Key Highlights

  • Total revenues were $86.1 million, compared with $94.3 million in the third quarter of 2025.
  • Contract value was $281.9 million, down 3.5% from the prior year.
  • GAAP net loss was $4.4 million, or $0.23 per diluted share, versus a $2.1 million loss, or $0.11.
  • Adjusted Net Income was $4.7 million, or $0.24 per diluted share, against $7.2 million, or $0.37.
  • Full-year adjusted EPS guidance was narrowed to about $0.77 to $0.82.

A research firm reports a smaller Top Line but a higher guidance floor

Forrester (NASDAQ:FORR), based in Cambridge, Massachusetts, is a research and advisory firm that helps leaders in technology, customer experience, marketing, Revenue and product functions with research and continuous guidance. It reported third quarter results for the period ended September 30, 2026 on October 29, 2026.

Total revenues were $86.1 million, compared with $94.3 million a year earlier, a decline of about 8.7% on a calculated basis. Chairman and CEO George F. Colony described the Business as stabilizing and said the company is raising the low end of its 2026 Earnings Per Share guidance.

Research holds closer to last year while consulting falls sharply

Research revenue was $70.1 million, against $72.7 million in the prior year quarter, a decline of roughly 3.5% on a calculated basis. Consulting revenue was $14.7 million, compared with $21.5 million, which works out to a drop of about 31.3% on a calculated basis.

Why a $4.4 million GAAP loss sits beside $4.7 million of adjusted income

Income from operations was $2.4 million on a GAAP basis, compared with $4.5 million a year earlier. Income tax expense of $6.9 million on pre-tax income of $2.5 million pushed the quarter to a net loss of $4.4 million, or $0.23 per share, compared with a loss of $2.1 million, or $0.11.

Adjusted net income of $4.7 million, or $0.24 per diluted share, applies an adjusted effective tax rate of 29% and excludes stock-based compensation of $2.6 million, amortization of acquisition-related intangibles of $2.1 million and a restructuring Credit of $0.5 million. The prior year figure was $7.2 million, or $0.37.

Retention improves even as contract value and headcount shrink

Contract value ended the quarter at $281.9 million, compared with $292.2 million a year earlier, recast at 2026 foreign currency rates. Client retention rose to 78% from 74%, and wallet retention rose to 89% from 86%.

Total headcount fell to 1,337 from 1,485, and the sales force was 504, compared with 550. Management also pointed to new AI offerings unveiled during the quarter, including AI Access Plus and Team Solutions, which it expects to help results for the rest of the year and into next year.

Balance sheet, Debt and the 2026 outlook

Cash, cash equivalents and marketable investments were $117.6 million at September 30, 2026, compared with $127.7 million at December 31, 2025, while debt outstanding was $30.0 million, down from $35.0 million. Net cash provided by Operating Activities was $33.4 million, versus $24.3 million, while repurchases of common stock were $11.3 million, against $2.4 million.

For full-year 2026, the company guides to total revenues of approximately $350.0 million to $360.0 million, a decline of 11.8% to 9.3%. Adjusted Operating Margin is guided to roughly 6.0% to 6.5%, and adjusted diluted EPS to approximately $0.77 to $0.82.

What to watch after the guidance floor moves up

The quarter combines slower contract value, a lower headcount and improving retention rates. Readers following the company will likely watch whether contract value stabilizes, whether the new AI products add to renewals, and how consulting revenue trends against the full-year revenue range.