Forrester Research Reports Significant Q4 & Full-Year Losses, Weak 2026 Guidance Amidst Declining Revenue
Summary
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.
Key Events
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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.
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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.
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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.
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Operational Challenges
Client count decreased, and wallet retention declined, despite an increase in client retention, indicating broader operational headwinds.
Analysis
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.
At the time of this filing, FORR was trading at $6.21 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $118M. The 52-week trading range was $6.20 to $13.64. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.