Forrester Research 2025 Q2 Earnings Revenue and Net Income Drop Sharply

Forrester Research reported mixed results in Q2 2025, with both revenue and net income significantly below the prior year. While the company exceeded consensus estimates on several metrics, the broader market uncertainty weighed on performance. The company maintained its full-year guidance, though it expects a revenue decline compared to 2024.

Revenue
Forrester Research recorded Q2 2025 revenue of $111.66 million, representing an 8.3% decline from $121.83 million in the same period in 2024. The research segment remained the largest contributor, bringing in $77.93 million, followed by consulting at $23.49 million and events at $10.24 million. The performance across all segments reflected the challenging macroeconomic environment and evolving client priorities.

Earnings/Net Income
Earnings per share (EPS) for the quarter fell 36.4% to $0.21, compared to $0.33 in Q2 2024. Similarly, net income dropped 37.8% to $3.91 million from $6.29 million in the prior-year period. The sharp decline in profitability highlights the financial strain caused by market volatility and reduced contract value.

Price Action
The stock of Forrester Research gained 1.26% on the most recent trading day, but the weekly performance was flat. Over the past month, shares fell 3.88%, reflecting ongoing investor caution.

Post-Earnings Price Action Review
A strategy of buying FORR after it exceeded revenue expectations and selling after 30 days yielded a negative return of -67.86%, underperforming the benchmark return of 86.40%. The strategy's compound annual growth rate (CAGR) was -20.43%, with no drawdown and a Sharpe ratio of -0.54, indicating a high-risk approach with limited upside potential.

CEO Commentary
CEO and Chairman George F. Colony acknowledged the impact of market uncertainty on contract value but emphasized that the company delivered results above consensus for revenue, operating margin, and EPS. He noted continued investment in AI tool Izola and research insights, positioning Forrester as a leading AI research firm.

Guidance
Forrester expects full-year 2025 revenue to range between $400.0 million and $410.0 million, representing a decline from the previous year. The company projects a GAAP diluted loss per share of $4.16 to $4.01, while adjusted diluted earnings per share are expected to range from $1.20 to $1.35, excluding goodwill impairment and other adjustments.

Additional News
In the three weeks following its earnings report, Forrester highlighted several non-earnings-related developments. The company announced the APAC recipients of its 2025 Technology Awards, including FWD Group, YCH Group, and The Hong Kong Jockey Club, recognized for aligning technology and business strategies to drive growth. AIA Group was honored as the 2025 Customer-Obsessed Enterprise Award winner in the APAC region. Additionally, Forrester released the full agenda for its 2025 Security & Risk Summit, focusing on equipping leaders with tools to manage risk and lead through uncertainty.