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].

Group 1 - The article highlights Paul Franke's extensive experience in trading and investment, emphasizing his successful track record over 38 years, including being ranked among top investment advisors nationally during the 1990s [1] - Franke's investment strategy, known as "Victory Formation," focuses on identifying supply/demand imbalances through specific stock price and volume movements, which are critical for successful stock selection [1] - The "Bottom Fishing Club" articles target deep-value stocks or those showing significant positive technical momentum reversals, while the "Volume Breakout Report" discusses stocks with strong price and volume trends [1] Group 2 - Franke recommends a diversified investment approach, suggesting that investors hold at least 50 well-positioned stocks and utilize stop-loss levels of 10% or 20% on individual investments to enhance market outperformance [1]

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Forrester Research reported a significant net loss in Q1 2025, primarily due to a revenue decline and a substantial goodwill impairment charge, despite improved operating cash flow [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets decreased to **$439.8 million** due to a goodwill reduction, while total liabilities increased and stockholders' equity significantly declined | Financial Item | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Total Current Assets** | $218,499 | $201,364 | | Goodwill | $145,267 | $227,959 | | **Total Assets** | **$439,806** | **$503,862** | | **Total Current Liabilities** | $223,687 | $203,971 | | Long-term debt | $35,000 | $35,000 | | **Total Liabilities** | **$292,372** | **$274,325** | | Retained Earnings | $84,662 | $171,934 | | **Total Stockholders' Equity** | **$147,434** | **$229,537** | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenues decreased by **10.2%** in Q1 2025, with a significant goodwill impairment charge leading to a substantial operating and net loss compared to the prior year | Metric | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total Revenues | $89,876 | $100,077 | | Goodwill Impairment | $83,895 | $0 | | Loss from Operations | ($87,591) | ($9,292) | | Net Loss | ($87,272) | ($6,673) | | Diluted Loss Per Share | ($4.62) | ($0.35) | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved to **$26.7 million** in Q1 2025, leading to a **$19.6 million** increase in cash and equivalents during the quarter | Cash Flow Activity | Three Months Ended March 31, 2025 (in thousands) | Three Months Ended March 31, 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $26,723 | $611 | | Net cash used in investing activities | ($8,472) | ($7,236) | | Net cash provided by (used in) financing activities | $235 | ($4,273) | | **Net change in cash, cash equivalents and restricted cash** | **$19,572** | **($11,550)** | [Notes to Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Key notes detail the **$83.9 million** goodwill impairment, a **6%** workforce reduction, and revenue declines across Research and Consulting segments - A triggering event, including a substantial and sustained decline in the company's stock price, led to a quantitative impairment test as of March 31, 2025, resulting in a goodwill impairment charge of **$83.9 million** for the Research reporting unit[34](index=34&type=chunk) - In January 2025, the company implemented a workforce reduction of approximately **6%**, recording **$1.5 million** in severance and related costs during the first quarter, following a **3%** workforce reduction in February 2024[81](index=81&type=chunk)[82](index=82&type=chunk) - On April 11, 2025, the company amended its headquarters lease in Cambridge, MA, extending the term for floors 4-6 through June 2039 while terminating the lease for floors 1-3 by May 2026[95](index=95&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the **10%** revenue decline to decreased Contract Value and divestiture, with a **$83.9 million** goodwill impairment driving net loss, despite improved operating cash flow and strong liquidity [Key Metrics](index=25&type=section&id=Key%20Metrics) Key performance metrics as of March 31, 2025, show a **7%** decrease in Contract Value and a **14%** drop in client numbers, with mixed retention rates | Metric | As of March 31, 2025 | As of March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Contract value | $290.9 million | $312.8 million | (7%) | | Client retention | 73% | 72% | +1 pt | | Wallet retention | 86% | 87% | (1) pt | | Number of clients | 1,822 | 2,122 | (14%) | [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Total revenues