Forrester Research (FORR) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue declined 10% year-over-year to $89.9 million, with both research and consulting segments experiencing double-digit decreases amid macroeconomic and geopolitical uncertainty.

• GAAP net loss widened to $87.3 million, primarily due to an $83.9 million non-cash goodwill impairment charge in the Research segment.

• Adjusted net income was $2.0 million ($0.11/share), down from $2.8 million ($0.14/share) in Q1 2024.

• Cash flow from operations improved to $26.7 million, with cash and equivalents at $134.3 million and $35 million in debt at quarter-end.

• The transition to the Forrester Decisions platform is complete, with ongoing optimization of go-to-market strategies and increased focus on executive clients.

Financial highlights

• Q1 2025 revenue was $89.9 million, down 10% year-over-year from $100.1 million.

• GAAP net loss was $87.3 million, mainly due to an $83.9 million goodwill impairment; adjusted net income was $2.0 million.

• Operating income decreased 27% to $2.5 million (2.8% margin); operating expenses decreased 10% due to headcount reductions.

• Cash, cash equivalents, and marketable investments totaled $134.3 million; free cash flow was $26.1 million.

• Debt outstanding was $35 million; weighted average interest rate was 5.68%.

Outlook and guidance

• 2025 revenue guidance is $400–$415 million, a 4–8% decline from 2024, with stronger performance expected in the second half.

• Adjusted operating margin projected at 8–9%; GAAP margin at -18.6% to -17.6%.

• Adjusted EPS guidance is $1.20–$1.35; GAAP diluted loss per share forecasted at $4.23–$4.08.

• Guidance assumes no recession; risks include tariffs, government contract cancellations, and macroeconomic volatility.

• Full-year effective tax rate expected between -3% and 7%.