Forrester Research (FORR) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue was $111.7M, down 8% year-over-year, with declines across research, consulting, and events, and a 7% drop in contract value amid ongoing market uncertainty.

• Net income for Q2 2025 was $3.9M (down 38% YoY); six-month net loss was $83.4M, driven by an $83.9M goodwill impairment in Q1.

• Adjusted net income was $9.8M ($0.51 per diluted share), down from $12.9M ($0.68 per share) year-over-year, with adjusted operating margin at 12.2%.

• Client retention improved to 74% quarter-over-quarter, while wallet retention declined to 85%; client count fell to 1,805.

• Continued focus on AI research, product innovation, and sales pipeline growth, with new research initiatives and enhancements to the Izola AI tool.

Financial highlights

• Q2 2025 revenue: $111.7M (down 8% YoY); research: $77.9M (down 7%), consulting: $23.5M (down 5%), events: $10.2M (down 23%).

• Q2 2025 net income: $3.9M; adjusted EPS: $0.51 (down 25% YoY); operating income: $7.0M; adjusted operating income: $13.7M.

• Operating margin for Q2 2025: 6.2% (down from 9.3% YoY); adjusted margin: 12.2%.

• Operating cash flow for H1 2025: $23.1M; cash and equivalents at June 30, 2025: $134.95M; debt: $35M–$40.24M.

• Free cash flow was negative for Q2 2025 (-$4.2M) and full year 2024 (-$7.3M).

Outlook and guidance

• 2025 revenue guidance is $400M–$410M, a 5%–8% decline from the prior year.

• Adjusted operating margin expected at 8%–9%; adjusted EPS guidance: $1.20–$1.35; GAAP operating margin expected to be negative 18.4% to negative 17.4%.

• Research and consulting expected to decline mid-single digits; events to decline ~20%.

• Management expects sufficient liquidity and compliance with debt covenants for the next twelve months.