declined **10%** in Q1 2025, primarily due to lower CV and divestiture, with an **$83.9 million** goodwill impairment driving a significant operating loss | Revenue Type | Q1 2025 (in millions) | Q1 2024 (in millions) | % Change | | :--- | :--- | :--- | :--- | | Research | $68.4 | $76.6 | (11%) | | Consulting | $21.4 | $23.1 | (7%) | | Events | $0.0 | $0.4 | (93%) | | **Total** | **$89.9** | **$100.1** | **(10%)** | - A goodwill impairment charge of **$83.9 million** was recorded in Q1 2025, which is not deductible for tax purposes, and was the primary reason for the significant increase in net loss[113](index=113&type=chunk)[114](index=114&type=chunk) - The effective tax rate decreased to **1%** in Q1 2025 from **24%** in Q1 2024, primarily due to the non-deductible nature of the goodwill impairment charge[123](index=123&type=chunk) [Segment Results](index=32&type=section&id=Segment%20Results) Both Research and Consulting segments experienced revenue declines of **10%** and **11%** respectively, while expenses decreased due to reduced headcount | Segment | Q1 2025 Revenue (in thousands) | Q1 2024 Revenue (in thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Research | $73,472 | $81,224 | (10%) | | Consulting | $16,378 | $18,498 | (11%) | | Events | $26 | $355 | (93%) | | Segment | Q1 2025 Operating Income (in thousands) | Q1 2024 Operating Income (in thousands) | | :--- | :--- | :--- | | Research | $47,336 | $49,280 | | Consulting | $7,479 | $7,612 | | Events | ($738) | ($423) | [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$134.3 million** in cash and investments, significantly improved operating cash flow, and compliance with credit facility covenants - The **$26.1 million** increase in cash from operations was primarily due to a **$20.9 million** decrease in cash used for accrued expenses, resulting from lower incentive compensation payments and the payment of a legal settlement in the prior year[133](index=133&type=chunk) - As of March 31, 2025, the company had **$35.0 million** outstanding under its credit facility and was in full compliance with all financial covenants[136](index=136&type=chunk)[137](index=137&type=chunk) - The company holds **$134.3 million** in cash, cash equivalents, and marketable investments, of which **$83.9 million** is held outside the U.S. and is intended to be permanently reinvested abroad[139](index=139&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=28&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes were reported regarding the company's assessment of market risk since its 2024 year-end report - There have been no material changes in the company's assessment of its sensitivity to market risk since its 2024 year-end report[143](index=143&type=chunk) [Item 4. Controls and Procedures](index=28&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were deemed effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[144](index=144&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[145](index=145&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=29&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to ordinary course legal proceedings and accrues for probable and estimable liabilities as detailed in the financial statements - The company may be subject to legal proceedings in the ordinary course of business and accrues for losses when they are probable and estimable[94](index=94&type=chunk)[148](index=148&type=chunk) [Item 1A. Risk Factors](index=29&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor highlights the substantial goodwill impairment recorded in Q1 2025, warning of potential future impairment charges impacting financial results - A new risk factor highlights that the company recently recorded a substantial goodwill impairment charge of **$83.9 million** and that any future impairments of goodwill or other long-lived assets could negatively impact results of operations[150](index=150&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=29&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 program during the first quarter of 2025 - The company did not purchase any shares of its common stock under the stock repurchase program during the first quarter of 2025[151](index=151&type=chunk) [Other Items (3, 4, 5, 6)](index=29&type=section&id=Other%20Items) Items 3 and 4 were not applicable, while Item 5 confirmed no Rule 10b5-1 trading arrangement changes, and Item 6 listed filed exhibits - No defaults on senior securities or mine safety disclosures were reported[152](index=152&type=chunk)[153](index=153&type=chunk) - No director or officer of the company adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[154](index=154&type=chunk)

