Forrester Research Reports Significant Q4 & Full-Year Losses, Weak 2026 Guidance Amidst Declining Revenue

summarizeSummary

Forrester Research announced disappointing Q4 and full-year 2025 financial results, including substantial GAAP losses due to goodwill impairment and a 6% decline in contract value, alongside weak 2026 guidance projecting further revenue contraction and lower adjusted earnings.

check_boxKey Events

• Significant GAAP Losses

  Reported Q4 2025 GAAP net loss of $33.9 million ($1.78/share) and full-year GAAP net loss of $119.4 million ($6.28/share), largely due to $110.7 million in goodwill impairment charges.

• Revenue and Contract Value Decline

  Total revenues decreased to $101.1 million in Q4 2025 and $396.9 million for the full year 2025. Contract value (CV) was down 6% to $292.4 million.

• Weak 2026 Guidance

  Projected full-year 2026 revenues of $345.0 million to $360.0 million (a 9-13% decline) and adjusted diluted EPS of $0.72 to $0.82, significantly below 2025 adjusted EPS of $1.16.

• Operational Challenges

  Client count decreased, and wallet retention declined, despite an increase in client retention, indicating broader operational headwinds.

auto_awesomeAnalysis

Forrester Research reported substantial GAAP net losses for both the fourth quarter and full-year 2025, primarily driven by significant goodwill impairment charges totaling $110.7 million for the year. Adjusted earnings also saw a notable decline. The company's contract value decreased by 6%, and the number of clients fell. Furthermore, the 2026 financial guidance projects a continued revenue decline of 9-13% and a significant drop in adjusted diluted earnings per share, indicating ongoing operational challenges. This weak performance and outlook follow a recently announced restructuring, underscoring the company's efforts to address its financial headwinds while trading near its 52-week low.