Forrester Research (FORR) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $94.3 million, down 8% year-over-year, with research, consulting, and events all declining; contract value fell 7% to $288.1 million.

• Operating margin and adjusted EPS improved due to cost controls, despite a GAAP net loss of $2.1 million and an $83.9 million goodwill impairment in Q1 2025.

• Launched Forrester AI Access, a new self-service AI research product, generating strong early demand and a major government contract.

• Wallet retention was 86% and client retention 74%, with client count dropping to 1,774.

• Cost reductions included a 6% workforce reduction and continued focus on sales execution and pipeline.

Financial highlights

• Q3 2025 research revenue was $72.7 million (-6% YoY), consulting $21.5 million (-8% YoY), and events $0.2 million (-92% YoY).

• Adjusted operating margin for Q3 2025 was 10.5%, up 253 bps; adjusted EPS was $0.37, up 28% year-over-year.

• Operating expenses decreased 11–13% year-over-year, with headcount down 8%.

• Cash and equivalents at quarter end were $132 million; debt outstanding was $35 million.

• Net cash from operations for the nine months ended September 30, 2025, was $24.3 million.

Outlook and guidance

• 2025 revenue guidance is $395–$405 million, a 6–9% decline from 2024.

• Adjusted operating margin expected at 7.5–8.5%; adjusted EPS guidance is $1.15–$1.25.

• GAAP operating margin expected at negative 19.3% to negative 18.3%; diluted loss per share of $4.50 to $4.40.

• Research business expected to decline mid-single digits; consulting high single to low double digits; events high 20% range.

• Cash and cash flows from operations expected to cover working capital and capex for the next twelve months.