Forrester Research Reports 10% Revenue Decline in Q2 2026

Forrester Research, Inc. reported a decline in financial performance for the second quarter of 2026, with total revenues of $100.2 million, down 10% from $111.7 million in the same period last year. The company's research revenues decreased by 8% to $71.7 million, while consulting revenues fell by 15% to $20.0 million. Events revenues also saw a decline of 17%, totaling $8.5 million. For the first half of 2026, total revenues were $185.7 million, an 8% decrease compared to $201.5 million in the prior year. The company recorded a net income of $15.3 million for the quarter, a significant increase from $3.9 million in the same quarter of 2025, largely due to a tax benefit of $12.3 million.

In terms of operational changes, Forrester has undergone a restructuring process, including a workforce reduction of approximately 8% in February 2026, which resulted in $2.0 million in severance costs during the second quarter. The company also reported a goodwill impairment charge of $10.8 million in the first quarter of 2026, but no additional impairments were recorded in the second quarter. The total assets of Forrester increased to $416.5 million as of June 30, 2026, compared to $404.0 million at the end of 2025, driven by an increase in marketable investments.

Forrester's customer metrics showed a slight decline, with the number of clients decreasing by 2% to 1,770 as of June 30, 2026. However, client retention improved to 77%, up from 74% in the previous year, and wallet retention increased to 89%. The company continues to focus on its contract value (CV) products, which represent a significant portion of its revenue. The CV decreased by 3% year-over-year, reflecting challenges in new client acquisition and overall market conditions.

Looking ahead, Forrester anticipates continued challenges in its consulting segment, particularly following the decision to discontinue strategy consulting engagements. The company expects consulting revenues to decline in the low 20% range for the year. Despite these challenges, Forrester remains committed to its strategic initiatives, including the launch of new products and geographic expansion, while maintaining a focus on improving operational efficiency. The company has also amended its credit facility to extend its maturity and reduce costs, ensuring compliance with financial covenants as it navigates the current market landscape.