Core Insights - Singapore is experiencing a shift in financial behavior, with rising costs and a focus on experiences leading to decreased long-term financial planning [1][5][11] Economic Context - 60% of Singaporean workers were living paycheck to paycheck in 2024, significantly higher than regional averages [3] - Real median employment income fell by 0.4% annually from 2019 to 2024, reversing previous growth trends [8] - The cost of living index in Singapore rose 11% year-over-year, ranking fifth globally and first in the region [6] Consumer Behavior - Young Singaporeans are increasingly spending beyond their means, with fewer making retirement plans compared to previous years [4][5] - A survey indicated that 72% of Singaporeans view the cost of living as their top concern, outpacing other issues like healthcare [7] - The rise of "buy now, pay later" schemes has contributed to a culture of immediate gratification, with BNPL transactions reaching SG$440 million in 2021 [12] Housing Market - Resale prices of public apartments rose 9.6% in 2024, exacerbating financial pressures on residents [9] - High property prices are attributed to limited land and reliance on imports, which also affects inflation [10] Generational Differences - Younger generations exhibit less urgency in saving compared to their parents, influenced by marketing and lifestyle aspirations [14][15] - The current generation prioritizes experiences over savings, with many feeling financially secure due to living arrangements and lack of immediate financial burdens [17][18]

Group 1 - Forrester Research, Inc. (FORR) is experiencing significant activity in the options market, particularly with the Sept. 19, 2025 $5 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Forrester holds a Zacks Rank 3 (Hold) in the Computer – Services industry, which is in the top 40% of the Zacks Industry Rank, with recent earnings estimates showing a slight decrease from 32 cents to 31 cents per share [3] Group 2 - The high implied volatility for Forrester may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4]

Group 1 - The core stance on Forrester Research (NASDAQ: FORR) stock is cautious due to ongoing revenue and earnings decline, with a need for clear signs of revenue stabilization before considering investment [1] - Q2 results for Forrester Research continued to show declining revenue and earnings, indicating potential challenges ahead [1] Group 2 - The individual investor focuses on undercovered companies, particularly in technology, software, electronics, and energy transition sectors, with a watchlist of up to 100 companies [1] - The investor has over 7 years of personal capital investment experience across a broad range of global companies, emphasizing a diligent study of small to mid-cap companies [1] - The goal of the analysis is to identify asymmetric investment opportunities to achieve market-beating returns [1]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements for the six months ended June 30, 2025, show a significant decline in total assets, primarily due to a goodwill impairment of $83.9 million. Total revenues decreased by 9% year-over-year to $201.5 million, leading to a net loss of $83.4 million for the six-month period, compared to a net loss of $0.4 million in the prior year. Despite the net loss, cash flow from operations improved significantly to $23.1 million from a use of $2.3 million in the same period of 2024 [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets were $436.0 million, a decrease from $503.9 million at year-end 2024, largely driven by a significant reduction in goodwill from $228.0 million to $147.4 million. Total liabilities remained relatively stable at $276.5 million, while total stockholders' equity decreased substantially to $159.5 million from $229.5 million, reflecting the net loss and goodwill impairment Balance Sheet Items | Balance Sheet Items (In thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $67,767 | $56,087 | | Goodwill | $147,376 | $227,959 | | Total assets | $436,038 | $503,862 | | **Liabilities & Equity** | | | | Deferred revenue | $154,502 | $145,404 | | Total liabilities | $276,499 | $274,325 | | Retained earnings | $88,575 | $171,934 | | Total stockholders' equity | $159,539 | $229,537 | - Goodwill decreased by **$80.6 million** from December 31, 2024, to June 30, 2025, primarily due to an impairment charge[10](index=10&type=chunk) [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) For the six months ended June 30, 2025, the company reported a net loss