Revenue Performance - Research revenues increased from approximately 73% in 2024 to approximately 75% in 2025, indicating a growing reliance on subscription products [88]. - Total revenues for 2025 were composed of 74.5% from research, 22.2% from consulting, and 3.3% from events [99]. - Total revenues decreased by 8% in 2025 to $396.9 million from $432.5 million in 2024 [100]. - Research revenues declined by 7% to $295.6 million, primarily due to a decrease in CV and the divestiture of the FeedbackNow product line, which accounted for an approximate 1% revenue decline [100]. - Consulting revenues fell by 9% to $88.2 million due to lower client bookings and the decision to discontinue strategy consulting engagements [101]. - Events revenues decreased significantly by 29% to $13.1 million, primarily driven by a drop in sponsorship revenues [102]. - Research segment revenues decreased by 6% in 2025 compared to 2024, totaling $295,607 thousand, primarily due to a decline in CV and the divestiture of the FeedbackNow product line [128]. - Consulting segment revenues decreased by 13% in 2025 compared to 2024, totaling $66,229 thousand, attributed to lower client bookings [130]. - Event segment revenues decreased by 29% in 2025 compared to 2024, totaling $13,089 thousand, primarily due to a decrease in sponsorship revenues [132]. - Total segment revenues for 2025 were $396,888 thousand, reflecting an overall year-over-year revenue change of -8% [128]. Client Metrics - Contract value (CV) decreased by 6% from $311.9 million in 2024 to $292.4 million in 2025, attributed to a wallet retention of 87% and insufficient new client acquisition [91]. - Client retention improved by 4 percentage points from 73% in 2024 to 77% in 2025, driven by ongoing retention initiatives and the launch of the AI Access product [91]. - Wallet retention decreased by 2 percentage points from 89% in 2024 to 87% in 2025, primarily due to lower enrichment of contracts upon renewal [91]. - The number of clients decreased by 7% from 1,942 in 2024 to 1,797 in 2025, indicating challenges in client acquisition [91]. Financial Performance - Operating expenses increased, with cost of services and fulfillment at 43.0% and selling and marketing at 37.7% of total revenues for 2025 [99]. - Net loss for 2025 was 30.1%, a significant decline from a net loss of 1.3% in 2024, reflecting operational challenges and impairment charges [99]. - Goodwill impairment charges totaled $110.7 million in 2025, with $83.9 million recorded in Q1 and an additional $26.8 million in Q4 [96]. - Goodwill impairment charges totaled $83.9 million in Q1 2025 and an additional $26.8 million in Q4 2025, due to a decline in stock price and market conditions [109][110]. - The effective tax rate for 2025 was not applicable, reflecting a $8.4 million decrease in income tax expense due to non-deductible goodwill impairment charges [122]. Future Outlook - The company anticipates a decline in consulting revenues in 2026 by approximately 20% due to the cessation of strategy consulting [101]. - The company may need to perform a quantitative impairment test for goodwill in Q1 2026 due to continued stock price decline, which could materially impact future results [97]. Cash Flow and Investments - Cash generated from operating activities increased by $25.0 million in 2025, totaling $21.1 million, primarily due to a decrease in cash used for accrued expenses [134]. - Cash used in investing activities during 2025 was $14.1 million, mainly from net purchases of marketable investments and property and equipment [135]. - As of December 31, 2025, the company had cash, cash equivalents, and marketable investments totaling $127.7 million, including $87.8 million held outside the U.S. [142]. - The company has a credit facility with $35.0 million outstanding as of December 31, 2025, which was amended to extend its maturity to March 2029 and reduce the facility size to $50.0 million [138]. - The company plans to incur approximately $28.0 million in capital expenditures for renovations of its headquarters in Cambridge, Massachusetts, expected in the first half of 2026 [136].

Core Insights - Forrester has launched Forrester AI, a generative AI tool now certified for Microsoft Teams, allowing clients to access proprietary research and insights directly within their workflows [1] - The Forrester AI Teams app is free for current clients and enables unlimited questions and responses, enhancing decision-making by integrating research across business and technology leaders [1] - Client adoption of Forrester AI has increased significantly, with overall usage up 55% year over year and prompt volume growing by 65% [1] Company Developments - Forrester AI Access, introduced last year, provides a self-service AI offering that extends the reach of Forrester's research portfolio, making proprietary data and best practices available to more stakeholders [1] - The Forrester AI Teams app is available to all active license holders of Forrester Decisions, Forrester Market Insights, and Forrester AI Access, ensuring clients can access trusted insights while maintaining data confidentiality [1] Industry Context - Forrester has been at the forefront of AI research, helping clients navigate opportunities and risks associated with AI, emphasizing the importance of trusted judgment in business decision-making [1] - The company aims to differentiate itself from public large language models by providing human expertise backed by research and data, which is crucial for clients looking to make informed decisions [1]

