Forrester Research Earnings Call Transcripts
Fiscal Year 2026
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Q2 2026 results met expectations with revenue, margin, and EPS consensus beats despite a 10% revenue decline year-over-year. AI product adoption and innovation drove growth in bookings and client engagement, while the exit from strategy consulting and market uncertainty impacted consulting and events. Guidance for 2026 is maintained, with confidence in achieving CV growth by year-end.
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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 revamping events, with modest growth and improved margins targeted for 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 geopolitical uncertainty, but cash flow, EPS, and operating margin exceeded consensus. Guidance for 2025 remains unchanged, with a 4–8% revenue decline expected and stronger performance anticipated in the second half.
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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Revenue and contract value declined year-over-year as the company nears completion of its Forrester Decisions migration, with retention metrics stabilizing and notable wins in tech and government. Guidance for 2024 remains unchanged, and tech budgets are expected to rise in 2025.
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Q2 2024 saw a 10% revenue decline and lower earnings, driven by weak consulting and events segments, despite growth in contract value bookings and progress in the Forrester Decisions migration. Product innovation and improved retention metrics support a cautiously optimistic outlook for 2025.