of $83.4 million, a stark contrast to the $0.4 million net loss in the same period of 2024. This was primarily driven by an $83.9 million goodwill impairment charge. Total revenues declined by 9.2% year-over-year to $201.5 million, with decreases across all segments: Research, Consulting, and Events Statement of Operations | Statement of Operations (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Total revenues | $201,535 | $221,902 | | Goodwill impairment | $83,895 | $0 | | Income (loss) from operations | $(80,635) | $2,022 | | Net income (loss) | $(83,359) | $(381) | | Diluted income (loss) per common share | $(4.39) | $(0.02) | - For the second quarter of 2025, net income was **$3.9 million**, down from **$6.3 million** in Q2 2024, as revenues declined **8.3%** to **$111.7 million**[12](index=12&type=chunk) [Consolidated Statements of Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) For the six months ended June 30, 2025, the company reported a comprehensive loss of $75.9 million. This includes the net loss of $83.4 million, partially offset by a $7.4 million positive foreign currency translation adjustment Comprehensive Income (Loss) | Comprehensive Income (Loss) (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net income (loss) | $(83,359) | $(381) | | Other comprehensive income (loss) | $7,446 | $(2,155) | | Comprehensive income (loss) | $(75,913) | $(2,536) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was $23.1 million, a significant improvement from the $2.3 million used in the prior-year period. Investing activities used $14.7 million, primarily for purchases of marketable investments. Financing activities used a minimal $0.3 million, compared to $8.3 million in 2024 which included significant stock repurchases Cash Flows | Cash Flows (In thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $23,096 | $(2,295) | | Net cash used in investing activities | $(14,749) | $(2,676) | | Net cash used in financing activities | $(250) | $(8,274) | | Net change in cash, cash equivalents and restricted cash | $11,877 | $(14,073) | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide critical details on key financial events, including a $83.9 million goodwill impairment charge in the Research segment, restructuring activities involving workforce reductions in January 2025 and February 2024, and the divestiture of the FeedbackNow product line in August 2024. The company also maintains a $150 million credit facility with $35 million drawn as of June 30, 2025, and is in compliance with all covenants - **Goodwill Impairment:** A goodwill impairment charge of **$83.9 million** was recorded for the Research reporting unit during the period ended March 31, 2025, triggered by a sustained decline in the company's stock price and market capitalization[34](index=34&type=chunk) - **Restructuring:** The company implemented a **6% workforce reduction** in January 2025, recording **$1.9 million** in related costs during the first half of 2025. This followed a **3% reduction** in February 2024[88](index=88&type=chunk)[87](index=87&type=chunk) - **Divestiture:** The non-core product line, FeedbackNow, was sold in August 2024 for approximately **$17.6 million**, consisting of cash, a note receivable, and an equity investment[27](index=27&type=chunk) - **Debt:** As of June 30, 2025, the company had **$35.0 million** in outstanding borrowings under its credit facility and was in full compliance with all covenants[41](index=41&type=chunk)[43](index=43&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 9% year-over-year revenue decline for the first six months of 2025 to challenging macroeconomic conditions impacting client bookings and contract values. Key metrics show a 7% decrease in Contract Value (CV) to $288.7 million, and a 12% drop in the number of clients. Despite lower revenues, operating expenses also decreased due to cost control measures, including workforce reductions. The company recorded a significant $83.9 million goodwill impairment charge in Q1 2025. Liquidity remains strong, with cash from operations increasing to $23.1 million Key Metrics | Key Metrics | As of June 30, 2025 | As of June 30, 2024 | % Change | | :--- | :--- | :--- | :--- | | Contract value | $288.7 million | $311.9 million | (7%) | | Client retention | 74% | 72% | +2 pts | | Wallet retention | 85% | 88% | (3) pts | | Number of clients | 1,805 | 2,052 | (12%) | - The decline in wallet retention to **85%** was primarily due to lower enrichment of contracts as they renewed, indicating clients are spending