Forrester Research (FORR) investor relations material

Executive summary

• Q2 2026 revenue was $100.2 million, down 10% year-over-year, with declines across all segments and contract value at $283.2 million, a 3% decline.

• GAAP net income rose to $15.3 million ($0.78 per diluted share) from $3.9 million, driven by a significant income tax benefit, while adjusted net income was $7.7 million ($0.40 per share), down from $9.8 million.

• Research revenues comprised 71.5% of total revenues, with consulting and events at 20.0% and 8.5%, respectively; all segments declined year-over-year.

• Workforce reductions and restructuring actions, including an 8% workforce reduction and office closures, were implemented to align costs with lower revenue outlook.

• Accelerated AI product adoption and innovation, with hundreds of new frameworks and strong engagement in B2B and CX events.

Financial highlights

• Q2 2026 revenue was $100.2 million (down from $111.7 million); net income was $15.3 million; adjusted net income was $7.7 million.

• EPS was $0.40 adjusted and $0.78 diluted GAAP; operating income decreased 24% to $10.4 million; operating expenses fell to $96.8 million.

• Operating cash flow for six months was $25.0 million, up from $23.1 million; cash and equivalents at quarter-end were $130.8 million.

• Goodwill impairment charge of $10.8 million was recorded in Q1 2026.

• Stock buyback program restarted, with $1.1 million repurchased in H1 and $76 million authorization remaining.

Outlook and guidance

• Full-year 2026 revenue guidance is $350–$360 million, down 9–12% year-over-year; adjusted EPS guidance is $0.72–$0.82.

• GAAP operating margin expected at -3.5% to -3.0%; adjusted operating margin at 6.0% to 6.5%.

• Consulting revenues expected to decline in the low 20% range due to exit from strategy consulting; research revenue projected to decline mid-single digits.

• Effective tax rate for full year 2026 forecasted to be between -10% and -20%.

• Management expects sufficient liquidity and compliance with credit facility covenants for the next 12 months.