Forrester's profitability remains under pressure as evidenced by a 2026Q1 operating margin of -6.7% and a persistent year-over-year revenue decline of 4.9%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 392.47M | 396.89M | 432.47M | 480.78M | 537.79M | 494.31M | 448.98M | 461.7M | 357.57M | 337.67M | 326.1M | 313.73M | 312.06M | 297.65M | 292.93M | 283.62M | 250.73M | 233.35M | 240.88M | 212.06M | 181.47M | 153.23M | 138.48M | 126M | 96.94M | 159.12M | 157.15M | 87.3M | 61.6M | 40.4M | 25M |
| Revenue Growth % | -7.06% | -8.23% | -10.05% | -10.6% | 8.79% | 10.1% | -2.75% | 29.12% | 5.89% | 3.55% | 3.94% | 0.53% | 4.84% | 1.61% | 3.28% | 13.12% | 7.45% | -3.12% | 13.59% | 16.85% | 18.43% | 10.65% | 9.9% | 29.98% | -39.08% | 1.26% | 80.01% | 41.72% | 52.48% | 61.6% | 71.23% |
| Cost of Goods Sold | 180.46M | 185.49M | 9.65M | 204.48M | 223.77M | 201.81M | 180.9M | 196.73M | 146.5M | 136.87M | 128.18M | 126.26M | 126.2M | 117.06M | 111.23M | 103.57M | 94.11M | 84.27M | 87.8M | 81.61M | 73.27M | 62.45M | 54.69M | 50.05M | 34.03M | 49.11M | 45.47M | 27.7M | 22M | 13.7M | 9M |
| COGS % of Revenue | - | 46.74% | 2.23% | 42.53% | 41.61% | 40.83% | 40.29% | 42.61% | 40.97% | 40.53% | 39.31% | 40.25% | 40.44% | 39.33% | 37.97% | 36.52% | 37.53% | 36.11% | 36.45% | 38.48% | 40.37% | 40.76% | 39.49% | 39.72% | 35.1% | 30.87% | 28.93% | 31.73% | 35.71% | 33.91% | 36% |
| Gross Profit | 212M | 211.4M | 422.82M | 276.3M | 314.01M | 292.5M | 268.08M | 264.97M | 211.07M | 200.8M | 197.92M | 187.47M | 185.86M | 180.59M | 181.7M | 180.04M | 156.62M | 149.09M | 153.07M | 130.45M | 108.2M | 90.78M | 83.79M | 75.95M | 62.91M | 110.01M | 111.68M | 59.6M | 39.6M | 26.7M | 16M |
| Gross Margin % | 54.02% | 53.26% | 97.77% | 57.47% | 58.39% | 59.17% | 59.71% | 57.39% | 59.03% | 59.47% | 60.69% | 59.75% | 59.56% | 60.67% | 62.03% | 63.48% | 62.47% | 63.89% | 63.55% | 61.52% | 59.63% | 59.24% | 60.51% | 60.28% | 64.9% | 69.13% | 71.07% | 68.27% | 64.29% | 66.09% | 64% |
| Gross Profit Growth % | - | -50% | 53.03% | -12.01% | 7.36% | 9.11% | 1.18% | 25.54% | 5.12% | 1.46% | 5.58% | 0.86% | 2.92% | -0.61% | 0.92% | 14.96% | 5.05% | -2.6% | 17.34% | 20.56% | 19.2% | 8.34% | 10.32% | 20.73% | -42.81% | -1.5% | 87.38% | 50.51% | 48.31% | 66.88% | 75.82% |
| Operating Expenses | 213.13M | 209.45M | 422.08M | 269.53M | 281.36M | 253.86M | 251.91M | 266.05M | 184.86M | 173.25M | 166.12M | 164.21M | 165.83M | 156.85M | 149.62M | 142.67M | 125.87M | 111.22M | 115.11M | 107.8M | 88.16M | 76.12M | 73.38M | 71.78M | 51.88M | 86.28M | 84.53M | 45M | 30.4M | 19.9M | 12M |
| OpEx % of Revenue | - | 52.77% | 97.6% | 56.06% | 52.32% | 51.36% | 56.11% | 57.62% | 51.7% | 51.31% | 50.94% | 52.34% | 53.14% | 52.7% | 51.08% | 50.3% | 50.2% | 47.66% | 47.79% | 50.83% | 48.58% | 49.68% | 52.99% | 56.97% | 53.52% | 54.22% | 53.79% | 51.55% | 49.35% | 49.26% | 48% |
