Forrester Research, Inc.

What they do

Forrester provides research subscriptions, consulting projects, advisory services, and events to executives in technology, customer experience, digital, marketing, sales, and product functions. It generates revenue from subscription-based research products, individual reprint licenses, consulting and advisory engagements, and event ticket and sponsorship sales. The company emphasizes its 'contract value' (CV) products, which are its most profitable and constitute essentially all research revenues.

Revenue drivers

• Research subscriptions — Recurring subscription products recognized over contract term; research revenues were about 75% of total revenues in 2025.
• Consulting and advisory services — Fixed-fee consulting projects and services such as speeches and advisory days, recognized as services are provided or completed.
• Events — Ticket and sponsorship sales for Forrester-hosted events, recognized upon event completion.
• Reprints — Electronic reprints of research, licensed individually or by subscription, with revenue recognized over license term for data and upon access for documents.

Recent performance

For the second quarter of 2026, total revenues were $100.2 million, down from $111.7 million in the prior year, and contract value was $283.2 million, down 3% year-over-year. GAAP net income was $15.3 million, or $0.78 per diluted share, versus $3.9 million, or $0.20 per diluted share, in the same quarter of 2025. For full-year 2025, revenue was $396.9 million, down from $432.5 million in 2024, and the company reported a net loss of $119.4 million. The company has seen declining annual revenue since 2022, and the latest balance sheet shows cash of $59.5 million, long-term debt of $35.0 million, and shareholder equity of $121.6 million as of June 30, 2026.

Strategy

Management is focused on 'reinventing the research and advisory business for the AI era' through technology innovation and partnerships, including integration with Microsoft Teams and Copilot. They plan to enhance Forrester AI to allow clients to access research insights within their own work environments, aiming to improve client retention and drive contract value growth. The company has restarted its stock buyback program and plans to accelerate repurchases. They also continue to manage costs, with restructuring charges and a goodwill impairment noted in guidance.

Risks

• Declining revenue — Total revenues have declined from $537.8 million in 2022 to $396.9 million in 2025, and management guides to further decline in 2026.
• Client retention pressure — Contract value decreased 3% year-over-year in Q2 2026, indicating potential challenges in retaining client contracts.
• AI disruption — The rise of AI and public large language models may reduce demand for traditional research and advisory services, as noted in risk factors.
• Restructuring and impairment costs — The company has incurred restructuring costs and a goodwill impairment charge, which could signal ongoing operational challenges.

Outlook

For full-year 2026, management expects total revenues of approximately $350.0 million to $360.0 million, a decline of 11.8% to 9.3% versus 2025, and a GAAP operating margin of negative 3.5% to negative 3.0%. They project a GAAP diluted loss per share of $0.84 to $0.74, but adjusted diluted EPS of $0.72 to $0.82. Management emphasizes continued adoption of Forrester AI and stabilization of metrics, with new products expected in the second half of the year.