Forrester Plunges to $85.5M Loss on Goodwill Impairment
Ticker: FORR · Form: 10-Q · Filed: Nov 10, 2025 · CIK: 1023313
Sentiment: bearish
Topics: Goodwill Impairment, Net Loss, Revenue Decline, Credit Risk, Macroeconomic Factors, Research & Consulting, 10-Q Filing
TL;DR
**Forrester's massive goodwill write-down and revenue slide make it a hard pass for now; wait for a clear turnaround strategy.**
AI Summary
Forrester Research, Inc. (FORR) reported a significant net loss of $85.485 million for the nine months ended September 30, 2025, a substantial increase from a net loss of $6.179 million in the same period of 2024. This was primarily driven by an $83.895 million goodwill impairment charge recorded in Q1 2025 for its Research reporting unit, triggered by a sustained decline in stock price and macroeconomic uncertainties. Total revenues decreased by 8.8% to $295.830 million for the nine months ended September 30, 2025, down from $324.429 million in 2024, with Research revenue falling by $18.322 million and Consulting by $4.917 million. The company also recorded a $7.310 million credit loss expense on a note receivable from the FeedbackNow divestiture, reflecting increased default risk. Despite these losses, cash and cash equivalents increased to $65.121 million as of September 30, 2025, from $56.087 million at December 31, 2024, and net cash provided by operating activities was $24.293 million for the nine months ended September 30, 2025, a turnaround from a $2.031 million use in 2024. Total assets declined to $414.181 million from $503.862 million, largely due to the goodwill impairment.
Why It Matters
Forrester's substantial net loss and revenue decline signal significant operational challenges and a potential shift in market perception for investors. The $83.9 million goodwill impairment reflects a re-evaluation of its core Research segment's value, which could impact future strategic decisions and investor confidence. For employees, this could indicate potential restructuring or cost-cutting measures beyond the $1.887 million in restructuring costs already incurred. Customers might see changes in service offerings or pricing as the company navigates a tougher macroeconomic environment and competitive landscape, particularly with the decline in contract bookings. The broader market for research and consulting services may interpret this as a sign of increased pressure on traditional business models.
Risk Assessment
Risk Level: high — The company reported an $85.485 million net loss for the nine months ended September 30, 2025, primarily due to an $83.895 million goodwill impairment charge. This, coupled with an 8.8% decline in total revenues to $295.830 million and a $7.310 million credit loss expense on a note receivable, indicates significant financial distress and operational challenges.
Analyst Insight
Investors should exercise extreme caution and consider avoiding FORR until a clear and sustainable turnaround strategy is demonstrated. Monitor future filings for signs of revenue stabilization, improved profitability, and successful integration of any new strategic initiatives to mitigate the substantial goodwill impairment and credit loss risks.
Financial Highlights
- revenue
- $295.830M
- total Assets
- $414.181M
- net Income
- -$85.485M
- eps
- -$4.49
- cash Position
- $65.121M
- revenue Growth
- -8.8%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Research | ||
| Consulting |
Key Numbers
- $85.485M — Net loss for nine months ended Sept 30, 2025 (Increased significantly from $6.179M net loss in 2024)
- $83.895M — Goodwill impairment charge (Recorded for the Research reporting unit in Q1 2025)
- $295.830M — Total revenues for nine months ended Sept 30, 2025 (Decreased 8.8% from $324.429M in 2024)
- $7.310M — Credit loss expense on note receivable (Recorded for the nine months ended Sept 30, 2025, due to increased default risk)
- $0.11 — Basic loss per common share for Q3 2025 (Improved from $0.30 in Q3 2024)
- $4.49 — Basic loss per common share for nine months ended Sept 30, 2025 (Significantly worse than $0.32 in 2024)
- $65.121M — Cash and cash equivalents as of Sept 30, 2025 (Increased from $56.087M at Dec 31, 2024)
- $24.293M — Net cash provided by operating activities for nine months ended Sept 30, 2025 (Turnaround from $2.031M used in 2024)
- $414.181M — Total assets as of Sept 30, 2025 (Decreased from $503.862M at Dec 31, 2024)
- 19,003,000 — Shares of common stock outstanding as of Nov 3, 2025 (Reflects current ownership structure)
Key Players & Entities
- FORRESTER RESEARCH, INC. (company) — registrant
- Nasdaq Global Select Market (regulator) — exchange where common stock is registered
- FeedbackNow (company) — non-core product line divested in August 2024
- SEC (regulator) — Securities and Exchange Commission
- FASB (regulator) — Financial Accounting Standards Board
- Research (company) — reporting unit with goodwill impairment
- Consulting (company) — reporting unit
- United States (person) — country with changing trade policies
FAQ
Why did Forrester Research report such a large net loss in Q3 2025?
