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Forrester Research (FORR)
NASDAQ:FORR
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Forrester Research (FORR) AI Stock Analysis

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FORR

Forrester Research

(NASDAQ:FORR)

Rating:48Neutral
Price Target:
$9.50
▼(-2.86% Downside)
Forrester Research's overall stock score reflects significant financial and valuation challenges, with profitability and revenue declines being the most impactful factors. Technical indicators also show weak momentum. While there are some positive signs from the earnings call, such as client retention and sales pipeline growth, these are not enough to offset the broader financial issues.
Positive Factors
Contract Value
Recent emphasis on multiyear contracts is expected to drive improved contract value metrics, with multiyear contracts accounting for 69% of contract value in 2024, up from 62% in 2023.
Earnings
Forrester reported non-GAAP EPS of $0.51, which exceeded the forecast and the FactSet consensus forecast.
Sales Pipeline
The company’s sales pipeline has been improving month-on-month and increased 33% YOY in Q1/25.
Negative Factors
Client Retention
Client count declined 14% year-over-year and 6% sequentially, excluding divestitures.
Financial Outlook
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
Forrester's second-quarter revenue was $1 million shy of expectations, with a downside in events impacting results.

Forrester Research (FORR) vs. SPDR S&P 500 ETF (SPY)

Forrester Research Business Overview & Revenue Model

Company DescriptionForrester 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 Forrester Research, SiriusDecisions Research, and Forrester Decisions, which are designed to provide business and technology leaders with a proven path to growth through customer obsession. This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations through online access. The Consulting segment provides consulting projecs, including conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services. The Events segment hosts in-person and virtual events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights. The company sells its products and services through direct sales force in various locations in the United States, Europe, the United Kingdom, Canada, the Asia Pacific region, and internationally. Forrester Research, Inc. was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.
How the Company Makes MoneyForrester 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 Earnings Call Summary

Earnings Call Date:Jul 31, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Neutral
Forrester's earnings call reveals a challenging quarter with significant revenue declines in key segments like consulting and events. Despite these setbacks, the company has made progress in client retention, sales pipeline growth, and AI tool adoption. New research initiatives and government sector contracts provide some optimism. However, the financial metrics indicate ongoing struggles, leading to a cautiously optimistic outlook.
Q2-2025 Updates
Positive Updates
Client Retention Improvement
Client retention increased by 1 point quarter-over-quarter to 74%.
Significant Contracts in Government Sector
Several significant contracts were booked with U.S. state and local governments and European federal agencies.
Sales Pipeline Growth
The total sales pipeline continues to grow, increasing 15% from Q1 of 2025.
New Research Constructs Launched
Debuted two new research constructs: buying networks research series and Total experience score.
Events Attendance Growth
11% and 21% increase in on-site attendees at CX Summits in North America and Europe, respectively.
Improvements in AI Tool Izola
Quarter-over-quarter, the number of clients using Izola has increased 22% and prompts are up 44%.
Negative Updates
Revenue Decline
Total revenue decreased by 8%, driven by declines in research and consulting businesses and challenges in the events business.
Consulting and Events Challenges
Consulting business revenues down 5%, and events revenue decreased by 23% compared to the second quarter of 2024.
Operating Income and EPS Decline
Operating income decreased by 24%, and EPS decreased by 25% compared to Q2 of last year.
Sales Conversion Issues
There is a need to improve sales conversion rates despite a strong sales pipeline.
Company Guidance
During Forrester's second quarter 2025 conference call, the company provided guidance on several key metrics despite ongoing economic uncertainty. The company reported a total revenue decrease of 8% year-over-year, reaching $111.7 million, with specific declines of 5% and 23% in consulting and events revenues, respectively. Despite these challenges, Forrester exceeded consensus expectations for revenue, operating margin, and EPS, maintaining its margin and EPS guidance for the full year. The sales pipeline showed a notable 15% increase from the first quarter, although conversion rates were identified as an area needing improvement. Additionally, Forrester's client retention improved by 1 point to 74%, while wallet retention decreased by 1 point. The firm is optimistic about the second half of the year, particularly in the government sector, and has tightened its revenue guidance to a range of $400 million to $410 million, reflecting a 5% to 8% decline compared to 2024.

Forrester Research Financial Statement Overview

Summary
Forrester Research faces profitability challenges with a negative net profit margin and declining revenue. While there is operational cash flow resilience, the negative net income and declining free cash flow highlight the need for strategic improvements. The balance sheet remains stable with manageable leverage, but profitability and revenue growth need attention.
Income Statement
45
Neutral
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
55
Neutral
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
50
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue422.27M432.47M480.78M537.79M494.31M448.98M
Gross Profit273.27M422.82M276.30M314.01M292.50M268.08M
EBITDA-51.61M35.83M41.41M70.10M116.12M98.07M
Net Income-86.35M-5.75M3.05M21.81M24.84M9.99M
Balance Sheet
Total Assets439.81M503.86M564.17M608.44M680.13M644.22M
Cash, Cash Equivalents and Short-Term Investments134.25M104.67M124.49M123.32M134.28M90.26M
Total Debt57.00M72.57M86.85M114.38M153.03M190.09M
Total Liabilities292.37M274.32M323.91M386.78M476.22M458.45M
Stockholders Equity147.43M229.54M240.26M221.66M203.91M185.77M
Cash Flow
Free Cash Flow19.63M-7.26M16.18M33.76M96.32M38.85M
Operating Cash Flow22.25M-3.86M21.67M39.42M107.07M47.75M
Investing Cash Flow3.78M5.02M-36.76M-6.81M-29.30M-4.57M
Financing Cash Flow-11.59M-16.10M-18.30M-38.87M-49.14M-23.69M

Forrester Research Technical Analysis

Technical Analysis Sentiment
Negative
Last Price9.78
Price Trends
50DMA
10.02
Negative
100DMA
10.03
Negative
200DMA
11.87
Negative
Market Momentum
MACD
-0.12
Positive
RSI
45.40
Neutral
STOCH
31.47
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 9.78 is below the 20-day moving average (MA) of 9.79, below the 50-day MA of 10.02, and below the 200-day MA of 11.87, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 31.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$1.29B23.5529.05%1.00%9.28%44.19%
75
Outperform
$5.46B23.6012.33%-0.89%-23.72%
72
Outperform
$2.38B24.0921.55%8.99%35.56%
69
Neutral
$247.65M23.8915.47%-0.40%-40.98%
69
Neutral
$1.74B16.7211.09%0.59%-0.47%10.03%
64
Neutral
$10.73B15.657.61%2.01%2.80%-14.92%
48
Neutral
$185.30M-44.74%-9.11%-6082.17%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FORR
Forrester Research
9.71
-8.07
-45.39%
CRAI
Cra International
196.68
39.90
25.45%
FC
Franklin Covey Company
19.32
-19.68
-50.46%
FCN
FTI Consulting
168.47
-49.27
-22.63%
HURN
Huron Consulting
141.27
36.82
35.25%
ICFI
Icf International
94.32
-64.24
-40.51%

Forrester Research Corporate Events

Executive/Board ChangesShareholder Meetings
Forrester Research Elects Board at Annual Meeting
Neutral
May 14, 2025

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.

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.Date of analysis: Aug 27, 2025