less on average[111](index=111&type=chunk) - A goodwill impairment charge of **$83.9 million** was recorded for the Research reporting unit as of March 31, 2025, due to a sustained decline in stock price and market capitalization, macroeconomic conditions, and a larger than expected decline in contract bookings[129](index=129&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) For the six months ended June 30, 2025, total revenues fell 9% to $201.5 million. Research revenues decreased 9%, Consulting revenues fell 6%, and Events revenues dropped 25%. Operating expenses decreased across the board, with Cost of Services down 7%, Selling and Marketing down 8%, and G&A down 7%, reflecting lower headcount and cost management. However, these savings were overshadowed by the $83.9 million goodwill impairment, resulting in an operating loss of $80.6 million Revenue Breakdown | Revenue Breakdown (Six Months Ended June 30) | 2025 (in millions) | 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Research revenues | $146.3 | $160.2 | (9%) | | Consulting revenues | $44.9 | $48.0 | (6%) | | Events revenues | $10.3 | $13.7 | (25%) | | **Total revenues** | **$201.5** | **$221.9** | **(9%)** | - The decrease in Research revenues was primarily due to the decline in Contract Value (CV) and the divestiture of the FeedbackNow product line in Q3 2024[116](index=116&type=chunk) - The decrease in Events revenues was primarily due to a decline in sponsorship revenues[118](index=118&type=chunk) [Segment Results](index=36&type=section&id=Segment%20Results) For the six months ended June 30, 2025, all three operating segments experienced revenue declines. Research segment revenue fell 8% to $157.2 million, Consulting segment revenue dropped 10% to $34.1 million, and Events segment revenue decreased 25% to $10.3 million. Research segment expenses decreased 16% due to lower headcount and professional services costs. The Events segment reported a small operating loss of $0.4 million for the period Segment Revenue | Segment Revenue (Six Months Ended June 30, 2025) | Revenue (in thousands) | YoY Change | | :--- | :--- | :--- | | Research Segment | $157,187 | (8%) | | Consulting Segment | $34,082 | (10%) | | Events Segment | $10,266 | (25%) | Segment Operating Income | Segment Operating Income (Six Months Ended June 30, 2025) | Operating Income (in thousands) | | :--- | :--- | | Research Segment | $104,869 | | Consulting Segment | $15,027 | | Events Segment | $(437) | [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity position remains solid, with $135.0 million in cash, cash equivalents, and marketable investments as of June 30, 2025. Cash from operations for the first six months of 2025 was $23.1 million, a $25.4 million increase from the prior year, mainly due to lower payments for incentive compensation. The company has $35.0 million outstanding on its credit facility and believes its current cash and operational cash flow are sufficient to meet its needs for the next twelve months - Cash from operating activities increased by **$25.4 million** for the six months ended June 30, 2025, compared to the prior year period[151](index=151&type=chunk) - As of June 30, 2025, the company had cash, cash equivalents, and marketable investments of **$135.0 million**, with **$88.0 million** held outside the U.S[158](index=158&type=chunk) - The remaining stock repurchase authorization was approximately **$80.0 million** as of June 30, 2025[153](index=153&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company states that there have been no material changes in its assessment of sensitivity to market risk since its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes in the company's assessment of its sensitivity to market risk from what was disclosed in the 2024 Form 10-K[162](index=162&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the principal executive and financial officers, evaluated the company's disclosure controls and procedures and concluded they were effective as of June 30, 2025. There were no material changes to the company's internal control over financial reporting during the quarter - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[163](index=163&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[164](index=164&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) The company reports that it currently has no material pending litigation. It may be subject to various legal proceedings in the ordinary course of business, but none are currently considered material - The company currently has no material pending litigation[105](index=105&type=chunk)[167](index=167&type=chunk) [Item 1A. Risk Factors](index=41&type=page&id=Item%201A.