Forrester Research (FORR) Financials

Forrester Research (NASDAQ: FORR) showed a mixed but improving financial picture in Q1 2026, with strong cash generation offset by another quarterly net loss and elevated operating charges. Compared with the same period last year, revenue declined, but the company remains well-capitalized and has no short-term debt.

• Q1 2026 operating cash flow was strong at $25.6 million, a big improvement from $1.2 million in Q3 2025 and $3.2 million in Q4 2025.
• The company ended Q1 2026 with a solid liquidity position, including $73.9 million in cash and equivalents and $71.6 million in short-term investments.
• Forrester had no short-term debt and only $35 million of long-term debt, which looks manageable relative to its cash and investments.
• Quarterly cash and investments totaled about $145.5 million, providing a substantial cushion against volatility.
• Q1 2026 saw positive working capital contribution from operating assets and liabilities, helping operating cash flow despite the net loss.
• Revenue in Q1 2026 was $85.5 million, down from $100.8 million in Q4 2025 and $94.3 million in Q3 2025, but still above Q1 2025’s $89.9 million.
• Gross margin remained healthy: gross profit was $46.8 million on revenue of $85.5 million, though operating expenses were still too high to reach profitability.
• Shares outstanding were relatively stable near 19 million, so dilution is not the main issue here.
• The company’s balance sheet still carries significant goodwill and intangible assets, which means future write-down risk cannot be ignored.
• Q1 2026 posted a net loss of $21.8 million, or $1.14 per share, after a much larger loss of $87.3 million in Q1 2025.
• Operating income was a loss of $18.6 million, reflecting that expenses remained well above gross profit.
• Q1 2026 included $10.8 million of impairment charges and $2.1 million of restructuring charges, suggesting ongoing pressure from business restructuring or asset value adjustments.
• Current liabilities of $237.9 million exceeded current assets of $218.4 million, indicating a strained near-term working capital position.

Looking at the broader trend, Forrester’s results have been volatile over the last four quarters. The company swung from profitability in some quarters of 2024 and Q2 2025 to losses again in late 2025 and early 2026. The encouraging part is that cash flow has held up better than earnings, which gives management more flexibility. The main concern for investors is whether the company can restore consistent revenue growth and keep operating expenses under control without relying on one-time adjustments.

Bottom line: FORR’s balance sheet and cash generation provide some support, but the business still faces uneven revenue trends, recurring restructuring/impairment charges, and a lack of sustained profitability.