Forrester Research's Q2 2025: Unpacking Contradictions in Sales Strategy, Cycle Length, and Client Focus

Sales pipeline and conversion rates, sales cycle length, events and sponsorship business challenges, and client count and focus on larger clients are the key contradictions discussed in Forrester Research's latest 2025Q2 earnings call.



Earnings and Revenue Performance:
- Forrester Research reported revenue of $111.7 million for Q2 2025, a decrease of 8% year-over-year.
- This was primarily due to mid-single-digit declines in the research and consulting businesses and ongoing challenges in the events business.

Client Retention and Wallet Retention:
- Client retention rate for Q2 was 74%, up 1 point from the previous quarter, while wallet retention rate was 85%, down 1 point.
- Decreased wallet retention is attributed to lower enrichment by existing clients due to ongoing budgetary and macroeconomic factors.

Sales Pipeline and Hiring Efforts:
- The sales pipeline increased by 15% from Q1 to Q2, while the average time to hire new reps improved by 21%.
- These improvements are due to enhanced performance management, adoption of the fast sales methodology, and hiring of new talent in the marketplace.

New Research and Product Developments:
- Two new research constructs were introduced in Q2: the buying networks research series and the unified metric called the Total Experience score.
- These developments are aimed at enhancing Forrester's value proposition and positioning the company as a leader in B2B and B2C marketing research.

Events Business Challenges and Initiatives:
- Events revenue for Q2 was $10.2 million, representing a decrease of 23% compared to Q2 2024.
- Efforts to address these challenges include expanding sponsorship and attendee sales, refining offerings, and enhancing sponsorship sales strategy.