Forrester Reports Q2 2025 Revenue Range of $400M-$410M, Raises Sales Pipeline by 15%

Forrester Research reported a Q2 2025 revenue range of $400M-$410M and maintained its EPS guidance. The company's sales pipeline rose 15%. CEO George F. Colony cited ongoing economic instability affecting clients, with CV and wallet retention decreasing by 7% and 1%, respectively, while client retention increased by an unspecified amount.

Forrester Research, Inc. (FORR) reported its Q2 2025 revenue range at $400 million to $410 million, a slight reduction from the previously projected $400 million to $415 million. The company maintained its earnings per share (EPS) guidance for the year. CEO George F. Colony cited ongoing economic instability as a significant factor affecting both enterprise and vendor clients. The company's sales pipeline increased by 15% quarter-over-quarter, indicating a positive trend in revenue growth.

Despite the challenging economic environment, Forrester Research experienced a modest improvement in its Q2 performance compared to the previous quarter. The company reported a revenue decrease of 8%, driven by mid-single-digit declines in its research and consulting businesses and ongoing challenges in its events business. However, the company's overall performance exceeded consensus expectations for revenue, margin, and EPS.

The company's consulting business posted revenues of $23.4 million, down 5% compared to the prior year. Events revenue decreased by 23% to $10.2 million. Operating income decreased by 24% to $13.7 million, or 12.2% of revenue in the current quarter. Net income and earnings per share decreased by 24% and 25%, respectively, compared to Q2 of last year, with net income at $9.8 million and earnings per share at $0.51.

Forrester Research highlighted progress in the government sector and the impact of new product releases, including the "buying networks research series" for B2B markets and the "Total experience score" for B2C personas. The company reported strong client engagement with these releases and stated that over the last four weeks, Forrester analysts had performed more than 100 total experience-focused guidance sessions with clients.

The company's generative AI tool, Izola, saw increased usage, with the number of clients using Izola increasing by 22% and prompts up by 44% quarter-over-quarter. Additionally, the company's events business has new leadership, and attendance showed growth in the quarter.

CFO Leo Christian Finn stated that despite the difficult operating environment, the company delivered revenue, operating margin, and EPS above consensus. He also noted that the company is tightening its revenue guidance based on the Q2 events performance and the lower outlook for both consulting and events revenue in the second half of the year. Finn reiterated that the company continues to expect its operating margins to be in the range of 8% to 9% for 2025 and EPS to be in the range of $1.20 to $1.35 for the full year.

In summary, Forrester Research reported a mixed bag of results for Q2 2025. While the company experienced a decline in revenue and certain business segments, it also reported growth in its sales pipeline and increased usage of its AI tool, Izola. The company's management remains optimistic about its prospects and has outlined targeted strategies to address specific challenges in the events and consulting businesses. [1]

References:
[1] https://seekingalpha.com/news/4476659-forrester-outlines-400m-410m-revenue-range-and-maintains-eps-guidance-as-sales-pipeline-rises