| Selling, General & Admin | 208.76M | 209.45M | 218.44M | 235.85M | 249.59M | 229M | 216.57M | 225.91M | 175.74M | 165.82M | 157.48M | 155.12M | 154.34M | 145.35M | 138.26M | 134.75M | 118.62M | 104.56M | 109.67M | 102.58M | 82.48M | 69.06M | 63.23M | 55.69M | 43.48M | 75.19M | 76.59M | 41M | 27.6M | 18.7M | 11.5M |
| SG&A % of Revenue | - | 52.77% | 50.51% | 49.06% | 46.41% | 46.33% | 48.24% | 48.93% | 49.15% | 49.11% | 48.29% | 49.45% | 49.46% | 48.83% | 47.2% | 47.51% | 47.31% | 44.81% | 45.53% | 48.37% | 45.45% | 45.07% | 45.66% | 44.2% | 44.85% | 47.25% | 48.74% | 46.96% | 44.81% | 46.29% | 46% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 200K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | 0.06% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1000K | 0 | 203.64M | 33.68M | 31.77M | 24.85M | 35.34M | 40.14M | 674K | 301K | 740K | 511K | 464K | 592K | 1.3M | 7.92M | 7.25M | 6.67M | 5.44M | 5.22M | 5.68M | 7.07M | 10.15M | 16.09M | 8.41M | 11.09M | 7.94M | 4M | 2.8M | 1.2M | 500K |
| Operating Income | -1.13M | 1.95M | 740K | 6.77M | 32.65M | 38.64M | 16.18M | -1.07M | 22.43M | 27.55M | 30.77M | 18.83M | 18.21M | 21.83M | 30.66M | 37M | 30.75M | 32.42M | 37.96M | 22.65M | 20.04M | 14.66M | 2.01M | 1.58M | -1.14M | 20.62M | 27.14M | 14.6M | 9.2M | 6.8M | 4M |
| Operating Margin % | -0.29% | 0.49% | 0.17% | 1.41% | 6.07% | 7.82% | 3.6% | -0.23% | 6.27% | 8.16% | 9.44% | 6% | 5.84% | 7.34% | 10.47% | 13.04% | 12.26% | 13.89% | 15.76% | 10.68% | 11.04% | 9.56% | 1.45% | 1.25% | -1.18% | 12.96% | 17.27% | 16.72% | 14.94% | 16.83% | 16% |
| Operating Income Growth % | - | 163.24% | -89.06% | -79.28% | -15.5% | 138.9% | 1604.65% | -104.79% | -18.6% | -10.48% | 63.46% | 3.37% | -16.58% | -28.79% | -17.13% | 20.32% | -5.15% | -14.6% | 67.6% | 13.02% | 36.75% | 628.07% | 27.57% | 238.06% | -105.54% | -24.05% | 85.92% | 58.7% | 35.29% | 70% | 122.22% |
| EBITDA | 13.47M | 16.72M | 30.92M | 38.83M | 69.59M | 74.58M | 59.13M | 42.71M | 31.54M | 34.98M | 39.42M | 27.91M | 29.71M | 33.33M | 42.02M | 44.92M | 38M | 39.09M | 44.28M | 28.39M | 26.5M | 21.72M | 13.09M | 17.44M | 7.26M | 31.71M | 35.09M | 18.6M | 12M | 8M | 4.5M |
| EBITDA Margin % | 3.43% | 4.21% | 7.15% | 8.08% | 12.94% | 15.09% | 13.17% | 9.25% | 8.82% | 10.36% | 12.09% | 8.9% | 9.52% | 11.2% | 14.35% | 15.84% | 15.16% | 16.75% | 18.38% | 13.39% | 14.61% | 14.18% | 9.45% | 13.84% | 7.49% | 19.93% | 22.33% | 21.31% | 19.48% | 19.8% | 18% |
| EBITDA Growth % | 125% | -45.94% | -20.37% | -44.2% | -6.68% | 26.11% | 38.46% | 35.4% | -9.82% | -11.26% | 41.23% | -6.06% | -10.87% | -20.69% | -6.44% | 18.21% | -2.79% | -11.71% | 55.94% | 7.12% | 22.02% | 65.96% | -24.97% | 140.18% | -77.1% | -9.62% | 88.65% | 55% | 50% | 77.78% | 114.29% |
