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1. Company Snapshot

1.a. Company Description

Forrester Research, Inc.operates as an independent research and advisory services company.The company operates in three segments: Research, Consulting, and Events.


The Research segment primary subscription research portfolio services include Forrester Research, SiriusDecisions Research, and Forrester Decisions, which are designed to provide business and technology leaders with a proven path to growth through customer obsession.This segment delivers content, such as future trends, predictions, and market forecasts; deep consumer and business buyer data and insights; curated best practice models and tools to run business functions; operational and performance benchmarking data; and technology and service market landscapes and vendor evaluations through online access.The Consulting segment provides consulting projecs, including conducting maturity assessments, prioritizing best practices, developing strategies, building business cases, selecting technology vendors, structuring organizations, developing content marketing strategies and collateral, and sales tools; and advisory services.


The Events segment hosts in-person and virtual events related to business-to-business marketing, sales and product leadership, customer experience, security and risk, new technology and innovation, and data strategies and insights.The company sells its products and services through direct sales force in various locations in the United States, Europe, the United Kingdom, Canada, the Asia Pacific region, and internationally.Forrester Research, Inc.


was incorporated in 1983 and is headquartered in Cambridge, Massachusetts.

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1.b. Last Insights on FORR

The recent 3-month performance of Forrester Research, Inc. was negatively impacted by weak Q4 earnings and revenue decline, with contract value (CV) down by 5% year-over-year. The company's restructuring efforts aimed at improving cost efficiency and influe were announced last month, but the impact of these measures on future performance remains uncertain. Additionally, the company's history of M&A risks and future strategy shifts pose concerns for investors.

1.c. Company Highlights

2. Forrester's Q3 Earnings: A Mixed Bag Amidst Challenging Macroeconomic Environment

Forrester reported a total revenue of $94.3 million for Q3, representing an 8% decline from the prior year. Research revenue stood at $72.7 million, down 6% compared to the third quarter of 2024. The company's EPS came in at $0.37, beating analyst estimates of $0.31. The consulting business posted revenues of $21.5 million, an 8% decline from the prior year. The company's operating margin is expected to be in the range of 7.5% to 8.5% for 2025.

Publication Date: Nov -25

📋 Highlights
  • Revenue Declines:: Total revenue fell 8% YoY to $94.3M; research revenue dropped 6% YoY to $72.7M, and consulting revenue declined 8% YoY to $21.5M.
  • AI Access Launch Impact:: Generated a multimillion-dollar sales pipeline post-launch, including a record-breaking government deal via enterprise-wide pricing for thousands of users.
  • 2025 Revenue Guidance:: Revised to $395–$405M (6–9% YoY decline), driven by consulting (-high single-digit to low double-digit) and events (-high 20%) headwinds.
  • Improved Conversion Efficiency:: Emerging tech team reduced time to close deals from 80 to 59 days; average contract value rose 5% YoY to $162K.
  • Operating Margin Guidance:: 2025 operating margin projected at 7.5–8.5%, with EPS expected at $1.15–$1.25, reflecting $2.7M interest expense and 29% tax rate.

Revenue Performance and Client Retention

Despite the challenging macroeconomic environment, Forrester saw an improvement in wallet retention, which rose 1 point to 86%, while client retention held steady at 74% compared to Q2. The company's research business, although declining, is expected to remain a mid-single-digit decline for the year. The consulting business, however, is expected to see a high single-digit to low double-digit decline.

Product Innovations and Pipeline Growth

The launch of AI Access, a self-service AI offering, has generated significant interest, with a multimillion-dollar fast-growing sales pipeline. The company secured one of its largest research deals with a large government agency, citing the AI Access product as a key differentiator. Forrester's emerging tech team has seen a significant decrease in time to close, from 80 days to 59 days, using a "social contract" to hold clients accountable.

Valuation and Outlook

With a P/E Ratio of -1.56 and a P/S Ratio of 0.33, the market appears to have priced in the challenges faced by Forrester. Analysts estimate next year's revenue growth at -1.1%. Forrester's ROE stands at -44.14%, and its ROIC is -35.2%. The company's guidance for 2025 revenue is $395 million to $405 million, representing a decline of 6% to 9% versus 2024. Despite the near-term challenges, Forrester's innovative products and improving pipeline conversion rates offer a glimmer of hope for future growth.

