Forrester Research Reports $85.5M Revenue in Q1 2026, Net Loss of $21.8M

Forrester Research, Inc. reported a total revenue of $85.5 million for the first quarter of 2026, a decrease of 5% from $89.9 million in the same period last year. The decline was primarily driven by a 2% drop in research revenues, which totaled $66.9 million, and a 13% decrease in consulting revenues, which amounted to $18.6 million. The company also recorded a net loss of $21.8 million, or $1.14 per share, compared to a net loss of $87.3 million, or $4.62 per share, in the prior year. The significant reduction in net loss was attributed to a goodwill impairment charge of $10.8 million in the current quarter, compared to a much larger impairment of $83.9 million in the same quarter of 2025.

In terms of operational metrics, Forrester's contract value decreased by 3% year-over-year to $285.3 million, while client retention improved by 5 percentage points to 78%. Wallet retention also increased by 3 percentage points to 89%. The number of clients decreased by 62 to 1,760. The company attributed the increase in client retention to ongoing initiatives and the launch of its AI Access product in the third quarter of 2025.

Forrester's total operating expenses for the quarter were $104.1 million, down significantly from $177.5 million in the previous year, largely due to the absence of the prior year's goodwill impairment charge. The company also implemented a workforce reduction of approximately 8% in February 2026, incurring $1.2 million in severance costs during the quarter. The restructuring is part of a broader strategy to align costs with revenue expectations.

On the balance sheet, Forrester reported total assets of $409.1 million as of March 31, 2026, up from $404.0 million at the end of 2025. Cash and cash equivalents increased to $73.9 million, compared to $63.3 million at the end of the previous year. The company also amended its credit facility to extend the maturity date to March 2029 and reduce the size of the revolving credit facility from $150 million to $50 million, which is expected to lower ongoing costs.

Looking ahead, Forrester anticipates continued challenges in its consulting segment, projecting a year-over-year decline in consulting revenues in the low 20% range due to the discontinuation of strategy consulting engagements. The company remains focused on enhancing its research offerings and improving client retention as it navigates a competitive landscape.