Forrester Research (FORR) closed FY 2025 with Q4 revenue of US$101.1 million and basic EPS of a US$1.78 loss, while trailing 12 month figures show total revenue of US$396.9 million and a basic EPS loss of US$6.28 alongside net income losses. Over recent quarters, reported revenue has ranged from US$89.9 million to US$111.7 million, with quarterly basic EPS swinging between a US$4.62 loss and a US$0.21 profit. Over the same period, trailing 12 month net income shifted from a loss of US$5.75 million in late 2024 to a loss of US$119.4 million by Q4 2025. That mix of relatively stable top line and deeper losses leaves margins under clear pressure, which is what investors will be weighing against the forward story.

See our full analysis for Forrester Research.

With the latest figures on the table, the next step is to see how these margin trends line up with the widely followed narratives around Forrester Research's risks, rewards, and long term earnings potential.

Losses Concentrated In FY 2025

• Across FY 2025, Forrester recorded net income losses of US$87.3 million in Q1, US$33.9 million in Q4, and a trailing 12 month loss of US$119.4 million on US$396.9 million of revenue.
• Critics highlight that multi year loss growth of 77.9% a year and a current trailing 12 month net margin that remains negative both point to profitability pressure, while the consensus narrative also talks about cost reductions such as a 12% headcount cut and operational changes to support margin recovery, creating a clear tension between the current loss profile and management efforts to improve efficiency.
  • This trailing 12 month loss of US$119.4 million compares with much smaller losses in past periods, which lines up with the view that losses have widened over several years even as management focuses on performance management and expense cuts.
  • At the same time, analysts are assuming margins move from about a 30.1% loss today to a 2.2% profit in three years, so the present loss levels are being weighed against expectations of margin repair tied to those cost measures and contract mix changes.

Top Line Softens While Contracts Lengthen

• Trailing 12 month revenue eased from US$432.5 million in Q4 2024 to US$396.9 million by Q4 2025, and analysts expect revenue to decline by about 5.3% a year over the next three years to US$338.5 million by 2029.
• The consensus narrative points to growth in multiyear contracts, with up to 72% of contract value now multiyear and a rising share of three year deals, while at the same time calling out an 8% revenue drop year over year and pressure across research, consulting, and events. The key question for investors is whether longer contracts and higher retention can offset the forecast revenue decline path that is already visible in the trailing 12 month numbers.
  • Contract value is reported as down 7% and wallet retention down 1%, which fits the bearish concern that clients are cutting or slowing research spend even as Forrester secures longer commitments from those that stay.
  • Analysts assume revenue ends up at US$338.5 million by 2029 versus US$396.9 million in the latest trailing 12 month period, so the optimism around contract quality is being modeled alongside a smaller overall revenue base.

On these figures, skeptics focus on shrinking revenue, while others point to contract depth and new offerings as potential offsets, which are unpacked further in the bearish narrative 🐻 Forrester Research Bear Case

Valuation Gap Versus Profit Turnaround Hopes

• The stock trades at US$6.09 with a P/S of 0.3x against 1.1x for the US Professional Services industry and 2.1x for peers, while analysts have a US$6.00 price target and a DCF fair value of about US$50.92, all based on forecasts that earnings rise from a trailing 12 month loss of US$119.4 million to a profit of US$7.4 million and EPS of US$0.39 by 2029.
• Supporters of the bullish view point to this large valuation gap and to forecasts of very strong earnings growth, about 148.44% a year with margins improving from a 30.1% loss to a 2.2% profit. At the same time, the consensus narrative itself also flags revenue declines, weaker client retention and sales conversion challenges, so the numbers here create a clear trade off between a low current P/S and the operational work needed to reach the earnings path that underpins both the US$6.00 price target and the much higher DCF fair value.
  • Bulls argue that AI focused research tools, a 15% quarter on quarter increase in the sales pipeline and more government contract wins can support the forecast earnings turnaround, which is what would need to happen for those valuation markers to be justified.
  • On the other hand, the trailing 12 month revenue and loss profile, together with forecasts of revenue declining about 5.2% a year, shows that the starting point for that turnaround is a company still unprofitable and operating on a smaller revenue base than it had in late 2024.

If you want to see how the bullish case connects these earnings forecasts and valuation signals, the dedicated bull narrative lays it all out in one place 🐂 Forrester Research Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Forrester Research on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If the mix of pressure and optimism in this story feels unresolved, do not wait for the next headline. Instead, dig into the numbers yourself and see what stands out. To understand why some investors are still optimistic, take a closer look at the 3 key rewards.

See What Else Is Out There

Forrester Research is dealing with widening losses, shrinking revenue, weaker client retention, and a negative margin profile that leaves the earnings turnaround heavily dependent on execution.

If that mix of pressure points feels uncomfortable, balance it by checking companies with stronger profitability and stability through the 74 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.