Core Insights - Forrester Research reported quarterly earnings of $0.11 per share, exceeding the Zacks Consensus Estimate of $0.08 per share, but down from $0.14 per share a year ago, resulting in an earnings surprise of 37.50% [1] - The company posted revenues of $89.88 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.89% and down from $100.08 million year-over-year [2] - Forrester Research shares have declined approximately 37.9% year-to-date, contrasting with the S&P 500's decline of 3.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.51 on revenues of $111.12 million, and for the current fiscal year, it is $1.30 on revenues of $407.81 million [7] - The estimate revisions trend for Forrester Research is currently unfavorable, leading to a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Computer - Services industry, to which Forrester Research belongs, is currently ranked in the top 37% 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] - Another company in the same industry, WidePoint, is expected to report a quarterly loss of $0.01 per share, reflecting a year-over-year change of +85.7%, with revenues anticipated to be $38.57 million, up 12.7% from the previous year [9][10]

Financial Data and Key Metrics Changes - The company generated $89.9 million in revenue, a decrease of 10% compared to $100.1 million in the prior year period [19] - Net income decreased by 28% to $2 million, with earnings per share at $0.11 compared to $0.14 in the prior year [23] - Operating income decreased by 27% to $2.5 million, representing 2.8% of revenue, down from 3.4% in the previous year [22] - Free cash flow was positive at $26.1 million, reflecting prudent cash management [17] Business Line Data and Key Metrics Changes - Research revenues decreased by 11%, with subscription research products down 6% [20] - Consulting business revenues were $21.4 million, down 7% compared to the prior year, while Advisory showed single-digit growth [21] - Events business revenues were insignificant as no events were held during the quarter [21] Market Data and Key Metrics Changes - Economic uncertainty has led to budget tightening and spending pauses, particularly in verticals like discrete manufacturing and retail [10] - The government sector, which constitutes less than 6% of total contract value, experienced minimal contract cancellations, but future renewals are expected to remain tight [9][19] Company Strategy and Development Direction - The company is focusing on optimizing its go-to-market strategy to align with its product platform, Forrester Decisions [6] - A new wave of research was launched to help companies manage through volatility, covering various topics including B2C and B2B marketing, technology, and cybersecurity [10] - The company aims to leverage its strengths in AI and cybersecurity to penetrate government accounts [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the first quarter did not meet expectations due to economic instability but expressed confidence in the company's ability to assist clients during volatile times [15][27] - The guidance for 2025 remains unchanged, with expected revenue between $400 million and $415 million, reflecting a decline of 4% to 8% compared to 2024 [26] Other Important Information - The company recorded a goodwill impairment charge of approximately $84 million due to a decline in stock price [24] - The company has approximately $80 million of stock repurchase authorization intact and a strong balance sheet with over $134 million in cash [23] Q&A Session Summary Question: Guidance and macro uncertainty - Management maintained guidance despite macro uncertainty, citing a conservative outlook and potential opportunities in the government sector [33][36] Question: Sales pipeline and performance - Sales pipelines are improving, with a 33% increase per account executive, although sales cycles are prolonged by about 10-12 days [43][53] Question: Client retention and sector challenges - The decline in total clients is primarily among smaller clients, with a focus on selling team solutions to improve retention [65][66]

Financial Data and Key Metrics Changes - Forrester generated $89.9 million in revenue for Q1 2025, a decrease of 10% compared to $100.1 million in the prior year period [18] - The company reported a net income of $2 million and earnings per share of $0.11, down from $2.8 million and $0.14 in Q1 2024, representing a significant decline [23] - Operating income decreased by 27% to $2.5 million, or 2.8% of revenue, compared to 3.4% in the same quarter last year [22] - Free cash flow for the quarter was $26.1 million, reflecting prudent cash management [17] Business Line Data and Key Metrics Changes - Research revenues decreased by 11% year-over-year, with subscription research products down 6% [20] - Consulting revenues were $21.4 million, down 7% compared to the prior year, although the Advisory segment showed single-digit growth [21] - The events business generated insignificant revenues as no events were held during the quarter [21] Market Data and Key Metrics Changes - The company experienced a 7% decline in contract value (CV) for the quarter, with expectations of flat to slightly down CV for the year [17] - Economic uncertainty led to budget tightening and spending pauses, particularly in verticals like discrete manufacturing and retail [9] - The government sector, which constitutes less than 6% of total contract value, faced some contract cancellations, but the overall impact was minimal [19] Company Strategy and Development Direction - Forrester is focusing on optimizing its go-to-market strategy to align with its product platform, Forrester Decisions [6] - The company launched a new wave of research aimed at helping clients manage through economic volatility, covering various topics including B2C and B2B marketing, technology, and cybersecurity [10] - Forrester is expanding its research in artificial intelligence and has developed its own large language model, IZOLA, to assist clients [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that economic volatility is expected to persist throughout 2025, impacting client spending and project initiation [20] - The company remains optimistic about its ability to assist clients in navigating uncertain times, emphasizing its role as a partner in optimizing costs [26] - Guidance for 2025 remains unchanged, with expected revenue between $400 million and $415 million, reflecting a decline of 4% to 8% compared to 2024 [25] Other Important Information - A goodwill impairment charge of approximately $84 million was recorded due to a decline in stock price, which does not reflect lowered long-term expectations for the business [24] - The company has approximately $80 million of stock repurchase authorization intact and a strong balance sheet with over $134 million in cash [23] Q&A Session Summary Question: Guidance and macro uncertainty - Management maintained guidance despite macro uncertainty, citing a conservative outlook and potential opportunities in the government sector [32][34] Question: Sales pipeline and execution - Sales pipelines are improving, with a 33% increase per account executive, although sales cycles are taking longer due to increased scrutiny [42][53] Question: Sector challenges - Challenges are being observed across various sectors, particularly in manufacturing and financial services, with significant impacts noted in Asia and Europe due to tariffs [60] Question: Client retention and small clients - The decline in total clients is primarily among smaller clients, with a focus on ensuring the right product fit for retention [66][68]