| D&A (Non-Cash Add-back) | 14.59M | 14.77M | 30.18M | 32.07M | 36.94M | 35.93M | 42.96M | 43.78M | 9.12M | 7.43M | 8.64M | 9.08M | 11.5M | 11.5M | 11.37M | 7.92M | 7.25M | 6.67M | 6.31M | 5.74M | 6.46M | 7.07M | 11.08M | 15.87M | 8.41M | 11.09M | 7.94M | 4M | 2.8M | 1.2M | 500K |
| EBIT | 756K | 1.95M | 5.65M | 9.35M | 33.19M | 37.41M | 18.27M | -1.54M | 23.52M | 27.55M | 31.8M | 19.32M | 20.03M | 23.74M | 32.18M | 37.09M | 34.3M | 33.73M | 37.96M | 30M | 26.09M | 19.5M | 12.71M | 4.17M | 11.03M | 23.73M | 27.14M | 14.6M | 9.2M | 6.8M | 4M |
| Net Interest Income | -2.82M | -2.68M | -3.01M | -3.06M | -2.46M | -4.22M | -5.34M | -8.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 2.82M | 2.68M | 3.01M | 3.06M | 2.46M | 4.22M | 5.34M | 8.05M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -48.7M | -121.36M | 1.9M | -481K | -1.93M | -5.45M | -3.24M | -8.52M | 1.1M | -178K | -65K | 493K | 176K | -1.84M | 79K | 1.65M | 3.55M | 1.31M | 6.85M | 7.35M | 6.05M | 4.72M | -4.18M | 1.6M | 1.42M | 6.42M | 6.89M | 3M | 2.9M | 2.5M | 700K |
| Pretax Income | -49.83M | -119.41M | 2.64M | 6.29M | 30.72M | 33.19M | 12.93M | -9.6M | 23.52M | 27.37M | 30.71M | 19.32M | 18.39M | 19.99M | 32.26M | 38.65M | 34.3M | 33.73M | 44.81M | 30M | 26.09M | 19.38M | 6.23M | 3.18M | 278K | 27.04M | 34.04M | 17.6M | 12.1M | 9.3M | 4.7M |
| Pretax Margin % | -12.7% | -30.09% | 0.61% | 1.31% | 5.71% | 6.71% | 2.88% | -2.08% | 6.58% | 8.11% | 9.42% | 6.16% | 5.89% | 6.72% | 11.01% | 13.63% | 13.68% | 14.46% | 18.6% | 14.15% | 14.38% | 12.65% | 4.5% | 2.52% | 0.29% | 16.99% | 21.66% | 20.16% | 19.64% | 23.02% | 18.8% |
| Income Tax | 4.08M | -49K | 8.38M | 3.23M | 8.92M | 8.35M | 2.94M | -29K | 8.14M | 12.23M | 13.06M | 7.32M | 7.52M | 7.22M | 6.24M | 15.63M | 13.79M | 13.96M | 15.6M | 11.06M | 10.04M | 8.03M | 2.1M | 985K | -311K | 8.93M | 12.42M | 6.6M | 4.6M | 3.7M | 700K |
| Effective Tax Rate % | -8.2% | 0.04% | 317.94% | 51.47% | 29.03% | 25.15% | 22.76% | 0.3% | 34.62% | 44.69% | 42.52% | 37.91% | 40.92% | 36.11% | 19.33% | 40.46% | 40.21% | 41.4% | 34.8% | 36.87% | 38.46% | 41.44% | 33.71% | 31.01% | -111.87% | 33% | 36.5% | 37.5% | 38.02% | 39.78% | 14.89% |
| Net Income | -53.91M | -119.36M | -5.75M | 3.05M | 21.81M | 24.84M | 9.99M | -9.57M | 15.38M | 15.14M | 17.65M | 12M | 10.87M | 12.77M | 26.02M | 23.01M | 20.51M | 19.77M | 29.21M | 18.94M | 17.76M | 11.35M | 4.13M | 2.19M | 589K | 18.12M | 21.61M | 11M | 7.5M | 5.6M | 4M |
| Net Margin % | -13.74% | -30.07% | -1.33% | 0.63% | 4.05% | 5.03% | 2.23% | -2.07% | 4.3% | 4.48% | 5.41% | 3.82% | 3.48% | 4.29% | 8.88% | 8.11% | 8.18% | 8.47% | 12.13% | 8.93% | 9.78% | 7.41% | 2.98% | 1.74% | 0.61% | 11.39% | 13.75% | 12.6% | 12.18% | 13.86% | 16% |
