Forrester Research (NASDAQ:FORR) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Forrester Research (NASDAQ:FORR) issued its quarterly earnings data on Thursday. The technology company reported $0.24 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.20 by $0.04, FiscalAI reports. The firm had revenue of $86.11 million during the quarter, compared to analysts’ expectations of $81.78 million. Forrester Research had a negative net margin of 11.17% and a positive return on equity of 6.19%.

Here are the key takeaways from Forrester Research’s conference call:

• Q3 remained challenging operationally: revenue fell 9% year over year to $86.1 million, consulting revenue declined 31%, and adjusted EPS dropped 35% to $0.24. Contract value decreased 3.5%, although this was an improvement from the 7% decline a year earlier.
• Forrester issued a wider year-end contract value outlook ranging from a 2% decline to 2% growth, citing delayed U.S. federal deals, complex enterprise sales cycles, and the significant contribution of fourth-quarter bookings. Management said these factors create uncertainty but maintained confidence in achieving sustained growth in 2027.
• Retention and AI engagement improved: wallet retention rose to 89% and client retention to 78%, while Forrester AI prompts increased 142% year over year and users grew 65%. AI Access represented approximately 4% of contract value and is expected to reach about 5% by year-end, with higher margins than traditional offerings.
• Forrester launched Team Solutions and AI Access Plus and expanded its “Where You Work” strategy to Anthropic’s Claude, creating additional upsell and distribution opportunities. The company also raised the low end of full-year adjusted EPS guidance from $0.72 to $0.77 and repurchased approximately $10 million of stock during the quarter.

Forrester Research Stock Performance

Shares of Forrester Research stock traded up $0.14 on Thursday, reaching $12.18. The stock had a trading volume of 169,032 shares, compared to its average volume of 122,250. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.06 and a current ratio of 1.06. The business’s 50-day moving average price is $11.81 and its two-hundred day moving average price is $8.57. The stock has a market cap of $231.90 million, a P/E ratio of -5.41, a price-to-earnings-growth ratio of 2.35 and a beta of 0.99. Forrester Research has a fifty-two week low of $4.88 and a fifty-two week high of $12.75.

Insider Activity

In related news, insider Ryan Darrah sold 5,000 shares of the firm’s stock in a transaction on Thursday, August 20th. The shares were sold at an average price of $11.78, for a total value of $58,900.00. Following the transaction, the insider directly owned 27,244 shares in the company, valued at approximately $320,934.32. This trade represents a 15.51% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Corporate insiders own 40.70% of the company’s stock.

Analysts Set New Price Targets

FORR has been the topic of several recent research reports. Weiss Ratings restated a “sell (d-)” rating on shares of Forrester Research in a report on Monday. Wall Street Zen upgraded Forrester Research from a “hold” rating to a “buy” rating in a research note on Saturday, August 29th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Forrester Research presently has a consensus rating of “Reduce”.

About Forrester Research

Forrester Research, Inc is a global research and advisory firm that provides business and technology leaders with insights, guidance and tools to support strategic decision-making. The company serves professionals across areas including technology management, marketing, customer experience, sales and product development.

Forrester’s offerings include syndicated research, proprietary data and analysis, consulting services, advisory support, executive peer exchanges, events and subscription-based access to its research platform.