CAMBRIDGE, Mass.--(BUSINESS WIRE)--Forrester Research, Inc. (Nasdaq: FORR) will broadcast its fourth-quarter and full-year earnings conference call at 4:30 p.m. ET on February 12, 2026. The call will be available at Forrester.com. Investors who wish to hear the call should log on at least 15 minutes prior to the broadcast. Participants may pre-register for the call here. Instructions are provided to ensure that the necessary audio applications are downloaded and installed. Users can obtain thes. ...

Core Insights - Forrester forecasts that automation and AI will have a modest impact on jobs through 2030, predicting that AI could account for 6% of total US job losses, equating to 10.4 million roles [1][2] - The report emphasizes that rather than eliminating jobs, AI will augment 20% of jobs over the next five years, highlighting the need for businesses to invest in employee training and upskilling [1][2] Group 1: Job Impact and Predictions - Over-automation due to AI hype can lead to costly pullbacks and damaged reputations, with over half of layoffs attributed to AI likely to be reversed as companies face operational challenges [2][4] - AI's influence on job categories is uneven, with junior positions, software developers, and customer service representatives facing the most pressure [4] Group 2: Strategic Recommendations - Organizations should prioritize governance and invest in their workforce, treating AI as a tool to enhance human talent rather than a replacement [3][4] - To maximize AI investments, companies must focus on employee AI skill development and ethical use of AI, measuring readiness through technology change quotient and artificial intelligence quotient [4]

Core Insights - Palm Valley Capital Fund experienced a 0.66% appreciation in Q4 2025, underperforming compared to the S&P SmallCap 600's 1.70% gain and the Morningstar Small Cap Total Return Index's 3.12% rise [1] - The Fund increased its allocation to Treasury bills from 74.1% to 76.3% during the quarter, while equity holdings rose by 1.12% [1] - Investments in precious metals, particularly silver, positively influenced equity performance, with silver being the Fund's largest allocation for several years [1] Company Focus: Forrester Research, Inc. - Forrester Research, Inc. (NASDAQ:FORR) had a one-month return of 14.47%, but its shares declined by 44.86% over the past 52 weeks, closing at $8.15 per share on January 5, 2026, with a market capitalization of $155.526 million [2] - The Fund sold its position in Forrester Research in Q4 2025, citing that sales typically occur when share prices reach valuations, and sometimes at a loss when confidence in valuation diminishes [3] - Forrester's revenue challenges were deemed self-inflicted, especially as larger competitor Gartner continued to grow, leading to the decision to divest from Forrester [3]

Core Viewpoint - The acquisition of Warner Bros. Discovery (WBD) by Netflix is facing significant scrutiny and skepticism from various stakeholders, raising concerns about its viability and potential risks for investors [2][3][6][10]. Group 1: Industry Concerns - The Writers Guild of America and prominent political figures, including Senators Bernie Sanders and Elizabeth Warren, have expressed concerns regarding the Netflix-WBD deal, emphasizing that it is primarily about growth and job support [1]. - Industry skepticism is prevalent, with former WarnerMedia CEO Jason Kilar stating that selling WBD to Netflix could effectively reduce competition in Hollywood, which could be cited in regulatory memos [6]. - Filmmaker James Cameron warned that the acquisition would be a "disaster," highlighting Netflix's dismissal of theatrical film distribution, reinforcing concerns about platform dominance [7]. Group 2: Regulatory and Legal Challenges - The deal is expected to face antitrust scrutiny, which could delay or prevent its closure, leading to increased financing uncertainty and potential risks for investors [3][4][9]. - Netflix has hired a prominent antitrust lawyer, indicating the anticipated scrutiny and potential challenges the acquisition may face [4]. - President Trump has indicated a preference for a buyer willing to acquire the entire company, including CNN, which Netflix has shown no interest in, while Paramount has made a higher all-cash offer for WBD [8]. Group 3: Financial Implications - The nature of Netflix's stock-heavy transaction introduces timeline risks that could extend the review process into years, contrasting with all-cash deals that typically clear regulatory reviews more quickly [9]. - Markets tend to react negatively to uncertainty, and the prevailing sentiment among investors is to back deals that are more likely to close, making the Netflix acquisition appear less favorable [10].

