Forrester Research, Inc. reported a significant decline in its financial performance for the first quarter of 2025, with total revenues of $89.9 million, down 10% from $100.1 million in the same period last year. The company's research revenues fell by 11% to $68.4 million, while consulting revenues decreased by 7% to $21.4 million. The decline in revenue was attributed to a decrease in contract value and the divestiture of the FeedbackNow product line in 2024. The company also recorded a net loss of $87.3 million, compared to a loss of $6.7 million in the prior year, largely due to an $83.9 million goodwill impairment charge.
In terms of operational metrics, Forrester's contract value decreased by 7% year-over-year to $290.9 million, with a client retention rate of 73% and wallet retention at 86%. The number of clients dropped by 300 to 1,822. The company’s cash and cash equivalents increased to $75.6 million from $56.1 million at the end of 2024, while marketable investments rose to $58.7 million from $48.6 million. The company’s total assets decreased to $439.8 million from $503.9 million, reflecting the impact of the goodwill impairment.
Strategically, Forrester has undergone significant organizational changes, including a workforce reduction of approximately 6% in January 2025 to align its cost structure with revenue expectations. The company also recorded restructuring costs of $1.5 million in the first quarter of 2025. Additionally, Forrester has been focusing on enhancing its product offerings, particularly in its Forrester Decisions products, which have shown some revenue growth despite the overall decline in research subscription products.
Looking ahead, Forrester anticipates challenges due to macroeconomic conditions and changes in trade policies that may affect technology spending. The company has indicated that it will continue to monitor its goodwill and may face additional impairment charges in the future. Despite the current challenges, Forrester remains committed to its strategic initiatives and expects to leverage its cash reserves and marketable investments to navigate the upcoming fiscal periods.
About FORRESTER RESEARCH, INC.
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