Forrester Research reported a net loss of $85.485 million for the nine months ended September 30, 2025, primarily due to an $83.895 million goodwill impairment charge recorded in the first quarter of 2025. This impairment was triggered by a substantial decline in the company's stock price and market capitalization, along with macroeconomic uncertainties and a larger-than-expected decline in contract bookings.
How did Forrester Research's revenue perform in the nine months ended September 30, 2025?
Forrester Research's total revenues decreased by 8.8% to $295.830 million for the nine months ended September 30, 2025, down from $324.429 million in the same period of 2024. Research revenue specifically declined by $18.322 million, and Consulting revenue decreased by $4.917 million.
What was the impact of the FeedbackNow divestiture on Forrester Research's financials?
The divestiture of the FeedbackNow product line in August 2024 resulted in a $9.0 million note receivable. Due to a change in the borrower's expected ability to make payments, Forrester Research recorded an additional $6.4 million allowance for credit losses during the three months ended September 30, 2025, contributing to a total credit loss expense of $7.310 million for the nine-month period.
What caused the goodwill impairment for Forrester Research's Research reporting unit?
The goodwill impairment for Forrester Research's Research reporting unit was triggered by a substantial and sustained decline in the company's stock price and overall market capitalization from mid-February 2025 through March 31, 2025. Other factors included the continued impact of the macroeconomic environment, uncertainty from changes in U.S. trade policies, and a larger-than-expected decline in contract bookings during Q1 2025.
How has Forrester Research's cash position changed?
Despite the net loss, Forrester Research's cash and cash equivalents increased to $65.121 million as of September 30, 2025, from $56.087 million at December 31, 2024. Net cash provided by operating activities was $24.293 million for the nine months ended September 30, 2025, a significant improvement from a $2.031 million use in the prior year.
What are the key risks identified by Forrester Research in this filing?
Key risks include the potential for further goodwill impairment charges, as the company will complete its annual test on November 30, 2025, and will monitor for interim triggers. The company also faces risks from lower than expected bookings growth, increases in costs, and other macroeconomic factors, as well as credit risk associated with the $9.9 million note receivable from the FeedbackNow divestiture.
What accounting pronouncements will affect Forrester Research in the future?
Forrester Research will adopt ASU No. 2023-09, 'Improvements to Income Tax Disclosures,' effective for annual filings beginning in 2025, which will require additional income tax disclosures. Additionally, ASU No. 2024-03, 'Disaggregation of Income Statement Expenses,' will be effective on January 1, 2027, requiring additional disclosures of expenses in the footnotes.
What is Forrester Research's current stock outstanding?
As of November 3, 2025, Forrester Research, Inc. had 19,003,000 shares of its common stock outstanding. This figure is important for calculating per-share metrics and understanding the company's market capitalization.
How did operating expenses change for Forrester Research?
Total operating expenses for Forrester Research increased to $372.008 million for the nine months ended September 30, 2025, from $323.138 million in the same period of 2024. This increase was primarily driven by the $83.895 million goodwill impairment charge, despite reductions in cost of services and fulfillment, selling and marketing, and general and administrative expenses.
What is the status of the note receivable from the FeedbackNow sale?
As of September 30, 2025, the balance of the note receivable, including capitalized interest, is $9.9 million, but its carrying value, net of a cumulative allowance for credit losses, is $2.6 million. The note is in nonaccrual status, meaning interest income recognition was suspended during Q3 2025 due to the borrower's reduced ability to make scheduled payments.