| Net Income Growth % | 37.56% | -1976.91% | -288.43% | -86.01% | -12.23% | 148.69% | 204.39% | -162.22% | 1.59% | -14.23% | 47.14% | 10.41% | -14.93% | -50.92% | 13.1% | 12.21% | 3.73% | -32.33% | 54.23% | 6.69% | 56.47% | 174.64% | 88.59% | 271.99% | -96.75% | -16.18% | 96.49% | 46.67% | 33.93% | 40% | 207.69% |
| Net Income (Continuing) | -53.91M | -119.36M | -5.75M | 3.05M | 21.81M | 24.84M | 9.99M | -9.57M | 15.38M | 15.14M | 17.65M | 12M | 10.87M | 13.02M | 26.3M | 23.01M | 20.51M | 18.87M | 29.21M | 18.94M | 16.06M | 12.26M | 5.68M | 2.19M | 589K | 18.12M | 21.61M | 11M | 7.5M | 5.6M | 4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -318K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.83 | -6.28 | -0.30 | 0.16 | 1.14 | 1.28 | 0.53 | -0.52 | 0.84 | 0.83 | 0.97 | 0.66 | 0.57 | 0.60 | 1.13 | 0.99 | 0.89 | 0.86 | 1.24 | 0.80 | 0.77 | 0.55 | 0.22 | 0.10 | 0.02 | 0.76 | 0.88 | 0.55 | 0.40 | 0.32 | 0.31 |
| EPS Growth % | 38.26% | -1993.33% | -287.5% | -85.96% | -10.94% | 141.51% | 201.92% | -161.9% | 1.2% | -14.43% | 46.97% | 15.79% | -5% | -46.9% | 14.14% | 11.24% | 3.49% | -30.65% | 55% | 3.9% | 40% | 150% | 120% | 400% | -97.37% | -13.64% | 60% | 37.5% | 25% | 3.23% | 82.35% |
| EPS (Basic) | - | -6.28 | -0.30 | 0.16 | 1.15 | 1.30 | 0.53 | -0.52 | 0.85 | 0.84 | 0.98 | 0.67 | 0.58 | 0.61 | 1.16 | 1.02 | 0.91 | 0.87 | 1.27 | 0.82 | 0.80 | 0.56 | 0.22 | 0.10 | 0.03 | 0.80 | 1.03 | 0.61 | 0.44 | 0.34 | 0.31 |
| Diluted Shares Outstanding | 19.07M | 19.02M | 19.09M | 19.26M | 19.17M | 19.36M | 18.93M | 18.49M | 18.38M | 18.24M | 18.27M | 18.14M | 19.01M | 21.35M | 22.93M | 23.16M | 23.06M | 22.88M | 23.59M | 23.73M | 22.97M | 21.88M | 22.46M | 22.84M | 23.65M | 23.91M | 24.53M | 20.07M | 18.74M | 17.5M | 13.11M |
| Basic Shares Outstanding | 19.07M | 19.02M | 19.09M | 19.18M | 18.97M | 19.11M | 18.83M | 18.49M | 18.09M | 17.92M | 17.98M | 17.93M | 18.71M | 20.86M | 22.5M | 22.67M | 22.48M | 22.64M | 23.06M | 23.07M | 22.2M | 21.41M | 22.02M | 22.55M | 23.19M | 22.55M | 20.99M | 18.03M | 17.04M | 16.47M | 13.11M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | 94.29% | 90.03% | 73.58% | 101.53% | 110.1% | 97.04% | 48.37% | - | 333.61% | - | - | - | - | - | - | - | - | - | - | - | - | - | 140% |
Persistent revenue contraction
As indicated by the most recent quarterly data, Forrester's revenue has experienced a sustained decline, with a year-over-year contraction of 4.9% in 2026Q1, following a series of negative growth quarters that suggest significant challenges in maintaining the firm's core subscription-based research and consulting business model.