3. NewsRoom

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Forrester Announces Call For Nominations For Its 2026 North America B2B Awards

Nov -17

Source: businesswire.com

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Forrester Research, Inc. (FORR) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Compared to Estimates, Forrester Research (FORR) Q3 Earnings: A Look at Key Metrics

Oct -30

Source: zacks.com

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Forrester Research (FORR) Q3 Earnings Surpass Estimates

Oct -30

Source: zacks.com

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Forrester Research Reports 2025 Third-Quarter Financial Results

Oct -30

Source: businesswire.com

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Forrester and Carahsoft Partner to Enhance Research Services in the Public Sector

Oct -30

Source: globenewswire.com

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Forrester's 2026 B2B Marketing, Sales, And Product Predictions: B2B Companies Will Lose More Than $10 Billion Because Of Ungoverned Use Of Generative AI

Oct -28

Source: businesswire.com

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Forrester's 2026 B2C Marketing, CX, & Digital Business Predictions: One-Third Of Brands Will Erode Customer Trust Through Self-Service AI

Oct -28

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (10.25%)

6. Segments

Research

Expected Growth: 10.27%

The 10.27% growth is driven by increasing adoption of digital technologies, rising demand for customer experience, and growing need for data-driven insights. Additionally, advancements in AI, cloud, and IoT are fueling innovation, while expanding use cases in industries like healthcare, finance, and retail are creating new opportunities.

Consulting

Expected Growth: 10.43%

Forrester Research, Inc.'s 10.43% growth in Consulting is driven by increasing demand for digital transformation, cloud adoption, and cybersecurity services. Additionally, the company's expertise in emerging technologies such as AI, IoT, and blockchain is attracting new clients. Furthermore, Forrester's strategic acquisitions and partnerships are expanding its service offerings and geographic reach, contributing to its rapid growth.

Events

Expected Growth: 9.5%

Forrester Research, Inc.'s 9.5% growth is driven by increasing demand for market research and advisory services, expansion into new markets, and strategic acquisitions. The company's strong brand reputation, diverse client base, and ability to provide actionable insights also contribute to its growth. Additionally, the growing need for businesses to make data-driven decisions and stay ahead of the competition fuels demand for Forrester's services.

7. Detailed Products

Forrester Wave

A research report that evaluates and ranks vendors in a specific market based on their current offerings, strategy, and market presence.

Forrester Playbook

A comprehensive guide that provides a structured approach to solving a specific business problem or achieving a specific goal.

Forrester Analytics

A data and analytics platform that provides insights and benchmarks to help businesses make data-driven decisions.

Forrester Consulting

A customized consulting service that provides tailored advice and guidance to help businesses solve specific business problems.

Forrester Events

A series of conferences, workshops, and webinars that bring together industry experts and practitioners to share knowledge and best practices.

Forrester SiriusDecisions

A research and advisory service that provides insights and best practices for B2B marketing, sales, and product professionals.

8. Forrester Research, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Forrester Research, Inc. operates in a niche market, providing research and advisory services to businesses. The threat of substitutes is moderate, as there are limited alternatives to Forrester's services.

Bargaining Power Of Customers

Forrester Research, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's services are highly specialized, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

Forrester Research, Inc. is not heavily dependent on suppliers, as its primary input is the expertise of its analysts. The company has a strong brand and can attract top talent, reducing the bargaining power of suppliers.

Threat Of New Entrants

The research and advisory services industry has high barriers to entry, including the need for specialized expertise and a strong brand. New entrants would face significant challenges in competing with established players like Forrester Research, Inc.

Intensity Of Rivalry

The research and advisory services industry is highly competitive, with several established players competing for market share. Forrester Research, Inc. faces intense competition from rivals such as Gartner and IDC.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 16.99%
Debt Cost 7.26%
Equity Weight 83.01%
Equity Cost 8.65%
WACC 8.42%
Leverage 20.47%

11. Quality Control: Forrester Research, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Huron Consulting Group

A-Score: 5.7/10

Value: 3.9

Growth: 7.7

Quality: 7.4

Yield: 0.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

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CRAI

A-Score: 5.0/10

Value: 3.0

Growth: 6.8

Quality: 5.4

Yield: 2.0

Momentum: 6.0

Volatility: 7.0

1-Year Total Return ->

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Resources Connection

A-Score: 4.5/10

Value: 8.5

Growth: 0.9

Quality: 3.8

Yield: 9.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Franklin Covey

A-Score: 4.1/10

Value: 6.3

Growth: 6.9

Quality: 6.9

Yield: 0.0

Momentum: 0.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Fuel Tech

A-Score: 3.8/10

Value: 5.6

Growth: 2.4

Quality: 3.5

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Forrester Research

A-Score: 3.3/10

Value: 8.9

Growth: 1.8

Quality: 4.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.63$

Current Price

6.63$

Potential

-0.00%

Expected Cash-Flows