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]