Forrester Research(US:FORR)2025-11-10 21:08Revenue Performance - Total revenues for the three months ended September 30, 2025, decreased by 8% to $94.3 million compared to $102.5 million for the same period in 2024[119] - Research revenues declined by 6% to $72.7 million for the three months ended September 30, 2025, down from $77.1 million in the prior year[119] - Consulting revenues fell by 8% to $21.5 million for the three months ended September 30, 2025, compared to $23.4 million in the same period in 2024[121] - Events revenues plummeted by 92% to $0.2 million for the three months ended September 30, 2025, down from $2.1 million in the prior year[119] - Research segment revenues decreased by 4% to $72.652 million in Q3 2025 from $77.070 million in Q3 2024[151] - Consulting segment revenues decreased by 16% to $15.988 million in Q3 2025 from $19.034 million in Q3 2024[151] - Events segment revenues decreased by 92% to $168 thousand in Q3 2025 from $2.088 million in Q3 2024[151] - Total segment revenues for the nine months ended September 30, 2025 were $295.830 million, down 9% from $324.429 million in the prior year[151] Client Metrics - Client retention increased by 1 percentage point to 74% as of September 30, 2025, while wallet retention decreased by 2 percentage points to 86%[115] - Revenues attributable to customers outside of the U.S. accounted for 25% of total revenues for the three months ended September 30, 2025, up from 23% in the prior year[119] Operating Expenses - Operating expenses for the three months ended September 30, 2025, included cost of services and fulfillment at 40.0% of total revenues, a decrease from 41.1% in the prior year[118] - Cost of services and fulfillment expenses decreased by 11% during the three months ended September 30, 2025, primarily due to a $1.5 million decrease in compensation and benefit costs[124] - Selling and marketing expenses decreased by 6% during the three months ended September 30, 2025, primarily due to a $1.8 million decrease in compensation and benefit costs[126] - General and administrative expenses decreased by 21% during the three months ended September 30, 2025, primarily due to a $2.0 million decrease in compensation and benefit costs[129] - Cost of services and fulfillment as a percentage of total revenues was 40% for the three months ended September 30, 2025, compared to 41% for the prior year[124] - Selling and marketing expenses as a percentage of total revenues was 38% for the three months ended September 30, 2025, compared to 37% for the prior year[126] - General and administrative expenses as a percentage of total revenues was 13% for the three months ended September 30, 2025, compared to 15% for the prior year[129] Financial Losses and Impairments - Net loss for the three months ended September 30, 2025, was 2.3%, compared to a net loss of 5.7% for the same period in 2024[118] - Goodwill impairment charge of $83.9 million was recorded during the period ended March 31, 2025, due to a decline in stock price and market capitalization[134] - Loss from the sale of divested operation amounted to $1.8 million attributable to the sale of the FeedbackNow product line in August 2024[140] Taxation - Provision for income taxes decreased from $4.7 million in 2024 to $0.4 million in 2025, a decrease of $4.3 million or 91%[145] - Effective tax rate for the nine months ended September 30, 2025 was negative 3%, compared to 461% in the prior year, a change of 464 points[145] Cash Flow and Investments - Cash generated from operating activities increased by $26.3 million to $24.3 million in the nine months ended September 30, 2025 compared to a cash usage of $2.0 million in the prior year[157] - Cash used in investing activities was $15.7 million during the nine months ended September 30, 2025, primarily for marketable investments and property[158] - Capital expenditures for renovations of the headquarters are expected to be approximately $33.0 million, with $6.0 million incurred in Q4 2025[159] - The landlord will provide a tenant improvement allowance of $17.2 million, with $0.3 million expected in Q4 2025[159] - During the nine months ended September 30, 2025, the company used $2.4 million of cash in financing activities, primarily for common stock purchases and taxes related to restricted stock units[160] - As of September 30, 2025, the company had a remaining stock repurchase authorization of approximately $77.5 million[161] - The company has a credit facility providing up to $150.0 million, with $35.0 million outstanding as of September 30, 2025, and the facility expires in December 2026[162] - Future contractual cash obligations include operating lease payments of $2.8 million within one year and $44.2 million after five years from September 30, 2025[164] - As of September 30, 2025, the company had cash, cash equivalents, and marketable investments totaling $132.0 million, including $87.9 million held outside the U.S.[166] - The company received a note receivable with an original face value of $9.0 million from the sale of a non-core product line in August 2024, with a carrying value of $2.6 million as of September 30, 2025[170] - The allowance for credit losses on the note receivable is updated quarterly, reflecting the borrower's financial condition and risk of default[171] - The company was in full compliance with the covenants of its credit facility as of September 30, 2025, and expects to maintain compliance for the next 12 months[163] - Remaining lease payments within two to three years and four to five years are $15.9 million and $13.2 million, respectively[164] Market Risk - There have been no material changes in the company's assessment of market risk since the last annual report[172]