes amid a per...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Forrester Research Shareholders Back Governance and Stock Plan
Positive
May 13, 2026
At its Annual Meeting of Stockholders held on May 12, 2026, Forrester Research shareholders approved an amendment and restatement of the company’s employee stock purchase plan, increasing the number of shares available for purchase by 450,00...
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.