Forrester Research(FORR) - 2025 Q3 - Quarterly Results

Financial Performance - Total revenues for Q3 2025 were $94.3 million, a decrease of 7.5% compared to $102.5 million in Q3 2024[5] - On a GAAP basis, net loss for Q3 2025 was $2.1 million, or $0.11 per diluted share, improving from a net loss of $5.8 million, or $0.30 per diluted share, in Q3 2024[5] - Adjusted net income for Q3 2025 was $7.2 million, or $0.37 per diluted share, compared to $5.6 million, or $0.29 per diluted share, in Q3 2024[6] - For the full year 2025, total revenues are expected to be approximately $395.0 million to $405.0 million, reflecting a decline of 8.7% to 6.4% year-over-year[10] - The company anticipates an adjusted operating margin of approximately 7.5% to 8.5% for the full year 2025[10] - The goodwill impairment charge for the full year 2025 is estimated at $83.9 million, which will be excluded from adjusted financial guidance[9] Revenue Breakdown - Research revenues for Q3 2025 were $72.7 million, down from $77.1 million in Q3 2024, indicating a decline of 5.4%[15] - Consulting revenues for Q3 2025 were $21.5 million, a decrease of 8.1% compared to $23.4 million in Q3 2024[15] Cash Flow and Investments - Cash, cash equivalents, and marketable investments increased to $131,952,000 as of September 30, 2025, up from $104,669,000 in 2024[18] - Net cash provided by operating activities was $24,293,000 for the three months ended September 30, 2025, compared to a negative cash flow of $2,031,000 in 2024[18] Headcount and Operations - Total headcount decreased to 1,485 as of September 30, 2025, down from 1,608 in 2024[20] - The sales force headcount was reduced to 550 as of September 30, 2025, from 597 in 2024[20] Client Metrics - The client retention rate improved to 74% in 2025, up from 73% in 2024[19] Tax and Compensation - The company reported an adjusted effective tax rate of 29% for Q3 2025, consistent with the previous year[6] - Stock-based compensation for the three months ended September 30, 2025, was $3,373,000, compared to $3,603,000 in 2024[16] Debt and Deferred Revenue - The company maintained outstanding debt of $35,000,000 for both September 30, 2025, and 2024[18] - The company reported a deferred revenue of $141,246,000 as of September 30, 2025, slightly down from $145,404,000 in 2024[18] New Offerings - Forrester launched Forrester AI Access, a new self-service offering leveraging generative AI capabilities to provide clients with trusted insights[4]