Forrester Research (FORR) Q4 2025 earnings summary

Executive summary

• 2025 saw continued revenue and contract value (CV) declines, with Q4 revenue at $101.1M and full-year revenue at $396.9M, but improvements in client retention and new product momentum, especially with AI Access.

• The company is restructuring to focus on higher-margin research, sunsetting strategy consulting, and revamping events to smaller, regional formats.

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

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

• 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), and full-year adjusted net income was $22.2M ($1.16/share), both down year-over-year.

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

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

• Q4 2025 GAAP net loss was $33.9M due to a $110.7M goodwill impairment charge.

Outlook and guidance

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

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

• Research revenue is projected to approach 80% of total revenue in 2026.

• Modest CV growth anticipated by year-end 2026, with improved retention and new product launches.

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