Forrester Research (FORR)
NASDAQ:FORR
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Forrester Research
(NASDAQ:FORR)
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Rating:50Neutral
Price Target:
$6.00
▼(-1.80% Downside)
Action:ReiteratedDate:05/06/26
The score is held down primarily by deteriorating financial performance (multi-year revenue contraction and a large 2025 loss), with only partial support from positive cash generation and manageable leverage. Earnings-call signals are moderately positive (raised guidance low end, improving retention/AI momentum), while technicals are mixed and valuation is constrained by loss-making results; restructuring adds execution risk.
Positive Factors
High proportion of multiyear contracts
Having 72% of contract value in multiyear deals gives durable revenue visibility and reduces near‑term churn sensitivity. This structural mix supports predictable cash flow, eases sales cadence pressure, and allows management to focus on product and AI investments over quarters.
Negative Factors
Multi‑year revenue contraction
Three consecutive years of revenue decline indicate structural demand pressure or product mix challenges. Prolonged top‑line contraction reduces economies of scale, compresses operating leverage, and constrains reinvestment capacity, making margin recovery and growth harder over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High proportion of multiyear contracts
Having 72% of contract value in multiyear deals gives durable revenue visibility and reduces near‑term churn sensitivity. This structural mix supports predictable cash flow, eases sales cadence pressure, and allows management to focus on product and AI investments over quarters.
Read all positive factors
Forrester Research (FORR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$116.78M
Dividend YieldN/A
Average Volume (3M)119.77K
Price to Earnings (P/E)―
Beta (1Y)0.88
Revenue Growth-8.23%
EPS Growth-2018.47%
CountryUS
Employees1,510
SectorIndustrials
Sector Strength72
IndustryConsulting Services
Share Statistics
EPS (TTM)-6.30
Shares Outstanding19,175,894
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 Cap1.15
Enterprise Value/Revenue0.34
Enterprise Value/Gross Profit0.52
Enterprise Value/Ebitda-2.09
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)$353.14M
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presented a mix of near-term financial headwinds (quarterly revenue decline, negative Q1 net income, and consulting exits) alongside strong strategic progress: significant Forrester AI adoption, product integrations (Teams and Copilot), improved retention metrics, solid cash generation, and early sales momentum. Management raised confidence in guidance and emphasized initiatives expected to drive sustained CV growth, indicating a constructive outlook despite short-term profitability pressure.Positive Updates
Improving Retention Metrics
Wallet retention improved 2 points sequentially to 89% (up 3 points YoY). Client retention rose 1 point sequentially to 78% (up 5 points YoY). These retention gains were cited as evidence of stronger engagement and improved onboarding.
Negative Updates
Revenue Decline in Q1
Total revenue declined 5% YoY to $85.5 million (from $89.9M prior year). Research revenue declined 2% and consulting revenue declined 13% in the quarter.
Read all updates
Q1-2026 Updates
Positive
Negative
Improving Retention Metrics
Wallet retention improved 2 points sequentially to 89% (up 3 points YoY). Client retention rose 1 point sequentially to 78% (up 5 points YoY). These retention gains were cited as evidence of stronger engagement and improved onboarding.
Read all positive updates
Company Guidance
For 2026 the company raised the low end of its revenue guidance and now expects full‑year revenue of $350–$360 million (down ~9%–12% versus 2025), with research expected to decline mid‑single digits, consulting down in the low‑20s, and events down in the mid‑to‑high‑teens; management still targets operating margins 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. In Q1 the business generated $85.5 million of revenue (down 5% year‑over‑year), saw CV decline 3% in the quarter but expects CV to be slightly up for the year, delivered $19 million of free cash flow (≈$25 million excluding a $5.4 million one‑time HQ CapEx), ended the quarter with cash >$145 million and debt of $35 million, and reported KPIs including client retention of 78%, wallet retention of 89%, multiyear deals representing 72% of CV, CV per client roughly $160k–$180k, and AI Access making up just under 5% of mix (targeting ~10% by year‑end).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
6.11
Price Trends
5.98
Positive
6.77
Negative
8.12
Negative
Market Momentum
-0.08
Negative
57.86
Neutral
90.14
Negative
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 6.11 is above the 20-day moving average (MA) of 5.65, above the 50-day MA of 5.98, and below the 200-day MA of 8.12, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 90.14 is Negative, 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $4.85B | 24.15 | 15.14% | ― | 5.60% | 14.32% | |
72 Outperform | $1.95B | 23.29 | 21.83% | ― | 11.79% | -13.03% | |
70 Outperform | $986.35M | 24.89 | 26.10% | 0.97% | 9.33% | 20.44% | |
65 Neutral | $1.33B | 22.56 | 9.11% | 0.65% | -7.27% | -15.40% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $253.07M | -18.76 | -4.11% | ― | -8.43% | -115.12% | |
50 Neutral | $116.78M | -1.14 | -80.76% | ― | -8.23% | -2018.47% |
* Industrials Sector Average
FORR
Forrester Research
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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.