%20Risk%20Factors) A new risk factor has been added to supplement the disclosures in the 2024 Form 10-K. This new risk highlights the substantial goodwill impairment charge of $83.9 million recorded in Q1 2025 and warns that future impairments of goodwill or other long-lived assets could negatively impact profitability and financial results - A new risk factor was added concerning the potential for future asset impairments following the **$83.9 million** goodwill impairment charge recorded for the Research segment in the first quarter of 2025[169](index=169&type=chunk) - The triggering event for the impairment was a sustained decline in share price, macroeconomic conditions, and a larger than expected decline in contract bookings[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any shares of its common stock under its authorized stock repurchase program during the quarter ended June 30, 2025 - No shares of common stock were repurchased during the quarter ended June 30, 2025[170](index=170&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications by the Principal Executive Officer and Principal Financial Officer, and XBRL data files - Exhibits filed include officer certifications (31.1, 31.2, 32.1, 32.2) and Inline XBRL documents (101.INS, 101.SCH, 104)[176](index=176&type=chunk)

Core Insights - Forrester Research reported a revenue of $111.66 million for the quarter ended June 2025, reflecting a year-over-year decline of 8.3% and an EPS of $0.51 compared to $0.68 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $109.95 million by 1.55%, while the EPS surpassed the consensus estimate of $0.50 by 2% [1] Revenue Breakdown - Research revenue was $77.93 million, exceeding the average estimate of $75.29 million by three analysts, but showing a year-over-year decline of 6.9% [4] - Consulting revenue reached $23.49 million, surpassing the average estimate of $22.16 million, with a year-over-year decrease of 5.3% [4] - Event revenue was reported at $10.24 million, falling short of the average estimate of $12.51 million and reflecting a significant year-over-year decline of 23.3% [4] Stock Performance - Forrester Research shares have returned -4.7% over the past month, contrasting with the Zacks S&P 500 composite's increase of 2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Forrester Research reported quarterly earnings of $0.51 per share, exceeding the Zacks Consensus Estimate of $0.50 per share, but down from $0.68 per share a year ago, indicating an earnings surprise of +2.00% [1] - The company posted revenues of $111.66 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.55%, but down from $121.82 million year-over-year [2] - Forrester Research shares have declined approximately 38.1% year-to-date, contrasting with the S&P 500's gain of 8.2% [3] Earnings Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.32 on revenues of $100.58 million, and for the current fiscal year, it is $1.27 on revenues of $406.54 million [7] Industry Context - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, PDF Solutions, is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year change of +11.1%, with revenues anticipated to be $53 million, up 27.2% from the previous year [9][10]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $111.7 million, a decrease of 8% compared to $121.8 million in Q2 2024 [22] - Research revenue was $77.9 million, down 7% year-over-year, while consulting revenue was $23.4 million, also down 5% [22][23] - Net income decreased by 24% to $9.8 million, with earnings per share at $0.51 compared to $0.68 in the prior year [27][28] - Operating income decreased by 24% to $13.7 million, representing 12.2% of revenue [26] Business Line Data and Key Metrics Changes - Research and consulting revenues improved from Q1, with declines of 5% compared to 11% in Q1 [20][21] - Events revenue was $10.2 million, a decrease of 23% year-over-year, despite increased attendance and satisfaction scores [25][26] - Client retention increased to 74%, up one point from the previous quarter [23] Market Data and Key Metrics Changes - CV (contract value) declined by 7%, mirroring Q1 performance [21] - The government sector showed building momentum, with significant contracts booked with U.S. state and local governments and European federal agencies [8][9] Company Strategy and Development Direction - The company is focusing on enhancing its sales