Forrester Research (FORR) Q4 2025 earnings summary

Executive summary

• 2025 saw continued revenue and contract value (CV) declines, prompting restructuring to focus on higher-margin research, sunsetting strategy consulting, and revamping events to smaller, regional formats.

• The business model is weighted toward recurring research revenue (74%), with consulting and events contributing 22% and 3%, respectively.

• Four key initiatives for 2026: retention lifecycle execution, expanded product options (notably AI), sales culture transformation, and more actionable research.

• Leadership emphasizes contract value growth, proprietary AI-driven insights, and a differentiated research platform.

• Launch of AI Access in September 2025 contributed to momentum in cash flow, client retention, and bookings.

Financial highlights

• Q4 2025 revenue was $101.1M, down from $108.0M in Q4 2024; full-year 2025 revenue was $396.9M, down from $432.5M in 2024.

• Q4 operating income fell 53% to $4.2M; full-year operating income down 21% to $30.3M.

• Q4 2025 GAAP net loss was $33.9M ($1.78/share); full-year GAAP net loss was $119.4M ($6.28/share).

• Adjusted EBITDA for 2025 was $36.3M; free cash flow for the year was $18.1M.

• Cash and equivalents at year-end 2025 were $127.7M, with $35M in debt outstanding.

Outlook and guidance

• 2026 revenue guidance is $345M–$360M, a 9%–13% decline from 2025, reflecting consulting and events restructuring.

• Adjusted operating margin expected between 6.0% and 6.5%; adjusted EPS between $0.72 and $0.82.

• 2026 GAAP operating margin expected between -0.8% and -0.3%; diluted loss per share of $0.20–$0.10.

• CV expected to show modest growth by year-end 2026, with research approaching 80% of total revenue.