Forrester Research Earnings Call Transcripts
Fiscal Year 2026
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The meeting covered director elections, approval of an amended stock purchase plan, ratification of the accounting firm, and an advisory vote on executive compensation, with all proposals passing. No questions were raised by stockholders during the Q&A.
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Q1 2026 saw improved retention and strong cash flow, despite a 5% revenue decline and negative net income. AI product adoption accelerated, with Forrester AI integrations driving client engagement and sales pipeline growth. Revenue guidance for 2026 was raised on improved metrics.
Fiscal Year 2025
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Revenue and contract value declined in 2025, but client retention and new AI products showed positive momentum. The company is restructuring to focus on research, sunsetting strategy consulting, and expects modest CV growth in 2026.
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Q3 revenue declined 8% year-over-year amid macro headwinds, but operating income and EPS rose on cost controls. The new AI Access product saw strong early demand, including a major government deal, and is expected to drive improved performance in Q4 and 2026.
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Q2 2025 revenue, margin, and EPS exceeded consensus despite an 8% revenue decline year-over-year, with research, consulting, and events all down. Client retention improved, sales pipeline grew 15% QoQ, and new research and AI tools drove engagement. 2025 guidance tightened, but margin and EPS outlook maintained.
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Revenue and contract value declined 10% year-over-year in Q1 2025 amid macroeconomic and government headwinds, but cash flow, EPS, and operating margin exceeded expectations. Guidance for 2025 remains unchanged, with a conservative outlook and ongoing focus on AI, sales pipeline growth, and client retention.
Fiscal Year 2024
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Completed transition to Forrester Decisions, with 80% of contract value now in the new platform. Revenue declined 10% year-over-year, but retention and contract value per client improved. 2025 guidance anticipates flat CV growth and a 4–8% revenue decline, with positive free cash flow expected.
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Q3 2024 saw a 10% revenue and 5% contract value decline year-over-year, but the Forrester Decisions migration is ahead of schedule, with 78% of CV now on the platform. Guidance for 2024 remains unchanged, and stabilization is expected as tech budgets rise in 2025.
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Q2 2024 saw CV bookings beat plan and strong progress in Forrester Decisions migration, but revenue fell 10% year-over-year due to weak events and consulting. Guidance for 2024 was lowered, with flat to slightly positive CV expected by year-end.