organization and improving the sales pipeline, with a 15% increase in the total sales pipeline from Q1 [10][46] - New research frameworks, such as Buying Networks and Total Experience Score, were introduced to strengthen market position [12][32] - The events business is being restructured to align with marketing efforts to drive contract value expansion [16][20] Management's Comments on Operating Environment and Future Outlook - The management expressed uncertainty in the economic outlook for the second half of the year but maintained margin and EPS guidance [8][30] - The company anticipates improved performance in the government sector and from its Forrester Decisions product portfolio [21][30] Other Important Information - The generative AI tool, iZOLA, has seen a 22% increase in clients using it, with prompts up 44% [18] - The company plans to reinstate its stock repurchase program in the second half of the year [28] Q&A Session Summary Question: What initiatives are being taken to improve the event business and sponsorships? - The company is modernizing sponsorship offerings and ensuring sales teams are skilled in selling outcome-based experiences [35][36] Question: How is the trend for multiyear deals? - There is a positive trend in multiyear contracts, with 72% of contract value now in multiyear agreements, up eight points year-over-year [38][39] Question: Is the sales force fully ramped? - The sales force is still being built out, with 75% having over 25 months of experience, and attrition is in line with expectations [41][42] Question: How is the sales pipeline performing? - The sales pipeline increased by 15% quarter-over-quarter, but conversion rates need improvement [46][47] Question: What is being done to improve conversion rates? - The focus is on early involvement in the sales process and ensuring that potential buyers are committed to the purchasing process [53][55]

Forrester's Business Overview - Forrester is a research and advisory firm that helps businesses accelerate growth through customer obsession[4] - The company has a global reach with operations in Asia Pacific, Europe, and North America, employing approximately 1,500 people[5] - 61% of Fortune 100 companies are Forrester's clients[5] Financial Performance and Strategy - In 2024, approximately 73% of Forrester's total revenue came from Research, while approximately 27% came from Consulting and Events[5] - Forrester Decisions accounted for approximately 80% of the company's contract value in 2024[5] - Forrester's adjusted EBITDA for 2024 was $46.1 million[5] - Forrester estimates the total available research market opportunity to be $78 billion, growing to $115 billion[9] Q2 2025 Financial Results - Consolidated revenue for Q2 2025 was $111.7 million, a decrease of 8% compared to the previous year[57] - Research revenue for Q2 2025 was $77.9 million, a decrease of 7% compared to the previous year[57] - Adjusted EPS for Q2 2025 was $0.51, a decrease of 25% compared to the previous year[57] - Forrester's CV(Contract Value) in Q2 2025 was $288.7 million[62]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Forrester Research reported a decline in Q2 2025 financial results, with contract value down 7% year-over-year, while revenue and EPS exceeded consensus - Contract Value (CV) stood at **$288.7 million** as of June 30, 2025, representing a **7% decrease** compared to the prior year[3](index=3&type=chunk) - CEO George F. Colony noted that despite market uncertainty impacting CV, the company delivered results above consensus and is focusing on its AI research capabilities and its generative AI tool, Izola, to help clients[4](index=4&type=chunk) Q2 2025 vs. Q2 2024 Performance Summary | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenues** | $111.7 million | $121.8 million | -8.3% | | **GAAP Net Income** | $3.9 million | $6.3 million | -38.1% | | **GAAP Diluted EPS** | $0.20 | $0.33 | -39.4% | | **Adjusted Net Income** | $9.8 million | $12.9 million | -24.0% | | **Adjusted Diluted EPS** | $0.51 | $0.68 | -25.0% | [Business Outlook (Full-Year 2025 Guidance)](index=1&type=section&id=Business%20Outlook%20(Full-Year%202025%20Guidance)) Forrester provided full-year 2025 guidance, projecting a revenue decline of 5.2% to 7.5% and a GAAP loss per share due to a goodwill impairment charge Full-Year 2025 GAAP Guidance | Metric | Guidance Range | | :--- | :--- | | **Total Revenues** | $400.0M - $410.0M (-7.5% to -5.2% YoY) | | **Operating Margin** | -18.4% to -17.4% | | **Diluted Loss Per Share** | $4.16 - $4.01 | Full-Year 