Forrester Research reported a challenging fourth quarter and full year, with revenues declining year-over-year and significant GAAP net losses driven by goodwill impairment and restructuring costs. While adjusted net income showed a profit, it was down from the prior year, and contract value also decreased, signaling ongoing business headwinds.
Adjusted net income for Q4 2025 was $3.2 million, or $0.17 per diluted share, indicating profitability on an adjusted basis.
positiveClient retention improved to 77% in 2025 from 73% in 2024.
positiveCash flow from operations turned positive in FY2025, reaching $21.1 million, a significant improvement from -$3.9 million in FY2024.
positiveLaunched Forrester AI Access, a new self-service offering.
neutralGAAP net loss for Q4 2025 was $33.9 million, or $1.78 per diluted share, compared to a net income of $0.4 million in Q4 2024.
negativeGAAP net loss for FY2025 was $119.4 million, or $6.28 per diluted share, a significant deterioration from a net loss of $5.7 million in FY2024.
negativeTotal revenues declined to $101.1 million in Q4 2025 from $108.0 million in Q4 2024, and full-year revenues decreased to $396.9 million from $432.5 million.
negativeContract value (CV) decreased by 6% to $292.4 million in 2025 from $311.9 million in 2024.
negativeGoodwill impairment charges of $26.8 million in Q4 2025 and $110.7 million for FY2025 significantly impacted GAAP results.
negativeRestructuring costs of $9.8 million in Q4 2025 and $11.7 million for FY2025 were incurred.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Research | N/A | — | — | — |
Consulting | N/A | — | — | — |
Events | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
While we saw areas of momentum in cash flow, client retention, and client count — partly fueled by the launch of Forrester AI Access, our new self-service offering — our fourth-quarter and full-year financials fell short of expectations.
As a result, we announced a restructuring this week to improve our cost efficiency, focus on CV growth, and inform the 2026 guidance.
To drive CV growth, we will continue to refine our go-to-market execution, advance measures that drive stronger customer retention, and accelerate the integration of AI across our product portfolio.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.