Core Insights - Forrester has announced the agenda for its global customer experience (CX) event series, which includes three major events scheduled for 2026 [1] - The events are CX Summit EMEA in Amsterdam from June 8–10, CX Forum East in New York City from June 16–17, and CX Forum West in San Francisco from June 29–30 [1] - There is increasing pressure on CX, marketing, and digital business leaders to utilize AI for enhancing customer journeys and automating services and operations [1]

Core Insights - Gartner and Forrester's recent Q4 2025 results indicate a significant slowdown in B2B marketing and IT spending, reflecting broader market challenges [1][7]. Financial Performance - Gartner reported Q4 revenue of $1.8 billion, a 2.2% year-over-year increase, with full-year revenue at $6.5 billion, up 4% but showing a deceleration from a 9.6% annualized growth over the past five years [4]. - Forrester's Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decline from $432.5 million in 2024 [4]. - Gartner's adjusted EPS fell 27.8% year-over-year to $3.94, while Forrester's market cap dropped to approximately $105 million, down from around $300 million a year ago [3][4]. Market Trends - Enterprise buying cycles have extended, with increased scrutiny and elevated deal approval authority leading to slower decision-making processes [8]. - Consulting services are experiencing significant declines, with Gartner's consulting revenue down 12.8% and Forrester's down 16% in Q4 [10]. - AI is both a threat and an opportunity, with Gartner producing over 6,000 AI-related research documents and Forrester generating over $5 million in bookings from its AI Access offering [12][14]. Event Segment Performance - Gartner's Conferences segment showed resilience, with a 13.9% year-over-year increase in revenue, while Forrester's events business declined by 29% [15]. Government Spending Impact - Both companies noted headwinds from U.S. federal government spending, with Gartner's contract value growth at 4% excluding federal contracts, indicating a structural shift in this market [16]. Valuation Metrics - Gartner's market valuation has dropped to approximately 1.8 times revenue, while Forrester's is at 0.25 times revenue, reflecting historically low multiples for recurring-revenue businesses [18]. Strategic Shifts - The B2B landscape is undergoing a reset, with budgets being reallocated from traditional consulting and advisory services to AI-driven tools and platforms that offer measurable outcomes [19].

Core Insights - Forrester has announced that the rock band The Fray will headline the B2B Summit North America in 2026 [1] - The theme for this year's summit is "GTM Singularity," focusing on adapting to evolving buyer behaviors and modernizing go-to-market strategies [1] Event Details - The B2B Summit North America will take place in Phoenix from April 26 to April 29, 2026 [1] - The event aims to provide B2B marketing, sales, customer, and product leaders with research, frameworks, and guidance [1]

