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]

Exhibit 99.1 FOR IMMEDIATE RELEASE Forrester Research Reports 2025 First-Quarter Financial Results CAMBRIDGE, Mass., May 6, 2025 — Forrester Research, Inc. (Nasdaq: FORR) today announced financial results for the first quarter ended March 31, 2025, with contract value at $290.9 million, down 7% compared with the prior year. "We expect 2025 to be marked by volatility, and this is reflected in our first-quarter metrics and the decline in revenue," said CEO and Chairman George F. Colony. "However, we continue ...

Revenue Performance - Total revenues decreased by 10% from $480.8 million in 2023 to $432.5 million in 2024[106]. - Research revenues declined by 5% from $334.4 million in 2023 to $316.7 million in 2024, primarily due to a decrease in contract value[106][107]. - Consulting revenues fell by 18% from $118.2 million in 2023 to $97.3 million in 2024, attributed to lower client bookings[106][107]. - Events revenues decreased significantly by 34% from $28.2 million in 2023 to $18.5 million in 2024, due to declines in sponsorship and ticket sales[106][107]. - Research segment revenues for 2024 were $316,739, a decrease of 7% compared to 2023[129]. - Consulting segment revenues decreased by 15% in 2024, totaling $97,254, primarily due to lower client bookings[130]. - Event segment revenues saw a significant decline of 34% in 2024, amounting to $18,477, attributed to decreased sponsorship and ticket sales[132]. - Total consolidated revenues for 2024 were $432,470, reflecting a 10% year-over-year decline[129]. Client Metrics - The number of clients decreased by 14%, from 2,257 in 2023 to 1,942 in 2024, primarily due to macroeconomic conditions[91]. - Client retention remained flat at 73% year-over-year, while wallet retention improved by 2 percentage points to 89%[91]. Cost Management - Cost of services and fulfillment reduced by 11% from $204.5 million in 2023 to $182.5 million in 2024, with a decrease in headcount contributing to lower compensation costs[109]. - Selling and marketing expenses decreased by 5% from $167.4 million in 2023 to $159.6 million in 2024, primarily due to reduced headcount and commissions[110]. - General and administrative expenses fell by 14% from $68.5 million in 2023 to $58.8 million in 2024, driven by lower legal and compensation costs[111]. Income and Taxation - Net income loss was reported at (1.3%) in 2024 compared to a net income of 0.6% in 2023[105]. - Income tax expense increased by 159% from $3.2 million in 2023 to $8.4 million in 2024, with an effective tax rate rising from 51% to 318%[124]. Asset and Cash Management - The company recorded $3.6 million of right-of-use asset impairments during 2024[102]. - The company maintained a valuation allowance of $1.1 million for deferred tax assets as of December 31, 2024[103]. - Cash used in operating activities was $3.9 million in 2024, down from $21.7 million generated in 2023, primarily due to increased working capital needs[135]. - The company generated $5.0 million from investing activities in 2024, mainly from the sale of the FeedbackNow product line[136]. - As of December 31, 2024, the company had cash, cash equivalents, and marketable investments totaling $104.7 million[143]. - The company has a credit facility of up to $150 million, with $35 million outstanding as of December 31, 2024[138]. Foreign Currency Exposure - Foreign currency exchange losses amounted to $0.8 million in 2024, indicating exposure to currency fluctuations[149]. Contract and Revenue Recognition - Research revenues as a percentage of total revenues increased from approximately 70% in 2023 to approximately 73% in 2024[88]. - Contract value decreased by 5% from $323.6 million in 2023 to $307.6 million in 2024[91]. - Revenue from consulting projects is recognized as services are provided, based on fixed-fee agreements[87]. - Subscription products are recognized as revenue over the term of the contract, with deferred revenue recorded for billings in excess of revenue recognized[86]. - The company evaluates its accounting estimates and judgments regularly, particularly regarding revenue recognition and goodwill[92]. - Approximately 80% of the overall contract value was in the Forrester Decisions product platform as of December 31, 2024, compared to 62% in 2023[91]. Divestiture - Loss from the sale of divested operation amounted to $1.8 million due to the sale of the FeedbackNow product line in August 2024[120].

