Forrester Research (FORR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $85.5 million, down 5% year-over-year, with research revenue comprising 74–78% of total and consulting and events also declining.

• Net loss for Q1 2026 was $21.8 million (GAAP), a significant improvement from $87.3 million in Q1 2025; adjusted net loss was $0.7 million.

• The company is focusing on AI research, embedding AI in client workflows, and expanding AI offerings, with strong adoption and new integrations.

• Four key initiatives are underway: retention lifecycle execution, product portfolio expansion, sales growth culture, and actionable research.

• Workforce reductions and office closures were implemented to align costs with revenue outlook.

Financial highlights

• Research revenue was $66.9 million (-2% YoY), consulting $18.6 million (-13% YoY), and events revenue was negligible.

• Operating loss was $18.6 million (GAAP), with adjusted operating margin at -1.0% and adjusted EPS at -$0.04.

• Free cash flow was $19–$19.4 million; cash and equivalents at quarter-end exceeded $145 million, with $35 million in debt.

• Deferred revenue increased to $173.2 million; net cash from operating activities was $25.6 million.

• Effective tax rate was (17)% for Q1 2026, with full-year expected between negative 5% and negative 10%.

Outlook and guidance

• 2026 revenue guidance is $350–$360 million, a 9–12% decline from 2025; adjusted operating margin expected at 6–6.5%, and adjusted EPS at $0.72–$0.82.

• GAAP operating margin expected at negative 3.3% to negative 2.8%; diluted loss per share $0.73–$0.63.

• Research revenue expected to decline mid-single digits, consulting in the low 20s, and events in the mid to high teens.

• Management expects to remain in compliance with debt covenants and maintain sufficient liquidity.