Forrester Research Reports 8% Revenue Decline in Q3 2025, Net Loss of $2.1 Million

Forrester Research, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenues of $94.3 million, down 8% from $102.5 million in the same period last year. The company's research segment, which constitutes a significant portion of its revenue, generated $72.7 million, a decrease of 6% year-over-year. Consulting revenues also fell by 8% to $21.5 million, while event revenues plummeted 92% to $0.2 million, primarily due to the timing of events. For the nine months ended September 30, 2025, total revenues were $295.8 million, down 9% from $324.4 million in the prior year.

The company's net loss for the third quarter was $2.1 million, compared to a loss of $5.8 million in the same quarter of 2024. For the nine-month period, the net loss widened significantly to $85.5 million, largely due to an $83.9 million goodwill impairment charge recorded in the first quarter of 2025. This impairment was attributed to a decline in the company's stock price and overall market capitalization, alongside adverse macroeconomic conditions. The company’s operating expenses for the third quarter decreased to $89.8 million from $103.3 million a year earlier, reflecting cost-cutting measures and a reduction in headcount.

In terms of strategic developments, Forrester completed the divestiture of its FeedbackNow product line in August 2024, which contributed to the revenue decline in both the research and consulting segments. The company has also been focusing on restructuring efforts, including a workforce reduction of approximately 6% in January 2025 to align its cost structure with revenue expectations. As of September 30, 2025, Forrester had 1,774 clients, a decrease of 11% from the previous year, indicating challenges in client retention and acquisition.

Operationally, Forrester's cash and cash equivalents increased to $65.1 million as of September 30, 2025, up from $56.1 million at the end of 2024. The company reported cash provided by operating activities of $24.3 million for the nine months ended September 30, 2025, a significant improvement from a cash outflow of $2.0 million in the prior year. Looking ahead, Forrester anticipates continued challenges in revenue growth and client retention, particularly in light of the ongoing economic uncertainties and competitive pressures in the market. The company remains focused on enhancing its product offerings and improving operational efficiencies to drive future growth.