Forrester Research (FORR) Q4 2025 earnings summary

Executive summary

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

• Launch of AI Access in September 2025 contributed to client retention, client count, and over $5M in bookings.

• 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.

Financial highlights

• Q4 2025 revenue was $101.1M, down 6% year-over-year; full-year revenue was $396.9M, down 8%.

• Q4 2025 adjusted net income was $3.2M ($0.17/share), full-year adjusted net income was $22.2M ($1.16/share); GAAP net loss for 2025 was $119.4M due to a $110.7M goodwill impairment.

• Adjusted EBITDA for 2025 was $36.3M; adjusted operating margin was 7.6% for the year.

• Free cash flow for 2025 was $18.1M; cash at year-end was $127.7M, with $35M in debt.

• Operating expenses decreased by 7% for the year, driven by labor and facility savings.

Outlook and guidance

• 2026 revenue expected at $345M–$360M, down 9%–13% year-over-year, with research approaching 80% of total revenue.

• Adjusted operating margin guidance for 2026 is 6%–6.5%; adjusted EPS expected at $0.72–$0.82.

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

• Consulting revenue to decline in the low twenties percent, events in the high teens, and research in mid-single digits.

• CV expected to show modest growth exiting 2026.