Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 6% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][28] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][29] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [28][31] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4% year-over-year, and $295.6 million for the full year, a decline of 7% [25] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, a decline of 9% [26] - Events revenue for Q4 was $2.7 million, a decline of 1%, and for the full year, it decreased by 29% to $13.1 million [26] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company is focusing on four initiatives for 2026: improving retention lifecycle execution, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][12] - A restructuring plan affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [16][22] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are navigating a new paradigm shaped by AI, with increasing complexity in decision-making and technology challenges [6][7] - The company expressed optimism about returning to CV growth in 2026, driven by improvements in client retention and the success of the new AI Access product [11][19] - Management acknowledged ongoing macro uncertainties and the impact of the U.S. government's consulting pullback on performance [20][31] Other Important Information - The company plans to enhance its AI capabilities and expand its product offerings, including a rebranding of its flagship AI tool to Forrester AI [13][19] - The new event strategy will focus on smaller, localized events to better meet client needs [17][53] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [36] Question: What are the reasons for lower wallet retention? - Management indicated that volatility in the U.S. government sector and uncertainties in the U.S. business are contributing factors [38][39] Question: Can you discuss the product pipeline for the year? - The company is looking to provide more ways for clients to engage and embed Forrester's offerings into their daily work [47][48] Question: How is AI Access performing versus expectations? - AI Access exceeded expectations in Q4, with a strong pipeline and positive client engagement [72][78] Question: Will there be changes in the sales process with new leadership? - The sales strategy will be reorganized around six industries, focusing on high-potential accounts and improving retention lifecycle execution [68][71]

Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 6% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][28] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][29] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [28][31] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4% year-over-year, while full-year revenue was $295.6 million, a decline of 7% [25] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, a decline of 9% [26] - Events revenue for Q4 was $2.7 million, a decline of 1%, and for the full year, it decreased by 29% to $13.1 million [26] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company plans to return to CV growth in 2026 by focusing on four initiatives: improving retention lifecycle, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][18] - A restructuring affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [16][22] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted that clients are navigating a new paradigm shaped by AI, with increasing complexity in decision-making and technology challenges [6][7] - The company expressed optimism about the future, highlighting the potential of AI Access and the positive impact of new product offerings [19][31] - Management acknowledged macroeconomic uncertainties and the impact of the U.S. government's consulting pullback on performance [20][30] Other Important Information - The company is investing in AI to enhance its research capabilities and improve client engagement [18][32] - The new event strategy will focus on smaller, localized events to better meet client needs [17][53] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [36] Question: What are the reasons for lower wallet retention? - Management indicated that volatility in the U.S. government sector and uncertainties in the U.S. business are contributing factors [38][39] Question: Can you discuss the product pipeline for the year? - The company is focused on providing more ways for clients to engage and purchase, with new product offerings scheduled for the year [44][48] Question: How did AI Access perform in Q4? - AI Access exceeded expectations with strong performance and a significant pipeline for the upcoming year [72][78] Question: Will there be changes in the sales process with new leadership? - The sales strategy will be reorganized around six industries, focusing on high-potential accounts and improving retention lifecycle execution [68][71]

