Forrester Research Stock Earnings Reports

Forrester reported Q1 2026 revenue of $85.5M, down 5% year-over-year, with research revenue down 2% and consulting down 13% as the company exits its strategy consulting business. Key operating metrics improved: overall retention rose to 89% (up 2 points sequentially), client retention to 78% (up 1 point sequentially), and multiyear deals comprised 72% of total contract value. Contract value (CV) decline slowed to 3% in Q1 and management expects CV to be slightly up for the year. Free cash flow was strong at ~$19M (or ~$25M excluding a one-time $5.4M HQ CapEx). Cash at quarter end was >$145M with $35M of debt; the credit facility maturity was extended to March 2029. Forrester highlighted AI as the central growth opportunity: management believes ~70% of future AI-related revenue will come from private models, has upgraded its internal model to “Forrester AI” (now conversational, transparent and available in 197 languages), and is embedding that product into clients' workflows (Microsoft Teams, Copilot, Marketplace). Product initiatives include AI Access and further embedding/optionality of offerings. Sales reorganization and training aimed at driving enterprise-wide deals are underway; early signs of pipeline and event sponsorship strength (higher bookings and attendance) supported raising the low end of revenue guidance. Full-year 2026 guidance was narrowed/increased at the low end to $350M–$360M (down 9%–12% vs. 2025), with expected operating margins of 6.0%–6.5% and EPS of $0.72–$0.82. Management reiterated focus on retention life cycle, embedding AI where clients work, building sales growth culture, and providing actionable research.