Forrester Research 2025 Q2 Earnings Record Low Net Income Amid Revenue Decline

Forrester Research reported mixed 2025 Q2 results with both revenue and earnings falling short of prior-year figures. The company highlighted that revenue and EPS exceeded consensus estimates despite ongoing market uncertainty. Forrester maintained its full-year 2025 revenue guidance, signaling confidence in its long-term strategic direction.

Forrester Research reported a total revenue of $111.66 million for 2025 Q2, representing an 8.3% decline from the $121.83 million recorded in the same period of 2024. The research segment accounted for the largest share of revenue, generating $77.93 million, followed by consulting services, which contributed $23.49 million. Events revenue came in at $10.24 million. The results reflect a broad slowdown across all business lines.

Earnings per share (EPS) dropped 36.4% to $0.21 in Q2 2025, compared to $0.33 in Q2 2024. The company’s net income also fell significantly, decreasing to $3.91 million, a 37.8% drop from the $6.29 million earned in the prior-year quarter. These declines highlight the challenging operating environment, as well as the impact of higher expenses and lower revenue. The performance of both key metrics was notably weak and reflects a difficult operating environment.

The stock price of Forrester Research edged up 1.26% during the latest trading day, but recorded no movement during the most recent full trading week. Month-to-date, the stock has declined by 3.88%. Post-earnings trading strategies have not fared well, with a specific strategy of buying the stock when it beats revenue and holding for 30 days resulting in a -67.86% return, far below the 86.40% benchmark. The strategy’s Sharpe ratio of -0.54 indicates high risk, and while the maximum drawdown was recorded at 0%, it suggests that the strategy did not experience significant losses during the backtest period.

A post-earnings price action review revealed that a strategy of buying Forrester stock when it beats revenue and holding for 30 days performed poorly, with a return of -67.86% compared to a benchmark return of 86.40%. The strategy's Sharpe ratio of -0.54 underscored its high risk, and although the maximum drawdown was 0%, it indicated the strategy did not suffer substantial losses during the testing period. The poor performance highlights investor skepticism and a lack of confidence in the stock's short-term direction following the earnings report.

CEO and Chairman George F. Colony acknowledged ongoing market uncertainty impacting contract value but noted that revenue, operating margin, and EPS exceeded consensus estimates. He emphasized Forrester’s commitment to delivering research insights to support business leaders and its continuous development of the generative AI tool, Izola. Colony expressed confidence in Forrester’s leadership in AI research and its ability to help clients win, serve, and retain customers in a competitive market.

Forrester Research maintained its full-year 2025 revenue guidance of $400.0 million to $410.0 million, which reflects a projected decline of between 7.5% and 5.2% compared to the prior year. On an adjusted basis, the company expects diluted earnings per share in the range of $1.20 to $1.35. In contrast, GAAP diluted loss per share is anticipated to fall between $4.16 and $4.01. The company projects an operating margin of approximately -18.4% to -17.4% on a GAAP basis and between 8.0% and 9.0% on an adjusted basis, highlighting the company’s continued efforts to manage costs while maintaining its long-term strategic investments.

In recent news, Forrester announced the Asia-Pacific recipients of its 2025 Technology Awards, including FWD Group, YCH Group, and The Hong Kong Jockey Club, which were recognized for aligning their technology and business strategies to accelerate growth. Additionally, AIA Group was named the winner of the 2025 Customer-Obsessed Enterprise Award for the Asia-Pacific region, set to be honored at the CX Summit APAC. The company also unveiled the full conference agenda for its Security & Risk Summit 2025, to be held in November 2025. These developments underscore Forrester’s ongoing role in recognizing innovation and best practices across various industries.