Core Insights - Gartner and Forrester's recent Q4 2025 results indicate a significant slowdown in B2B marketing and IT spending, reflecting broader market challenges [1][7]. Financial Performance - Gartner reported Q4 revenue of $1.8 billion, a 2.2% year-over-year increase, with full-year revenue at $6.5 billion, up 4% but showing a deceleration from a 9.6% annualized growth over the past five years [4]. - Forrester's Q4 revenue was $101.1 million, down 6% year-over-year, with full-year revenue at $396.9 million, an 8% decline from $432.5 million in 2024 [4]. - Gartner's adjusted EPS fell 27.8% year-over-year to $3.94, while Forrester's market cap dropped to approximately $105 million, down from around $300 million a year ago [3][4]. Market Trends - Enterprise buying cycles have extended, with increased scrutiny and elevated deal approval authority leading to slower decision-making processes [8]. - Consulting services are experiencing significant declines, with Gartner's consulting revenue down 12.8% and Forrester's down 16% in Q4 [10]. - AI is both a threat and an opportunity, with Gartner producing over 6,000 AI-related research documents and Forrester generating over $5 million in bookings from its AI Access offering [12][14]. Event Segment Performance - Gartner's Conferences segment showed resilience, with a 13.9% year-over-year increase in revenue, while Forrester's events business declined by 29% [15]. Government Spending Impact - Both companies noted headwinds from U.S. federal government spending, with Gartner's contract value growth at 4% excluding federal contracts, indicating a structural shift in this market [16]. Valuation Metrics - Gartner's market valuation has dropped to approximately 1.8 times revenue, while Forrester's is at 0.25 times revenue, reflecting historically low multiples for recurring-revenue businesses [18]. Strategic Shifts - The B2B landscape is undergoing a reset, with budgets being reallocated from traditional consulting and advisory services to AI-driven tools and platforms that offer measurable outcomes [19].

CAMBRIDGE, Mass.--(BUSINESS WIRE)--Forrester (Nasdaq: FORR) today announced that rock band The Fray will be this year's headline performer at Forrester's B2B Summit North America, taking place in Phoenix, April 26–29, 2026. This year's B2B Summit North America theme, "GTM Singularity,†will enable B2B marketing, sales, customer, and product leaders — through Forrester's research, frameworks, and guidance — to adapt to evolving buyer behaviors and modernize their go-to-market (GTM) approaches in. ...

Core Insights - Forrester Research reported a revenue of $101.06 million for the quarter ended December 2025, reflecting a year-over-year decline of 6.5% and an EPS of $0.17 compared to $0.36 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $103.26 million, resulting in a surprise of -2.13%, while the EPS also missed the consensus estimate of $0.21 by -20.3% [1] Revenue Breakdown - Revenue from Events was $2.66 million, below the estimated $2.98 million, marking a -1% change year-over-year [4] - Revenue from Consulting was $21.79 million, compared to the estimated $22.2 million, representing a -16% change year-over-year [4] - Revenue from Research was $76.62 million, falling short of the $78.04 million estimate, indicating a -3.5% change year-over-year [4] Stock Performance - Forrester Research's shares have returned -21.1% over the past month, contrasting with the Zacks S&P 500 composite's -0.3% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

分组1 - Forrester Research reported quarterly earnings of $0.17 per share, missing the Zacks Consensus Estimate of $0.21 per share, and down from $0.36 per share a year ago, representing an earnings surprise of -20.30% [1] - The company posted revenues of $101.06 million for the quarter, missing the Zacks Consensus Estimate by 2.13%, and down from $108.04 million year-over-year, having surpassed consensus revenue estimates only once in the last four quarters [2] - Forrester Research shares have declined approximately 19.2% since the beginning of the year, contrasting with the S&P 500's gain of 1.4% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.15 on revenues of $89.88 million, and for the current fiscal year, it is $1.33 on revenues of $394.74 million [7] - The Zacks Industry Rank indicates that the Computer - Services sector is in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

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 Performance - Forrester's total revenues for Q4 2025 were $101.1 million, a decrease of 6.5% from $108.0 million in Q4 2024[4] - The net loss for Q4 2025 was $33.9 million, or $1.78 per diluted share, compared to a net income of $0.4 million, or $0.02 per diluted share, in Q4 2024[5] - For the full year 2025, total revenues were $396.9 million, down 8.2% from $432.5 million in 2024[7] - The net loss for 2025 was $119.4 million, or $6.28 per diluted share, compared to a net loss of $5.7 million, or $0.30 per diluted share, in 2024[7] - Adjusted net income for Q4 2025 was $3.2 million, or $0.17 per diluted share, down from $6.8 million, or $0.36 per diluted share, in Q4 2024[6] - Adjusted net income for the year ended December 31, 2025, was $22,244 thousand, down from $28,103 thousand in 2024, reflecting a decrease of approximately 21%[19] Revenue Guidance and Projections - Forrester's 2026 revenue guidance is projected to be between $345.0 million and $360.0 million, representing a decline of 9% to 13% compared to 2025[13] - Adjusted diluted earnings per share for 2026 are expected to be between $0.72 and $0.82[13] - Forrester's adjusted effective tax rate is expected to remain at 29% for 2026[13] Operational Changes and Strategies - The company plans to implement a restructuring to improve cost efficiency and focus on contract value growth[3] - The company aims to enhance customer retention and accelerate AI integration across its product portfolio[4] Client and Market Metrics - Cash, cash equivalents, and marketable investments increased to $127,656 thousand as of December 31, 2025, up from $104,669 thousand in 2024, representing a growth of about 22%[21] - The total contract value decreased to $292,400 thousand as of December 31, 2025, down from $311,900 thousand in 2024, indicating a decline of approximately 6%[22] - Client retention improved to 77% in 2025, up from 73% in 2024, while wallet retention decreased slightly to 87% from 89%[22] - The number of clients decreased to 1,797 in 2025, down from 1,942 in 2024, reflecting a reduction of about 7%[22] Cash Flow and Headcount - Net cash provided by operating activities was $21,081 thousand for the year ended December 31, 2025, a significant recovery from a cash outflow of $3,861 thousand in 2024[21] - Total headcount decreased to 1,474 in 2025 from 1,571 in 2024, indicating a reduction of approximately 6%[22] - The sales force size decreased to 553 in 2025, down from 580 in 2024, reflecting a contraction of about 5%[22] - The company repurchased $2,540 thousand of common stock in 2025, a decrease from $15,920 thousand in 2024, indicating a reduction in stock buyback activity[21]

Core Viewpoint - Forrester Research, Inc. will hold its fourth-quarter and full-year earnings conference call on February 12, 2026, at 4:30 p.m. ET, which will be accessible via Forrester.com [1] Group 1 - The earnings conference call is scheduled for February 12, 2026 [1] - Investors are advised to log on at least 15 minutes prior to the broadcast [1] - Participants have the option to pre-register for the call [1]