Core Insights - Forrester Research reported a revenue of $101.06 million for the quarter ended December 2025, reflecting a year-over-year decline of 6.5% and an EPS of $0.17 compared to $0.36 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $103.26 million, resulting in a surprise of -2.13%, while the EPS also missed the consensus estimate of $0.21 by -20.3% [1] Revenue Breakdown - Revenue from Events was $2.66 million, below the estimated $2.98 million, marking a -1% change year-over-year [4] - Revenue from Consulting was $21.79 million, compared to the estimated $22.2 million, representing a -16% change year-over-year [4] - Revenue from Research was $76.62 million, falling short of the $78.04 million estimate, indicating a -3.5% change year-over-year [4] Stock Performance - Forrester Research's shares have returned -21.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Forrester Research reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.36 per share a year ago, representing an earnings surprise of -20.30% [1] - The company posted revenues of $101.06 million for the quarter, missing the Zacks Consensus Estimate by 2.13%, and down from $108.04 million year-over-year, having surpassed consensus revenue estimates only once in the last four quarters [2] - Forrester Research shares have declined approximately 19.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $89.88 million, and for the current fiscal year, it is $1.33 on revenues of $394.74 million [7] - The Zacks Industry Rank indicates that the Computer - Services sector is in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 6% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][28] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][29] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [28][31] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4% year-over-year, and $295.6 million for the full year, a decline of 7% [25] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, a decline of 9% [26] - Events revenue for Q4 was $2.7 million, a decline of 1%, and for the full year, it decreased by 29% to $13.1 million [26] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company is focusing on four initiatives for 2026: improving retention lifecycle execution, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][12] - A restructuring plan affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [16][22] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are navigating a new paradigm shaped by AI, with increasing complexity in decision-making and technology challenges [6][7] - The company expressed optimism about returning to CV growth in 2026, driven by improvements in client retention and the success of the new AI Access product [11][19] - Management acknowledged ongoing macro uncertainties and the impact of the U.S. government's consulting pullback on performance [20][31] Other Important Information - The company plans to enhance its AI capabilities and expand its product offerings, including a rebranding of its flagship AI tool to Forrester AI [13][19] - The new event strategy will focus on smaller, localized events to better meet client needs [17][53] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [36] Question: What are the reasons for lower wallet retention? - Management indicated that volatility in the U.S. government sector and uncertainties in the U.S. business are contributing factors [38][39] Question: Can you discuss the product pipeline for the year? - The company is looking to provide more ways for clients to engage and embed Forrester's offerings into their daily work [47][48] Question: How is AI Access performing versus expectations? - AI Access exceeded expectations in Q4, with a strong pipeline and positive client engagement [72][78] Question: Will there be changes in the sales process with new leadership? - The sales strategy will be reorganized around six industries, focusing on high-potential accounts and improving retention lifecycle execution [68][71]

Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 6% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][28] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][29] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [28][31] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4% year-over-year, while full-year revenue was $295.6 million, a decline of 7% [25] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, a decline of 9% [26] - Events revenue for Q4 was $2.7 million, a decline of 1%, and for the full year, it decreased by 29% to $13.1 million [26] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company plans to return to CV growth in 2026 by focusing on four initiatives: improving retention lifecycle, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][18] - A restructuring affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [16][22] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are navigating a new paradigm shaped by AI, with increasing complexity in decision-making and technology challenges [6][7] - The company expressed optimism about the future, highlighting the potential of AI Access and the positive impact of new product offerings [19][31] - Management acknowledged macroeconomic uncertainties and the impact of the U.S. government's consulting pullback on performance [20][30] Other Important Information - The company is investing in AI to enhance its research capabilities and improve client engagement [18][32] - The new event strategy will focus on smaller, localized events to better meet client needs [17][53] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [36] Question: What are the reasons for lower wallet retention? - Management indicated that volatility in the U.S. government sector and uncertainties in the U.S. business are contributing factors [38][39] Question: Can you discuss the product pipeline for the year? - The company is focused on providing more ways for clients to engage and purchase, with new product offerings scheduled for the year [44][48] Question: How did AI Access perform in Q4? - AI Access exceeded expectations with strong performance and a significant pipeline for the upcoming year [72][78] Question: Will there be changes in the sales process with new leadership? - The sales strategy will be reorganized around six industries, focusing on high-potential accounts and improving retention lifecycle execution [68][71]

Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 7% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][29] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][19] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [29][32] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4%, and $295.6 million for the full year, down 7% [26] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, down 9% [26] - Events revenue for Q4 was $2.7 million, down 1%, and for the full year, it declined by 29% to $13.1 million [27] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10][25] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company plans to return to CV growth in 2026 by focusing on four initiatives: improving retention lifecycle, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][19] - A restructuring affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [17][21] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory and content marketing services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4 and 2025 due to macroeconomic uncertainty and the impact of U.S. government consulting pullbacks [20][32] - The company sees opportunities in the AI landscape, emphasizing the importance of proprietary data and human expertise in their offerings [9][58] - Management expressed optimism about the performance of the new AI Access product, which exceeded expectations with over $5 million in bookings since its launch [11][70] Other Important Information - The company is investing in AI to enhance its research capabilities and improve client engagement [19][32] - A new event strategy will focus on smaller, localized events to better meet client needs [18][52] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [37] Question: What are the reasons for lower wallet retention? - There is ongoing volatility in the U.S. government sector and some uncertainty in the U.S. business, but there are positive trends in international markets [39][40] Question: Can you discuss the product pipeline for 2026? - The company is looking to provide more ways for clients to buy and embed Forrester's offerings into their daily work, with several exciting products scheduled for release [47][48] Question: How is AI Access performing compared to expectations? - AI Access exceeded expectations in Q4, significantly improving deal cycle times and increasing client count, particularly with new clients [70][80]