2025 Adjusted Guidance | Metric | Guidance Range | | :--- | :--- | | **Adjusted Operating Margin** | 8.0% to 9.0% | | **Adjusted Diluted EPS** | $1.20 to $1.35 | - Adjusted guidance for 2025 excludes several items, most notably a goodwill impairment charge of **$83.9 million**, stock-based compensation of **$12.0 million to $13.0 million**, and amortization of acquisition-related intangible assets of approximately **$8.7 million**[9](index=9&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents detailed unaudited financial results for Q2 2025, including statements of operations, GAAP to adjusted reconciliations, and key operational metrics [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations) Q2 2025 total revenues declined to $111.7 million, with a significant six-month net loss of $83.4 million due to a goodwill impairment charge Revenue by Segment (Three Months Ended June 30) | Revenue Segment | 2025 (in thousands) | 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | **Research** | $77,926 | $83,663 | -6.9% | | **Consulting** | $23,493 | $24,811 | -5.3% | | **Events** | $10,240 | $13,351 | -23.3% | | **Total Revenues** | **$111,659** | **$121,825** | **-8.3%** | - For the six months ended June 30, 2025, the company recorded a goodwill impairment charge of **$83.9 million**, which was the primary driver of the net loss of **$83.4 million** for the period[15](index=15&type=chunk) Profitability Summary (Three Months Ended June 30) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Income from operations** | $6,956 | $11,314 | | **Net income** | $3,913 | $6,292 | [Reconciliation of GAAP to Adjusted Results](index=3&type=section&id=Reconciliation%20of%20GAAP%20to%20Adjusted%20Results) Q2 2025 adjusted income from operations was $13.7 million, with adjusted net income of $9.8 million, or $0.51 per diluted share Reconciliation of Operating Income (Three Months Ended June 30) | (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Income from operations - GAAP** | **$6,956** | **$11,314** | | Amortization of intangible assets | $2,217 | $2,513 | | Restructuring costs | $491 | $82 | | Stock-based compensation | $3,986 | $4,025 | | **Adjusted income from operations** | **$13,650** | **$17,934** | Reconciliation of Net Income (Three Months Ended June 30) | (in thousands, except per share) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | **Net income - GAAP** | **$3,913** | **$6,292** | | Adjustments (net of tax) | $5,892 | $6,620 | | **Adjusted net income** | **$9,805** | **$12,912** | | **Adjusted diluted EPS** | **$0.51** | **$0.68** | [Key Financial and Operational Metrics](index=4&type=section&id=Key%20Financial%20and%20Operational%20Metrics) As of June 30, 2025, Forrester reported $135.0 million in cash, with declines in contract value, wallet retention, and client count Select Balance Sheet Data (in thousands) | Metric | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash, cash equivalents and marketable investments** | $134,954 | $104,669 | | **Deferred revenue** | $154,502 | $145,404 | | **Debt outstanding** | $35,000 | $35,000 | Key Operational Metrics (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Contract value** | $288,700 thousand | $311,900 thousand | | **Client retention** | 74% | 72% | | **Wallet retention** | 85% | 88% | | **Number of clients** | 1,805 | 2,052 | - Total headcount decreased by **11.5%** year-over-year, from **1,656** on June 30, 2024, to **1,465** on June 30, 2025. The sales force was reduced from **592** to **540** over the same period[19](index=19&type=chunk)

Core Viewpoint - Forrester Research (FORR) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for Forrester Research reflects an improvement in its earnings outlook, which is expected to lead to increased buying pressure and a rise in stock price [4][6]. Impact of Earnings Estimate Revisions - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly due to institutional investors' reliance on these estimates for valuation [5]. - Forrester Research's rising earnings estimates and the subsequent rating upgrade suggest an enhancement in the company's underlying business, likely resulting in higher stock prices as investors respond positively to this trend [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade of Forrester Research to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11]. Current Earnings Estimates for Forrester Research - Forrester Research is projected to earn $1.27 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1.8% over the past three months [9].