Forrester (NASDAQ: FORR) sees 2026 revenue decline but positive adjusted EPS
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Forrester Research reported first‑quarter 2026 revenue of $85.5 million, down from $89.9 million a year earlier, with contract value of $285.3 million, a 3% decline. On a GAAP basis, the company posted a net loss of $21.8 million, or $1.14 per diluted share.
The quarter included a non‑cash goodwill impairment charge of $10.8 million. On an adjusted basis, net loss was $0.7 million, or $0.04 per share. For 2026, Forrester guides GAAP revenue of $350.0 million–$360.0 million, an expected decline of 11.8% to 9.3%, GAAP diluted loss per share of $0.73–$0.63, and adjusted diluted EPS of $0.72–$0.82.
Positive
- None.
Negative
- 2026 outlook points to revenue contraction — Full‑year GAAP revenue is guided to $350–$360 million, an 11.8% to 9.3% decline versus the prior year, with GAAP operating margin expected to remain negative despite positive adjusted profitability.
Insights
Forrester posts narrower loss but guides to double‑digit 2026 revenue decline.
Forrester generated Q1 2026 revenue of $85.5 million, down from $89.9 million. GAAP net loss improved to $21.8 million versus $87.3 million as goodwill impairment dropped to $10.8 million from $83.9 million. Adjusted results swung from $2.0 million profit to a $0.7 million loss.
Key operating metrics were mixed: contract value slipped 3% to $285.3 million, while client retention rose to 78% and wallet retention to 89%. Cash, cash equivalents and marketable investments increased to $145.5 million with debt steady at $35.0 million, supporting liquidity.
Guidance is cautious on growth but more constructive on profitability. Management expects 2026 GAAP revenue of $350–$360 million, implying a 11.8% to 9.3% decline, GAAP operating margin of roughly negative 3.3% to negative 2.8%, but adjusted operating margin of 6.0% to 6.5% and adjusted EPS of $0.72–$0.82.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 total revenue: $85.5 million
Q1 2025 total revenue: $89.9 million
Q1 2026 GAAP net loss: $21.8 million ($1.14 per share)
+5 more
8 metrics
Q1 2026 total revenue
$85.5 million
Three months ended March 31, 2026
Q1 2025 total revenue
$89.9 million
Three months ended March 31, 2025
Q1 2026 GAAP net loss
$21.8 million ($1.14 per share)
Includes $10.8 million goodwill impairment
Q1 2026 adjusted net loss
$0.7 million ($0.04 per share)
Adjusted effective tax rate 29%
Contract value
$285.3 million
As of March 31, 2026; 3% decline vs prior year
Cash and investments
$145.5 million
Cash, cash equivalents and marketable investments at March 31, 2026
2026 GAAP revenue guidance
$350–$360 million
Full-year 2026; decline of 11.8% to 9.3% vs prior year
2026 adjusted EPS guidance
$0.72–$0.82
Full-year 2026 adjusted diluted earnings per share
Key Terms
contract value, goodwill impairment, adjusted operating margin, deferred revenue, +2 more
6 terms
contract value financial
"with contract value at $285.3 million, down 3% compared with the prior year."
Contract value is the total amount of money a customer has agreed to pay under a contract for goods or services over its full term. Investors care because it represents the revenue a company can expect to receive or recognize in the future — like the size of a signed order — and helps assess sales backlog, cash flow visibility, and growth potential. Note that timing and accounting treatment can affect when that value shows up in financial statements.
goodwill impairment financial
"goodwill impairment charges incurred during the first quarters of 2026 and 2025 of $10.8 million and $83.9 million, respectively"
Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.
adjusted operating margin financial
"Adjusted operating margin of approximately 6.0% to 6.5%"
Adjusted operating margin shows how much profit a company makes from its core business activities, after removing unusual or one-time costs and income. It helps investors see the company's true profitability by providing a clearer picture, similar to removing unexpected expenses to understand the regular performance. This metric is useful for comparing companies or tracking performance over time, as it highlights consistent earning power.
deferred revenue financial
"Deferred revenue | | $ | 173,191 | | | $ | 141,812 |"
Cash a company has already received for goods or services it has promised but not yet delivered; it's recorded as a liability because the company still owes that product, service, or future revenue recognition. For investors, deferred revenue signals upcoming work or deliveries that will convert into reported sales over time and affects short-term obligations, cash flow quality, and how quickly a firm can grow recognized revenue—think of it like prepaid subscriptions or gift cards a business must honor later.
stock-based compensation financial
"Stock-based compensation expense—we exclude stock-based compensation from our adjusted results"
Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.
credit loss expense on note receivable financial
"Credit loss expense on note receivable | | | — | | | | (910 | )"
Earnings Snapshot
Revenue: $85.5 million · Guidance included
Q1 2026
Revenue
$85.5 million
GAAP net loss
$21.8 million
Adjusted net income (loss)
($0.7 million)
Contract value
$285.3 million
-3% vs prior year
Guidance
For 2026, Forrester guides GAAP revenue of $350–$360 million (11.8% to 9.3% decline), GAAP diluted loss per share of $0.73–$0.63, and adjusted diluted EPS of $0.72–$0.82, with adjusted operating margin of 6.0%–6.5%.
FAQ
How did Forrester (FORR) perform financially in Q1 2026?
Forrester reported Q1 2026 revenue of $85.5 million and a GAAP net loss of $21.8 million. Revenue declined from $89.9 million a year earlier. Net loss improved from $87.3 million due mainly to a smaller goodwill impairment charge compared with the prior‑year quarter.
What was Forrester (FORR)’s adjusted profitability in Q1 2026?
On an adjusted basis, Forrester posted a Q1 2026 net loss of $0.7 million, or $0.04 per share. This compares with adjusted net income of $2.0 million, or $0.11 per share, in Q1 2025, after excluding items like goodwill impairment, restructuring and stock‑based compensation.
What 2026 revenue and earnings guidance did Forrester (FORR) provide?
Forrester expects 2026 GAAP revenue of $350–$360 million and a diluted loss per share of $0.73–$0.63. This implies a revenue decline of 11.8% to 9.3%. Adjusted diluted earnings per share are guided to $0.72–$0.82, with adjusted operating margin of 6.0%–6.5%.
How are Forrester (FORR)’s key metrics like contract value and retention trending?
Contract value was $285.3 million as of March 31, 2026, down 3% year over year. However, client retention improved to 78% from 73%, and wallet retention rose to 89% from 86%, indicating stronger spending among retained clients despite fewer total clients.
What is the impact of goodwill impairment on Forrester (FORR)’s results?
Q1 2026 results include a non‑cash goodwill impairment charge of $10.8 million, or $0.56 per diluted share. This is much lower than the $83.9 million, or $4.44 per share, charge recorded in Q1 2025, significantly reducing the year‑over‑year drag on reported net income.
What does Forrester (FORR)’s balance sheet look like after Q1 2026?
As of March 31, 2026, Forrester held $145.5 million in cash, cash equivalents and marketable investments and $35.0 million of debt. Deferred revenue totaled $173.2 million, up from $141.8 million at December 31, 2025, reflecting billed but not yet recognized revenue.