Core Insights - New AI shopping tools are emerging as US consumers are expected to spend a record $253 billion online during the holiday season, indicating a shift in consumer behavior towards autonomous agents for product research and purchases [2][3] - The concept of agentic commerce, where automated agents assist in transactions, is projected to grow into a $1 trillion market in the US by 2030, reflecting consumer demand for innovative shopping experiences [3] - Despite the potential, the current phase of agentic commerce is experimental, with companies facing technical challenges and the need for effective partnerships [4][9] Company Developments - Amazon has introduced its AI shopping assistant, Rufus, which aims to enhance the shopping experience by providing personalized recommendations and facilitating purchases [1][12] - OpenAI has launched a free ChatGPT tool that generates personalized gift-buying guides, showcasing the trend towards AI-driven shopping assistance [1][16] - Walmart is collaborating with AI companies to allow direct purchases through ChatGPT, indicating a willingness to integrate AI into their shopping platforms [13][14] Consumer Behavior - Over one-third of US consumers have utilized AI tools for online shopping, primarily for product research, highlighting a growing acceptance of AI in the shopping process [3] - The user experience of AI shopping assistants is seen as more intuitive compared to traditional search methods, with early indications suggesting that users referred by AI are more prepared to make purchases [6][16] Technical Challenges - Current shopping bots have not significantly improved the shopping experience, with issues related to personalization and accuracy in pricing and delivery estimates [7][10] - Retailers' websites were not originally designed for automated purchasing, leading to limitations in how effectively AI can facilitate transactions [8] Future Outlook - Partnerships with major retailers and payment processors are essential for AI companies to enable seamless shopping experiences directly within their applications [14] - The development of AI tools that can effectively communicate and navigate product catalogs is ongoing, with companies like Microsoft and Google working on solutions to enhance bot capabilities [9]

Revenue Performance - Total revenues for the three months ended September 30, 2025, decreased by 8% to $94.3 million compared to $102.5 million for the same period in 2024[119] - Research revenues declined by 6% to $72.7 million for the three months ended September 30, 2025, down from $77.1 million in the prior year[119] - Consulting revenues fell by 8% to $21.5 million for the three months ended September 30, 2025, compared to $23.4 million in the same period in 2024[121] - Events revenues plummeted by 92% to $0.2 million for the three months ended September 30, 2025, down from $2.1 million in the prior year[119] - Research segment revenues decreased by 4% to $72.652 million in Q3 2025 from $77.070 million in Q3 2024[151] - Consulting segment revenues decreased by 16% to $15.988 million in Q3 2025 from $19.034 million in Q3 2024[151] - Events segment revenues decreased by 92% to $168 thousand in Q3 2025 from $2.088 million in Q3 2024[151] - Total segment revenues for the nine months ended September 30, 2025 were $295.830 million, down 9% from $324.429 million in the prior year[151] Client Metrics - Client retention increased by 1 percentage point to 74% as of September 30, 2025, while wallet retention decreased by 2 percentage points to 86%[115] - Revenues attributable to customers outside of the U.S. accounted for 25% of total revenues for the three months ended September 30, 2025, up from 23% in the prior year[119] Operating Expenses - Operating expenses for the three months ended September 30, 2025, included cost of services and fulfillment at 40.0% of total revenues, a decrease from 41.1% in the prior year[118] - Cost of services and fulfillment expenses decreased by 11% during the three months ended September 30, 2025, primarily due to a $1.5 million decrease in compensation and benefit costs[124] - Selling and marketing expenses decreased by 6% during the three months ended September 30, 2025, primarily due to a $1.8 million decrease in compensation and benefit costs[126] - General and administrative expenses decreased by 21% during the three months ended September 30, 2025, primarily due to a $2.0 million decrease in compensation and benefit costs[129] - Cost of services and fulfillment as a percentage of total revenues was 40% for the three months ended September 30, 2025, compared to 41% for the prior year[124] - Selling and marketing expenses as a percentage of total revenues was 38% for the three months ended September 30, 2025, compared to 37% for the prior year[126] - General and administrative expenses as a percentage of total revenues was 13% for the three months ended September 30, 2025, compared to 15% for the prior year[129] Financial Losses and Impairments - Net loss for the three months ended September 30, 2025, was 2.3%, compared to a net loss of 5.7% for the same period in 2024[118] - Goodwill impairment charge of $83.9 million was recorded during the period ended March 31, 2025, due to a decline in stock price and market capitalization[134] - Loss from the sale of divested operation amounted to $1.8 million attributable to the sale of the FeedbackNow product line in August 2024[140] Taxation - Provision for income taxes decreased from $4.7 million in 2024 to $0.4 million in 2025, a decrease of $4.3 million or 91%[145] - Effective tax rate for the nine months ended September 30, 2025 was negative 3%, compared to 461% in the prior year, a change of 464 points[145] Cash Flow and Investments - Cash generated from operating activities increased by $26.3 million to $24.3 million in the nine months ended September 30, 2025 compared to a cash usage of $2.0 million in the prior year[157] - Cash used in investing activities was $15.7 million during the nine months ended September 30, 2025, primarily for marketable investments and property[158] - Capital expenditures for renovations of the headquarters are expected to be approximately $33.0 million, with $6.0 million incurred in Q4 2025[159] - The landlord will provide a tenant improvement allowance of $17.2 million, with $0.3 million expected in Q4 2025[159] - During the nine months ended September 30, 2025, the company used $2.4 million of cash in financing activities, primarily for common stock purchases and taxes related to restricted stock units[160] - As of September 30, 2025, the company had a remaining stock repurchase authorization of approximately $77.5 million[161] - The company has a credit facility providing up to $150.0 million, with $35.0 million outstanding as of September 30, 2025, and the facility expires in December 2026[162] - Future contractual cash obligations include operating lease payments of $2.8 million within one year and $44.2 million after five years from September 30, 2025[164] - As of September 30, 2025, the company had cash, cash equivalents, and marketable investments totaling $132.0 million, including $87.9 million held outside the U.S.[166] - The company received a note receivable with an original face value of $9.0 million from the sale of a non-core product line in August 2024, with a carrying value of $2.6 million as of September 30, 2025[170] - The allowance for credit losses on the note receivable is updated quarterly, reflecting the borrower's financial condition and risk of default[171] - The company was in full compliance with the covenants of its credit facility as of September 30, 2025, and expects to maintain compliance for the next 12 months[163] - Remaining lease payments within two to three years and four to five years are $15.9 million and $13.2 million, respectively[164] Market Risk - There have been no material changes in the company's assessment of market risk since the last annual report[172]

