Forrester Research (FORR)
NASDAQ:FORR
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Forrester Research
(NASDAQ:FORR)
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Rating:46Neutral
Price Target:
$5.00
▼(-12.59% Downside)
Action:ReiteratedDate:03/14/26
The score is weighed down primarily by deteriorating financial performance and multi-year revenue contraction, reinforced by a bearish technical trend. Earnings-call guidance points to continued top-line pressure in 2026 despite cost actions and improving retention/AI momentum, while valuation is difficult to assess given the negative P/E.
Positive Factors
Strong liquidity and positive free cash flow
A large cash balance (~$127.7M) and positive free cash flow (~$18M in 2025) with modest debt (~$35M) give durable liquidity. That financial flexibility supports reinvestment in products, buybacks or M&A, and provides a multi‑quarter buffer while revenue is being reshaped.
Negative Factors
Multi-year revenue decline and weak profitability
Three consecutive years of revenue decline and a 2025 net loss (net margin ~-30%, EBIT margin ~0.5%) indicate loss of scale and severe earnings pressure. Sustained top‑line shrinkage compresses operating leverage, erodes returns, and makes margin recovery difficult without durable revenue stabilization.
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Positive Factors
Negative Factors
Strong liquidity and positive free cash flow
A large cash balance (~$127.7M) and positive free cash flow (~$18M in 2025) with modest debt (~$35M) give durable liquidity. That financial flexibility supports reinvestment in products, buybacks or M&A, and provides a multi‑quarter buffer while revenue is being reshaped.
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Forrester Research (FORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$105.08M
Dividend YieldN/A
Average Volume (3M)119.77K
Price to Earnings (P/E)―
Beta (1Y)0.70
Revenue Growth-8.73%
EPS Growth-1168.15%
CountryUS
Employees1,510
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)0.17
Shares Outstanding19,176,000
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 Cap1.13
Enterprise Value/Revenue0.30
Enterprise Value/Gross Profit0.46
Enterprise Value/Ebitda-1.85
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.76
Revenue Forecast (FY)$353.74M
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 For...
How the Company Makes Money
Forrester primarily generates revenue through contracts that provide ongoing access to its research and advisory services. A major revenue stream is subscription-based (or contract-based) access to its published research and data, typically sold t...
Forrester Research Key Performance Indicators (KPIs)
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.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.
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.
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Q4-2025 Updates
Positive
Negative
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.
Read all positive updates
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
Income Statement
34
Negative
Balance Sheet
52
Neutral
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 396.89M | 432.47M | 480.78M | 537.79M | 494.31M |
| Gross Profit | 211.40M | 422.82M | 276.30M | 314.01M | 292.50M |
| EBITDA | 16.72M | 35.83M | 41.41M | 70.10M | 73.35M |
| Net Income | -119.36M | -5.75M | 3.05M | 21.81M | 24.84M |
Balance Sheet | |||||
| Total Assets | 404.03M | 503.86M | 564.17M | 608.44M | 680.13M |
| Cash, Cash Equivalents and Short-Term Investments | 127.66M | 104.67M | 124.49M | 123.32M | 134.28M |
| Total Debt | 71.89M | 72.57M | 86.85M | 114.38M | 153.03M |
| Total Liabilities | 277.51M | 274.32M | 323.91M | 386.78M | 476.22M |
| Stockholders Equity | 126.53M | 229.54M | 240.26M | 221.66M | 203.91M |
Cash Flow | |||||
| Free Cash Flow | 18.09M | -7.26M | 16.18M | 33.76M | 96.32M |
| Operating Cash Flow | 21.08M | -3.86M | 21.67M | 39.42M | 107.07M |
| Investing Cash Flow | -14.07M | 5.02M | -36.76M | -6.81M | -29.30M |
| Financing Cash Flow | -2.57M | -16.10M | -18.30M | -38.87M | -49.14M |
Forrester Research Technical Analysis
Neutral
5.72
Price Trends
6.07
Negative
6.80
Negative
8.18
Negative
Market Momentum
-0.23
Negative
49.30
Neutral
57.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FORR, the sentiment is Neutral. The current price of 5.72 is above the 20-day moving average (MA) of 5.66, below the 50-day MA of 6.07, and below the 200-day MA of 8.18, indicating a neutral trend. The MACD of -0.23 indicates Negative momentum. The RSI at 49.30 is Neutral, neither overbought nor oversold. The STOCH value of 57.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $2.11B | 28.72 | 21.03% | ― | 12.50% | 29.40% | |
70 Outperform | $1.08B | 24.31 | 26.10% | 0.97% | 8.69% | 34.58% | |
68 Neutral | $5.49B | 19.86 | 14.38% | ― | -0.95% | -10.54% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $256.34M | -18.76 | -4.11% | ― | -7.02% | -86.27% | |
60 Neutral | $1.28B | 17.06 | 9.11% | 0.65% | -3.81% | -7.05% | |
46 Neutral | $105.08M | -1.29 | -80.76% | ― | -8.73% | -1168.15% |
* Industrials Sector Average
FORR
Forrester Research
5.72
-3.53
-38.16%
CRAI
Cra International
162.63
-0.52
-0.32%
FC
Franklin Covey Company
23.01
2.81
13.91%
FCN
FTI Consulting
178.96
15.08
9.20%
HURN
Huron Consulting
128.57
-12.92
-9.13%
ICFI
Icf International
70.23
-11.99
-14.58%
Forrester Research Corporate Events
Business Operations and StrategyFinancial Disclosures
Forrester Research Announces Workforce Reduction and Restructuring Plan
Negative
Feb 9, 2026
On February 9, 2026, Forrester Research announced a workforce reduction of about 8% across geographies and functions, following notifications that began on December 15, 2025 and are slated to conclude by July 31, 2026. The company expects pre-tax ...
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.