Risk Factors
- Goodwill Impairment [high — financial]: A significant goodwill impairment charge of $83.895 million was recorded in Q1 2025 for the Research reporting unit. This was triggered by a sustained decline in stock price and macroeconomic uncertainties, indicating a substantial decrease in the perceived value of acquired assets.
- Credit Loss Expense [medium — financial]: The company recorded a $7.310 million credit loss expense on a note receivable from the FeedbackNow divestiture for the nine months ended September 30, 2025. This reflects an increased risk of default on this receivable.
- Macroeconomic Uncertainties [medium — market]: Macroeconomic uncertainties were cited as a key factor contributing to the goodwill impairment. These uncertainties can negatively impact client spending on research and consulting services, affecting future revenues.
- Declining Stock Price [medium — market]: A sustained decline in Forrester Research's stock price was a direct trigger for the goodwill impairment. This indicates a negative market perception and can impact the company's ability to raise capital or engage in acquisitions.
Industry Context
Forrester Research operates in the market research and advisory services industry, facing competition from other research firms and consulting companies. The industry is sensitive to economic cycles, with clients potentially reducing discretionary spending on research and advisory services during periods of macroeconomic uncertainty.
Regulatory Implications
The company must adhere to SEC reporting requirements, including accurate disclosure of financial performance, material events like goodwill impairments, and risk factors. Failure to comply can result in penalties and reputational damage.
What Investors Should Do
- Monitor revenue trends in Research and Consulting segments.
- Assess the impact of the goodwill impairment and credit loss.
- Evaluate the sustainability of positive operating cash flow.
- Analyze the company's strategy to address macroeconomic headwinds.
Key Dates
- 2025-09-30: End of Nine Months Reporting Period — The period for which the significant net loss of $85.485 million and revenue decline of 8.8% were reported.
- 2025-03-31: End of Q1 2025 — The quarter in which an $83.895 million goodwill impairment charge was recorded, significantly impacting net income.
- 2025-09-30: Consolidated Balance Sheet Date — Total assets stood at $414.181 million, down from $503.862 million at year-end 2024, largely due to the goodwill impairment.
- 2025-09-30: Cash and Cash Equivalents — Reported at $65.121 million, an increase from $56.087 million at December 31, 2024, despite the net loss.
- 2024-12-31: Year-End Balance Sheet Date — Total assets were $503.862 million, and cash and cash equivalents were $56.087 million.
Glossary
- Goodwill Impairment Charge
- A non-cash accounting charge recognized when the carrying value of goodwill on a company's balance sheet exceeds its fair value, often due to poor performance or adverse market conditions of the acquired business. (A significant $83.895 million charge was recorded in Q1 2025, heavily contributing to the company's large net loss.)
- Credit Loss Expense
- An expense recognized to account for the expected losses on financial assets, such as notes receivable, due to a borrower's inability to repay. (Forrester recorded a $7.310 million expense related to a note receivable, indicating increased default risk.)
- Divestiture
- The act of selling off or disposing of a business unit, subsidiary, or asset. (The credit loss expense is related to a note receivable from the divestiture of FeedbackNow.)
- Basic loss per common share
- The net loss attributable to each outstanding share of common stock, calculated by dividing the net loss by the weighted-average number of common shares outstanding. (The basic loss per common share for the nine months ended September 30, 2025, was significantly worse at $4.49 compared to $0.32 in 2024.)
Year-Over-Year Comparison
For the nine months ended September 30, 2025, Forrester Research reported a substantial net loss of $85.485 million, a significant deterioration from a $6.179 million loss in the prior year, primarily due to an $83.895 million goodwill impairment. Total revenues decreased by 8.8% to $295.830 million, down from $324.429 million in 2024, with both Research and Consulting segments experiencing declines. While total assets fell to $414.181 million from $503.862 million, cash and cash equivalents increased to $65.121 million, and operating cash flow improved dramatically to a positive $24.293 million from a $2.031 million outflow.