Core Insights - Forrester's shares have declined to the low-$7 range following Q3 earnings, indicating ongoing pressure on sales and earnings due to macroeconomic and internal changes [1] Financial Performance - The decline in Forrester's stock price reflects challenges in both sales and earnings, which are being impacted by broader economic conditions as well as internal factors [1]

Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Viewpoint - Forrester Research reported quarterly earnings of $0.37 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.29 per share a year ago, indicating a positive earnings surprise of +19.35% [1][2] Financial Performance - The company posted revenues of $94.3 million for the quarter ended September 2025, which was 4.91% below the Zacks Consensus Estimate and a decrease from $102.53 million in the same quarter last year [2] - Over the last four quarters, Forrester Research has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance - Forrester Research shares have declined approximately 46.7% since the beginning of the year, contrasting with the S&P 500's gain of 17.2% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $103.64 million, and for the current fiscal year, it is $1.28 on revenues of $404.35 million [7] - The trend of estimate revisions for Forrester Research was unfavorable prior to the earnings release, which may impact future stock performance [6] Industry Context - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the bottom 38% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $94.3 million, down 8% from $102.5 million in Q3 2024 [20] - Research revenue decreased to $72.7 million, a decline of 6% year-over-year, while consulting revenue was $21.5 million, also down 8% [20][21] - Operating income increased by 21% to $9.9 million, representing 10.5% of revenue, compared to 8% in Q3 2024 [23][24] - Net income rose 30% to $7.2 million, with EPS increasing 28% to $0.37 [24] Business Line Data and Key Metrics Changes - Consulting revenue declined 8% year-over-year, with strategy consulting negatively impacted by government business cuts, while advisory services grew in double digits [21][22] - Research revenue, excluding the divestiture of FeedbackNow, declined by 4% year-over-year, indicating some stabilization in the research business [18][21] - Events revenue was minimal due to the rescheduling of a major event to Q4, contributing to ongoing challenges in the events business [22] Market Data and Key Metrics Changes - Client retention remained flat at 74%, while wallet retention increased by 1.86% [21] - The consulting business is expected to face high single-digit to low double-digit declines, while the events business is projected to decline in the high 20% range [25] Company Strategy and Development Direction - The launch of AI Access aims to democratize access to research and attract new clients, with a focus on expanding the client base and enhancing self-service capabilities [10][11][12] - The company is focused on improving its go-to-market strategy, enhancing the Forrester Decisions platform, and controlling expenses amid economic challenges [17][19] - Forrester aims to position itself as a trusted source of proprietary research in the age of AI, emphasizing the importance of reliable data for decision-making [15][26] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains challenging, particularly due to U.S. federal government budget cuts affecting consulting revenue [5][19] - Despite current headwinds, management anticipates improved performance in Q4 driven by the new AI Access product and a growing sales pipeline [19][20] - Revenue guidance for 2025 has been modestly lowered to $395 to $405 million, reflecting ongoing challenges in consulting and events [25][26] Other Important Information - The company has a strong balance sheet with approximately $132 million in cash and only $35 million in debt [24][25] - A significant contract win associated with AI Access was secured with a large government agency, highlighting the product's market potential [11][18] Q&A Session Summary Question: Can you expand on the perceived disruption from AI in the research business? - Management indicated it is too early to determine the demographic for AI Access, but it is expected to attract a younger audience [28][29] Question: What improvements are seen in the sales pipeline for Q4? - There has been a noted improvement in conversion rates, particularly with the emerging tech team, which has seen a significant drop in time to close deals [30][31] Question: Are there specific industries where new client acquisition is more successful? - The company is seeing opportunities in the U.S. federal government and international markets, particularly in financial services and manufacturing [39][40]