Core Insights - Forrester's share price has declined over 20% to approximately $11.5 per share following the release of their Q4 2024 results, down from the mid-teens range they were previously trading at [1] Financial Performance - The decline in share price is justified by the company's sales and operating income performance, indicating potential concerns regarding financial health and future growth prospects [1]

Group 1 - The core viewpoint of the analysis is that caution is warranted regarding Forrester Research (NASDAQ: FORR) until there are clear signs of revenue stabilization, as Q4 revenue declined by 9% year over year [1] - The analyst has a focus on undercovered companies, particularly in technology, software, electronics, and energy transition sectors, with over 50 companies on the watchlist [1] - The analyst has over 7 years of personal investment experience and a Master's degree in Electrical Engineering, currently working as an automotive battery R&D engineer in Sweden [1] Group 2 - The analysis emphasizes the importance of identifying asymmetric investment opportunities to achieve market-beating returns, particularly in small to mid-cap companies that are less researched [1]

Financial Data and Key Metrics Changes - For Q4 2024, overall revenue was $108 million, representing a 9% decline from Q4 2023 revenues of $118.1 million [37] - Full year revenue came in at $432.5 million, a 10% decline from $480.8 million in 2023 [37] - Net income for Q4 increased by 42% to $6.8 million, with earnings per share at $0.36, compared to $4.8 million and $0.25 in Q4 2023 [49] - Operating income increased by 32% to $8.9 million, or 8.3% of revenue, compared to $6.8 million or 5.8% of revenue in Q4 2023 [47] Business Line Data and Key Metrics Changes - Research segment contract value (CV) was $307.6 million, a 5% decline from December 2023 [39] - Consulting revenues for Q4 were $25.9 million, down 8% year-over-year, while full year revenues were $97.3 million, down 18% [44] - Events business revenues were $2.7 million for Q4, a 42% decline compared to Q4 2023, and $18.5 million for the full year, down 34% [45] Market Data and Key Metrics Changes - Client retention remained stable at 73%, with an improvement in wallet retention from 87% to 89% in 2024 [40] - The percentage of CV in multi-year contracts increased from 62% at the end of 2023 to 69% at year-end 2024 [13] Company Strategy and Development Direction - The company has completed its transition to Forrester Decisions, with 80% of contract value now in this portfolio [9] - Focus areas for 2025 include improving retention, driving growth, and enhancing events to boost retention and CV growth [22] - The company aims to shift marketing dollars to expand event audiences and incentivize sales to sign up clients for events [26] Management's Comments on Operating Environment and Future Outlook - Management expects flat contract value growth in 2025, driven by ongoing adjustments in sales culture and economic uncertainties [21] - The company anticipates revenue to decline in 2025 due to negative contract value increases in 2024, but expects cash flow to return to historical levels [22] - Management remains optimistic about the potential of Forrester Decisions and the consulting business, expecting stabilization and growth moving forward [56] Other Important Information - The company has reduced its workforce by approximately 6% to align costs with declining revenue [38] - The transition to the new in-house site has brought operational efficiencies and cost savings [16] Q&A Session Summary Question: Can you unpack the bookings commentary for Q4? - The Chief Sales Officer noted challenges in the smaller high-tech field and the government sector, attributing issues to execution rather than broader trends [62][63] Question: What is the outlook for CV growth in 2025? - Management indicated that while execution is crucial, the exposure to smaller tech clients has decreased, and they are focusing on larger clients [71][73] Question: Any developments on AI and operational efficiency? - The Chief Product Officer mentioned that Izola is being leveraged for internal efficiency, helping customer success teams find answers faster [75] Question: Can you elaborate on challenges in India? - Management indicated that challenges in India were execution-related and not indicative of a long-term problem [82] Question: How is the company improving engagement with larger customers? - Management is focusing on training salespeople to engage with senior executives and has seen success in early renewal programs [86]