Filing Stats: 4,452 words · 18 min read · ~15 pages · Grade level 15.4 · Accepted 2025-11-10 16:08:41
Filing Documents
- forr-20250930.htm (10-Q) — 3818KB
- forr-ex31_1.htm (EX-31.1) — 11KB
- forr-ex31_2.htm (EX-31.2) — 11KB
- forr-ex32_1.htm (EX-32.1) — 7KB
- forr-ex32_2.htm (EX-32.2) — 7KB
- 0001193125-25-274219.txt ( ) — 17016KB
- forr-20250930.xsd (EX-101.SCH) — 1425KB
- forr-20250930_htm.xml (XML) — 4692KB
Financial Statements (Unaudited)
Financial Statements (Unaudited) 3 Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 3 Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 4 Consolidated Statements of Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 6
Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements 7 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 24 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.
Controls and Procedures
Controls and Procedures 35 PART II OTHER INFORMATION Item 1.
Legal Proceedings
Legal Proceedings 36 Item 1A.
Risk Factors
Risk Factors 36 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 36 Item 3. Defaults Upon Senior Securities 36 Item 4. Mine Safety Disclosures 36 Item 5. Other Information 37 Item 6. Exhibits 37
SIGNATURES
SIGNATURES 38 PART I.
FINANC IAL STATEMENTS
ITEM 1. FINANC IAL STATEMENTS FORRESTER RESEARCH, INC. CONSOLIDATED B ALANCE SHEETS (In thousands, except per share data, unaudited) September 30, December 31, 2025 2024 ASSETS Current Assets: Cash and cash equivalents $ 65,121 $ 56,087 Marketable investments 66,831 48,582 Accounts receivable, net of allowance for expected credit losses of $ 310 and $ 434 as of September 30, 2025 and December 31, 2024, respectively 33,588 55,490 Deferred commissions 16,436 22,942 Prepaid expenses and other current assets 11,662 18,263 Total current assets 193,638 201,364 Property and equipment, net 9,702 11,699 Operating lease right-of-use assets 31,885 27,049 Goodwill 147,195 227,959 Intangible assets, net 20,824 27,475 Other assets 10,937 8,316 Total assets $ 414,181 $ 503,862 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 1,824 $ 965 Accrued expenses and other current liabilities 39,034 57,602 Deferred revenue 141,246 145,404 Total current liabilities 182,104 203,971 Long-term debt 35,000 35,000 Non-current operating lease liabilities 31,792 24,809 Other non-current liabilities 7,613 10,545 Total liabilities 256,509 274,325 Commitments and contingencies (Note 17) Stockholders' Equity: Preferred stock, $ 0.01 par value Authorized - 500 shares; issued and outstanding - none — — Common stock, $ 0.01 par value Authorized - 125,000 shares Issued - 25,511 and 25,119 shares as of September 30, 2025 and December 31, 2024, respectively Outstanding - 18,989 and 18,838 shares as of September 30, 2025 and December 31, 2024, respectively 255 251 Additional paid-in capital 301,755 292,217 Retained earnings 86,449 171,934 Treasury stock - 6,522 and 6,282 shares as of September 30, 2025 and December 31, 2024, respectively ( 229,615 ) ( 227,119 ) Accumulated other comp
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1 — Interim Consolidated Financial Statements Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("GAAP") for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for reporting on Form 10-Q. Accordingly, certain information and footnote disclosures required for complete financial statements are not included herein. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. It is recommended that these financial statements be read in conjunction with the consolidated financial statements and related notes that appear in the Forrester Research, Inc. ("Forrester") Annual Report on Form 10-K for the year ended December 31, 2024. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair statement of the financial position, results of operations, comprehensive loss, and cash flows as of the dates and for the periods presented have been included. The results of operations for the three and nine months ended September 30, 2025 may not be indicative of the results for the year ending December 31, 2025 , or any other period. Presentation of Restricted Cash The following table summarizes the end-of-period cash and cash equivalents from the Company's Consolidated Balance Sheets and the total cash, cash equivalents and restricted cash as presented on the accompanying Consolidated Statements of Cash Flows (in thousands). As of September 30, 2025 2024 Cash and cash equivalents shown in balance sheets $ 65,121 $ 62,754 Restricted cash classified in other assets (1): 2,252 2,242 Cash, cash equivalents and restricted cash shown in state