Financial Data and Key Metrics Changes - In Q4 2025, revenue declined by 7% year-over-year to $101.1 million, while full-year revenue decreased by 8% to $396.9 million compared to $432.5 million in 2024 [20][29] - Free cash flow for 2025 was approximately $18 million, with client retention reaching 87%, up from the start of 2025 [10][19] - Net income for Q4 decreased by 53% to $3.2 million, with earnings per share at $0.17, while full-year net income decreased by 21% to $22.2 million [29][32] Business Line Data and Key Metrics Changes - Research segment revenue for Q4 was $76.6 million, down 4%, and $295.6 million for the full year, down 7% [26] - Consulting revenue for Q4 was $21.8 million, down 16%, and $88.2 million for the full year, down 9% [26] - Events revenue for Q4 was $2.7 million, down 1%, and for the full year, it declined by 29% to $13.1 million [27] Market Data and Key Metrics Changes - Client count increased in Q4 for the first time since Q4 2021, reflecting a positive trend in client engagement [10][25] - The percentage of contract value (CV) from multi-year deals increased to 72% at year-end, up from 69% in Q4 2024 [10] Company Strategy and Development Direction - The company plans to return to CV growth in 2026 by focusing on four initiatives: improving retention lifecycle, introducing more product options, fostering a culture of growth in sales, and producing actionable research [11][19] - A restructuring affecting 8% of employees was announced to align costs with revenue and focus on expanding research contract value [17][21] - The strategy consulting business will be exited due to ongoing instability and competition, while advisory and content marketing services will continue [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in Q4 and 2025 due to macroeconomic uncertainty and the impact of U.S. government consulting pullbacks [20][32] - The company sees opportunities in the AI landscape, emphasizing the importance of proprietary data and human expertise in their offerings [9][58] - Management expressed optimism about the performance of the new AI Access product, which exceeded expectations with over $5 million in bookings since its launch [11][70] Other Important Information - The company is investing in AI to enhance its research capabilities and improve client engagement [19][32] - A new event strategy will focus on smaller, localized events to better meet client needs [18][52] Q&A Session Summary Question: Can you elaborate on the consulting restructure and expected revenue impact? - The revenue impact from sunsetting strategy consulting is approximately $6 million, with a backlog of about $8 million to service throughout 2026 [37] Question: What are the reasons for lower wallet retention? - There is ongoing volatility in the U.S. government sector and some uncertainty in the U.S. business, but there are positive trends in international markets [39][40] Question: Can you discuss the product pipeline for 2026? - The company is looking to provide more ways for clients to buy and embed Forrester's offerings into their daily work, with several exciting products scheduled for release [47][48] Question: How is AI Access performing compared to expectations? - AI Access exceeded expectations in Q4, significantly improving deal cycle times and increasing client count, particularly with new clients [70][80]

Forward-Looking Statements & Non-GAAP Measures This presentation may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. These projections or statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see the Company's Annual Report to shareholders and its filings with the SEC, including its recent filings on Forms 10-K and 10-Q, for a ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $94.3 million, down 8% from $102.5 million in Q3 2024 [20] - Research revenue decreased to $72.7 million, a decline of 6% year-over-year, while consulting revenue was $21.5 million, also down 8% [20][21] - Operating income increased by 21% to $9.9 million, representing 10.5% of revenue, compared to 8% in Q3 2024 [23][24] - Net income rose 30% to $7.2 million, with EPS increasing 28% to $0.37 [24] Business Line Data and Key Metrics Changes - Consulting revenue declined 8% year-over-year, with strategy consulting negatively impacted by government business cuts, while advisory services grew in double digits [21][22] - Research revenue, excluding the divestiture of FeedbackNow, declined by 4% year-over-year, indicating some stabilization in the research business [18][21] - Events revenue was minimal due to the rescheduling of a major event to Q4, contributing to ongoing challenges in the events business [22] Market Data and Key Metrics Changes - Client retention remained flat at 74%, while wallet retention increased by 1.86% [21] - The consulting business is expected to face high single-digit to low double-digit declines, while the events business is projected to decline in the high 20% range [25] Company Strategy and Development Direction - The launch of AI Access aims to democratize access to research and attract new clients, with a focus on expanding the client base and enhancing self-service capabilities [10][11][12] - The company is focused on improving its go-to-market strategy, enhancing the Forrester Decisions platform, and controlling expenses amid economic challenges [17][19] - Forrester aims to position itself as a trusted source of proprietary research in the age of AI, emphasizing the importance of reliable data for decision-making [15][26] Management's Comments on Operating Environment and Future Outlook - The macroeconomic environment remains challenging, particularly due to U.S. federal government budget cuts affecting consulting revenue [5][19] - Despite current headwinds, management anticipates improved performance in Q4 driven by the new AI Access product and a growing sales pipeline [19][20] - Revenue guidance for 2025 has been modestly lowered to $395 to $405 million, reflecting ongoing challenges in consulting and events [25][26] Other Important Information - The company has a strong balance sheet with approximately $132 million in cash and only $35 million in debt [24][25] - A significant contract win associated with AI Access was secured with a large government agency, highlighting the product's market potential [11][18] Q&A Session Summary Question: Can you expand on the perceived disruption from AI in the research business? - Management indicated it is too early to determine the demographic for AI Access, but it is expected to attract a younger audience [28][29] Question: What improvements are seen in the sales pipeline for Q4? - There has been a noted improvement in conversion rates, particularly with the emerging tech team, which has seen a significant drop in time to close deals [30][31] Question: Are there specific industries where new client acquisition is more successful? - The company is seeing opportunities in the U.S. federal government and international markets, particularly in financial services and manufacturing [39][40]

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 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]