Forrester Research (NASDAQ:FORR) Issues Earnings Results, Misses Estimates By $0.16 EPS

Key Points

• Forrester Research reported quarterly EPS of -$0.04, missing analyst estimates by $0.16, though revenue came in above expectations at $85.45 million.
• On the earnings call, management said retention and other key metrics improved and raised the low end of full-year revenue guidance to $350 million–$360 million, citing slower declines in client value.
• The company highlighted momentum in Forrester AI and strong liquidity, with usage up about 55% year over year and roughly $145 million in cash alongside solid free cash flow.

Forrester Research (NASDAQ:FORR - Get Free Report) posted its quarterly earnings data on Wednesday. The technology company reported ($0.04) earnings per share for the quarter, missing the consensus estimate of $0.12 by ($0.16), FiscalAI reports. The firm had revenue of $85.45 million for the quarter, compared to analysts' expectations of $83.28 million. Forrester Research had a positive return on equity of 6.18% and a negative net margin of 13.74%. Forrester Research updated its FY 2026 guidance to 0.720-0.820 EPS.

Here are the key takeaways from Forrester Research's conference call:

• Retention and key metrics improved (wallet retention 89%, client retention 78%, multi‑year deals 72%) and management raised the low end of full‑year revenue guidance to a range of $350M–$360M as CV declines slowed to 3% in Q1.
• Forrester AI gained momentum with a model upgrade (conversational, transparent reasoning, 197 languages), Microsoft Teams and Copilot integrations, and usage up ~55% YoY (prompt volume +65%), driving product adoption.
• Total revenue fell 5% to $85.5M, research was down 2% and consulting down 13% (reflecting the decision to exit the strategy consulting business), while adjusted operating income swung to a loss (‑$0.9M) and EPS was ‑$0.04.
• Liquidity remained strong with ~$19M free cash flow in the quarter (≈$25M excl. one‑time HQ CapEx), cash of ~$145M, only $35M of debt, and an extended credit facility to March 2029.
• Events and go‑to‑market execution showed early traction (B2B Summit attendees +10%, stronger sponsorship bookings), sales reorganized around six industries and CV productivity per rep rose ~6% YoY, supporting management’s view of a recovery in CV.

Forrester Research Trading Up 5.2%

NASDAQ FORR traded up $0.34 on Friday, reaching $6.87. The stock had a trading volume of 41,099 shares, compared to its average volume of 123,106. Forrester Research has a 1 year low of $4.88 and a 1 year high of $11.57. The business has a 50 day moving average price of $5.94 and a 200 day moving average price of $6.94. The company has a market capitalization of $131.77 million, a price-to-earnings ratio of -2.43, a P/E/G ratio of 1.18 and a beta of 0.99.

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on FORR. Zacks Research raised Forrester Research from a "strong sell" rating to a "hold" rating in a research report on Monday, January 12th. Wall Street Zen downgraded Forrester Research from a "buy" rating to a "hold" rating in a report on Sunday, February 15th. Finally, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Forrester Research in a research report on Friday, March 27th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Reduce".

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. Jane Street Group LLC lifted its stake in shares of Forrester Research by 7.8% in the 2nd quarter. Jane Street Group LLC now owns 20,741 shares of the technology company's stock valued at $205,000 after purchasing an additional 1,494 shares during the last quarter. Engineers Gate Manager LP increased its stake in shares of Forrester Research by 9.7% in the second quarter. Engineers Gate Manager LP now owns 19,626 shares of the technology company's stock worth $194,000 after purchasing an additional 1,728 shares during the period. Federated Hermes Inc. increased its position in Forrester Research by 1.0% in the 2nd quarter. Federated Hermes Inc. now owns 252,810 shares of the technology company's stock worth $2,503,000 after buying an additional 2,446 shares during the period. Squarepoint Ops LLC raised its stake in Forrester Research by 9.7% during the 4th quarter. Squarepoint Ops LLC now owns 31,145 shares of the technology company's stock valued at $253,000 after purchasing an additional 2,752 shares during the last quarter. Finally, State Street Corp lifted its stake in shares of Forrester Research by 1.5% in the fourth quarter. State Street Corp now owns 255,745 shares of the technology company's stock valued at $2,077,000 after buying an additional 3,778 shares during the period. Institutional investors and hedge funds own 55.20% of the company's stock.

About Forrester Research

Forrester Research, Inc is a leading global research and advisory firm that provides insights and guidance to business and technology leaders. Founded in 1983 and headquartered in Cambridge, Massachusetts, the company offers a wide range of services designed to help clients understand market dynamics, evaluate technology investments and develop customer-centric strategies. Forrester's core offerings include syndicated research reports, bespoke advisory services, consulting engagements and data-driven analytics.

Through its extensive research practice, Forrester produces in-depth analyses of emerging technologies, industry trends and best practices across sectors such as information technology, marketing, customer experience and digital business.

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