Forrester's Revenue Declines Spark Restructuring, AI Integration Focus
Event summary
- Forrester Research reported a 6% decline in contract value (CV) to $292.4 million for 2025, compared to $311.9 million in 2024.
- Total revenues decreased to $396.9 million in 2025 from $432.5 million in 2024.
- The company recorded a GAAP net loss of $119.4 million for 2025, including a $110.7 million goodwill impairment charge.
- CEO George Colony announced a restructuring plan aimed at improving cost efficiency and driving CV growth.
- Forrester is projecting full-year 2026 revenues between $345.0 million and $360.0 million, a 9-13% decline.
The big picture
Forrester's results reflect broader challenges facing the market research industry, where increased competition and evolving client needs are putting pressure on pricing and requiring firms to adapt quickly. The company's pivot towards AI-powered services and self-service offerings signals an attempt to address these trends, but the restructuring and revenue decline suggest a more significant strategic adjustment is underway. The goodwill impairment highlights a reassessment of past acquisitions and their contribution to future growth.
What we're watching
- Execution Risk
- The success of Forrester's restructuring plan will hinge on its ability to rapidly cut costs and refocus its go-to-market strategy, a process that carries inherent operational risks and potential for further disruption.
- AI Adoption
- How effectively Forrester integrates AI across its product portfolio and demonstrates value to clients will be critical to reversing the decline in contract value and justifying its premium pricing.
- Client Retention
- Whether Forrester can sustain its 77% client retention rate, particularly given the revenue decline and restructuring, will be a key indicator of its long-term viability and ability to weather current market headwinds.
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