Forrester Research (FORR) AI Stock Analysis

• Market Cap: $195.78M
• Dividend Yield: N/A
• Average Volume (3M): 69.46K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.75
• Revenue Growth: -9.61%
• EPS Growth: -18170.36%
• Country: US
• Employees: 1,510
• Sector: Industrials
• Sector Strength: 87
• Industry: Consulting Services
• EPS (TTM): 0.11
• Shares Outstanding: 19,063,000
• 10 Day Avg. Volume: 83,485
• 30 Day Avg. Volume: 69,459
• PEG Ratio: 0.50
• Price to Book (P/B): 4.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.12
• Enterprise Value/Market Cap: 4.66
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 3.34
• Enterprise Value/Ebitda: 19.68
• 1Y Price Target: $14.00
• Price Target Upside: 37.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 46 Neutral
• Price Target: $10.00 ▼(-1.77%Downside)

Forrester Research's stock score is primarily impacted by its financial performance, notably the negative profitability and revenue decline. Technical analysis indicates a bearish trend, and the valuation is risky due to negative earnings. The earnings call provides some positive aspects, such as cash flow resilience and contract retention, but these are outweighed by ongoing challenges.

Positive Factors

Earnings

Forrester reported Q1/25 non-GAAP EPS of $0.11, which exceeded the forecast and the FactSet consensus forecast of $0.08.

Financial Performance

The company’s Q1/25 adjusted EBITDA was $4.0 million, which exceeded the forecast of $2.3 million by 75% and the FactSet consensus forecast of $3.2 million by 24%.

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 first-quarter revenue was $4 million below estimates, primarily driven by lower research and consulting revenues.

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 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 Money

Forrester Research makes money through a subscription-based revenue model, where clients pay for access to research reports, data services, and tools. A significant portion of their revenue comes from selling subscriptions to their research and advisory services, which are typically annual agreements. Additionally, Forrester generates revenue from consulting services, custom research, and events, including conferences and forums where industry professionals gather to discuss trends and insights. The company also capitalizes on partnerships with other firms to enhance its service offerings and broaden its market reach, contributing to its overall earnings.

Forrester Research Financial Statement Overview

Summary

Forrester Research faces profitability challenges with a negative net profit margin and declining revenue. Despite positive operational cash flow, the negative net income and reduced free cash flow highlight the need for strategic improvements. The balance sheet is stable with manageable leverage, but improvements in profitability and revenue growth are crucial for sustainability.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	422.27M	432.47M	480.78M	537.79M	494.31M	448.98M
Gross Profit	273.27M	422.82M	276.30M	314.01M	292.50M	268.08M
EBITDA	-57.67M	35.83M	41.41M	70.10M	116.12M	98.07M
Net Income	-86.35M	-5.75M	3.05M	21.81M	24.84M	9.99M
Balance Sheet
Total Assets	439.81M	503.86M	564.17M	608.44M	680.13M	644.22M
Cash, Cash Equivalents and Short-Term Investments	75.59M	104.67M	124.49M	123.32M	134.28M	90.26M
Total Debt	57.00M	72.57M	86.85M	114.38M	153.03M	190.09M
Total Liabilities	292.37M	274.32M	323.91M	386.78M	476.22M	458.45M
Stockholders Equity	147.43M	229.54M	240.26M	221.66M	203.91M	185.77M
Cash Flow
Free Cash Flow	19.63M	-7.26M	16.18M	33.76M	96.32M	38.85M
Operating Cash Flow	22.25M	-3.86M	21.67M	39.42M	107.07M	47.75M
Investing Cash Flow	3.78M	5.02M	-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: Positive
• Last Price: 10.18
• 50DMA: Positive
• 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 Positive. The current price of 10.18 is above the 20-day moving average (MA) of 10.10, above the 50-day MA of 10.17, and below the 200-day MA of 13.25, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 52.25 is Neutral, neither overbought nor oversold. The STOCH value of 78.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FORR.

Forrester Research Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HURN	78 Outperform	$2.37B	20.60	24.88%	―	8.83%	92.48%
CRAI	76 Outperform	$1.31B	25.92	23.18%	1.05%	8.49%	21.06%
FCN	73 Outperform	$5.63B	22.38	12.46%	―	1.59%	-16.79%
ICFI	72 Outperform	$1.60B	14.95	11.64%	0.66%	1.95%	17.98%
FC	68 Neutral	$313.13M	18.16	24.81%	―	2.53%	5.95%
Sector *	62 Neutral	C$6.49B	9.24	3.44%	2.90%	6.99%	-11.09%
FORR	46 Neutral	$195.78M	―	-45.64%	―	-9.61%	-18170.36%

Forrester Research Corporate Events

Forrester Research Elects Board at Annual Meeting

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.