The consistent negative revenue growth suggests that the company is struggling to offset churn with new business wins, potentially indicating a weakening value proposition for its research products. Investors should monitor whether the transition to the Forrester Decisions platform is causing friction in the sales cycle or if the market for CX-focused advisory services is experiencing a broader cyclical downturn.
Based on reported financial statements, Forrester's gross margin has fluctuated significantly, reaching a low of 50.7% in 2026Q1, which highlights the difficulty of maintaining profitability in a human-capital-intensive consulting model where specialized analyst costs cannot be easily scaled down during periods of declining top-line revenue.
The inability to maintain consistent gross margins suggests that the firm lacks the pricing power necessary to pass on rising talent costs to its client base. This margin volatility appears to be exacerbated by the high fixed-cost nature of the business, which leaves little room for operational error when revenue growth turns negative.
According to the income statement, Forrester's operating income has frequently dipped into negative territory, with a -6.7% operating margin in 2026Q1, demonstrating that the firm has failed to achieve the necessary operating leverage to scale its SG&A expenses efficiently against its current revenue base.
The persistent reliance on high SG&A spending relative to gross profit suggests that the company is currently unable to decouple its overhead from its revenue generation. This lack of operating leverage warrants further investigation into whether the current cost structure is sustainable without a significant rebound in high-margin research subscriptions.
As evidenced by the deeply negative net margins, such as the -33.5% reported in 2025Q4, Forrester's bottom-line performance appears heavily impacted by non-operating items or potential impairment charges that obscure the underlying cash-generating capability of the firm's core consulting and research operations.
The significant discrepancy between operating performance and net income suggests that investors should focus on cash flow metrics rather than GAAP EPS, which is currently distorted by non-cash accounting adjustments. The recurring nature of these bottom-line losses may indicate that the company is still absorbing the costs of past strategic acquisitions.
While management emphasizes the recurring nature of the Forrester Decisions platform, the reported figures suggest that the firm's reliance on multi-year contracts has not prevented a multi-quarter revenue decline, raising questions about the long-term durability of the company's client retention and upsell strategies.
Short-sellers would likely focus on the fact that even with a subscription-heavy model, the company is unable to stabilize its top line, which may imply that the 'Forrester Wave' methodology is losing its competitive moat. Investors should remain cautious until there is clear evidence that the product transition is successfully reversing the current negative growth trajectory.
Quick answers to the most common questions about buying FORR stock.
For fiscal year 2025, Forrester Research, Inc. (FORR) reported total revenue of $396.9M. This represents a 1487.6% increase compared to $25.0M in 1996.
Forrester Research, Inc. (FORR) reported a net loss of $119.4M for the fiscal year ending 2025.
Forrester Research, Inc. (FORR) reported an operating income of $1.9M, resulting in an operating profit margin of 0.5%. This margin reflects the operational efficiency of the business before interest and taxes.
Forrester Research, Inc. (FORR) generated $211.4M in gross profit for the year, representing a gross profit margin of 53.3%. This demonstrates the company's core pricing power and production efficiency.