Forrester Research, Inc. (FORR) Market Cap
Forrester Research, Inc. has a market capitalization of $114.3M.
Financials based on reported quarter end 2025-12-31
Price: $5.96
▼ -0.27 (-4.33%)
Market Cap: 114.29M
NASDAQ · time unavailable
CEO: George F. Colony
Sector: Industrials
Industry: Consulting Services
IPO Date: 1996-11-27
Website: https://www.forrester.com
Forrester Research, Inc. (FORR) - Company Information
Market Cap: 114.29M · Sector: Industrials
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.
Analyst Sentiment
Based on 4 ratings
Consensus Price Target
No data available
Price & Moving Averages
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Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"Forrester Research Inc. (FORR) reports revenue of $101.1M with a net income of -$33.9M for the fiscal year ended December 31, 2025. The company continues to face challenges as indicated by negative EPS of -$1.78, reflecting profitability issues. Despite generating operating cash flow of $1.2M and positive free cash flow of $524k, the company’s negative net income raises concerns about its long-term sustainability and operational efficiency. With total assets of $404.0M against total liabilities of $277.5M, FORR maintains a relatively strong balance sheet, with equity of $126.5M and minimal net debt of $1.2M. However, the market performance has been disappointing, with a year-to-date price decline of approximately 29.5% and a one-year decline of 38.04%. This poor performance contributes to a low overall sentiment despite historical dividend payouts. The lack of dividends in recent years may further affect investor confidence moving forward."
Revenue Growth
Revenue stands at $101.1M, but growth metrics need further improvement.
Profitability
Negative net income and EPS indicate significant profitability challenges.
Cash Flow Quality
Positive operating cash flow, but limited capacity for reinvestment.
Leverage & Balance Sheet
Solid balance sheet with a manageable level of debt.
Shareholder Returns
Stock price decline exceeds 20%, impacting total returns significantly.
Analyst Sentiment & Valuation
Negative market performance suggests weak investor sentiment.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
So what: Forrester delivered clear revenue and earnings contraction in Q4/FY25 (Q4 revenue -6% YoY; EPS $0.17 vs $0.36), yet management is leaning on measurable operational progress—especially AI Access adoption and retention life-cycle execution. AI Access already contributed >$5M bookings and is reported to cut deal cycle time by nearly 50%, while client retention rose to 87%. However, the analyst pressure in the Q&A centers on how durable demand is when LLMs get adopted and why wallet retention is still weak (enrichment-driven). Management’s defense is twofold: no “churn due to AI replacements,” but rather market mistrust of public LLMs and rapid sales enablement showing proprietary data + human experts. Financially, the biggest drag remains the strategic consulting exit and events reset: strategy consulting revenue impact ~ $6M in 2026 with ~$8M backlog tailing into Q3/Q4, while events guidance embeds continued weakness. Net: improving AI/retention signals, but near-term earnings power still constrained by segment restructuring and wallet retention dynamics.
Growth Catalysts
- AI Access launched September 2025: over $5,000,000 bookings since launch
- Forrester AI (renaming/re-expansion of iZola) with broader conversational capabilities and potential embedding into client systems
- Retention life cycle execution under Julie Marringer: double-digit seat-holder retention improvement (management data) and reported 4-point year-over-year client retention improvement
- Deal cycle time improvement from AI Access: cut by almost 50%
- Product/portfolio expansion: more product options and upcoming “AI surge” scheduled for first half of 2026
Business Development
- No named customers/partners disclosed in the transcript
- High-tech market turnaround cited as an area of momentum (Q&A commentary)
Financial Highlights
- Q4 revenue: $101.1M, down 6% YoY (vs $108.0M in Q4 2024)
- Full year 2025 revenue: $396.9M, down 8% YoY (vs $432.5M in 2024); near low end of guidance range
- Q4 EPS (adjusted basis): $0.17 vs $0.36 in Q4 2024 (net income $3.2M vs $6.8M); both down 53%
- Q4 CV: down 6% YoY; revenue decline improved vs prior quarter
- Client retention: 87% (up 1 point vs start of 2025); client count increased sequentially in Q4 for first time since late 2021
- AI usage: unique users of Forrester AI up 55% YoY; prompts up 65% YoY
- Operating income: Q4 $4.2M (4.1% of revenue) vs $8.9M (8.3%); Full year $30.3M (7.6%) vs $38.5M (8.9%)
- Events revenue: Q4 $2.7M (down 1% YoY); Full year $13.1M (down 29%) driven by lower sponsorship and ticket sales
Capital Funding
- No debt paydown and no share repurchases in the quarter
- Cash at quarter end: ~$127.7M; debt: ~$35.0M
- Operating cash flow (FY25): $21.1M; Capex: $3.0M
- FY25 free cash flow: ~$18.0M
- Stock repurchase authorization remaining: >$77.0M
Strategy & Ops
- Restructuring announced Feb 9: reduced workforce by ~8% (headcount impact); exit strategy aligned to revenue and focus on expanding research contract value
- Restructuring costs: expected ~$13.5M to $14.0M total, including $9.9M recognized in Q4
- Exiting/sunsetting strategy consulting business line in early 2026; advisory/content marketing (day-long engagements; custom Total Economic Impact/Market Impact reports) continues
- Consulting strategy consulting bookings down >50% in 2025 (macro/US government instability cited)
- Events business restructuring for 2026: shift away from longer, multi-day high-travel events to shorter, localized regional events (North America/EMEA/APAC); more workshops at events noted as “massively successful” in 2025 and expected to recur
- North America go-to-market reorganization (Q&A): organized around six industries; focus on high-potential accounts; balanced scorecard adds qualitative metrics (pipeline conversions, velocity, quality)
Market Outlook
- 2026 revenue guidance: $345.0M to $360.0M (down 9% to 13% vs 2025); better expected in second half due to bookings decline headwind impacting first half
- 2026 outlook assumptions: Research down mid-single-digit; Consulting down low twenties; Events down high teens
- 2026 Research revenue mix: Research approaching ~80% of total revenue (up from ~75% in 2025)
- 2026 operating margin guidance (after cost actions + AI investments): 6.0% to 6.5%
- 2026 interest expense guidance: $2.3M
- 2026 tax rate guidance: 29%
- 2026 EPS guidance: $0.72 to $0.82
- CV guidance tone: “modest growth” as they exit the year and expect to return to CV growth in 2026
Risks & Headwinds
- Low wallet retention as primary driver of CV decline; management explicitly tied it to “lower enrichment numbers” (wallet retention now 87%, slowly improving through 2025)
- Macro uncertainty and specific US government strategy consulting pullback drove underperformance (FY results near low end of guidance)
- Events underperformance: FY events revenue down 29%, materially from lower sponsorship revenue and ticket sales; travel-budget tightening and time constraints from leaders cited
- Volatility/uncertainty in US government and US user-side of business (Q&A): Christophe Favre cited uncertainty areas and noted international pockets of momentum plus high-tech turnaround
- Risk in events business reflected in 2026 guidance: “ongoing risk contemplated in the low end” of revenue guidance
Sentiment: MIXED
Note: This summary was synthesized by AI from the FORR Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.