Forrester Research (FORR) investor relations material

Executive summary

• Q2 2026 revenue was $100.2 million, down 10–17% year-over-year, with all major segments declining and contract value at $283.2 million, a 3% decrease.

• GAAP net income rose to $15.3 million due to a significant tax benefit, while adjusted net income and EPS declined year-over-year.

• Workforce reductions and restructuring actions were implemented, including an 8% reduction and office closures.

• AI research and product innovation accelerated, with strong adoption and integration into Microsoft Teams and Copilot.

• Major B2B and CX events saw strong engagement, with B2B Summit North America attendance up 9% year-over-year.

Financial highlights

• Q2 2026 revenue was $100.2 million (down from $111.7 million YoY); research revenue $71.7 million, consulting $20.0 million, events $8.5 million—all down year-over-year.

• GAAP net income was $15.3 million ($0.78 per diluted share); adjusted net income was $7.7 million ($0.40 per share).

• Operating income decreased 24% to $10.4 million; operating expenses fell to $96.8 million.

• Free cash flow for Q2 2026 was negative at -$12.6 million, but operating cash flow for H1 was $25.0 million.

• Cash and equivalents at quarter-end exceeded $130 million; debt outstanding was $35 million.

Outlook and guidance

• Full-year 2026 revenue guidance is $350–$360 million, a 9–12% decline year-over-year.

• Adjusted operating margin expected at 6–6.5%; adjusted EPS guidance is $0.72–$0.82.

• Consulting revenue projected to decline in the low 20% range; research and events also expected to decline.

• Management expects to remain in compliance with credit covenants and maintain sufficient liquidity.

• Effective tax rate for 2026 forecasted between -10% and -20%.