0001193125-26-105114
SEC filingForrester Research, Inc. reported a net loss of $119.4 million for fiscal year 2025, driven by a significant goodwill impairment charge of $110.7 million and restructuring costs of $11.7 million. Total revenues were $396.9 million, with research revenues constituting 75% of the total. Despite the net loss, the company generated positive operating cash flow of $21.1 million, a $25.0 million improvement from the prior year's $3.9 million cash used in operations. The balance sheet shows total assets of $404.0 million, with cash, cash equivalents, and marketable investments totaling $127.7 million. The company had $35.0 million in debt outstanding under its credit facility as of December 31, 2025, and maintains a $77.5 million stock repurchase authorization.
Forrester Research reported total revenues of $396.9 million for fiscal year 2025, ending December 31, 2025. The company incurred a net loss of $119.4 million, primarily due to a $110.7 million goodwill impairment charge and $11.7 million in restructuring costs. Operating loss was $113.2 million, with total operating expenses reaching $510.1 million. Basic and diluted loss per common share was $6.00. Despite the net loss, the company generated positive operating cash flow of $21.1 million, representing a significant improvement from the $3.9 million cash used in operating activities during the prior year. The $25.0 million increase in cash from operations was primarily driven by reduced payments for accrued expenses, including lower year-end incentive compensation payments and the non-recurrence of a legal settlement payment made in 2024.
The company's revenue composition shows research revenues constituted 75% of total revenues during 2025, though specific segment revenue figures are not provided in the available data. Research revenues are described as generally renewable and typically payable in advance, providing some revenue stability. The document does not provide detailed segment breakdowns, geographic mix, or specific growth drivers beyond the general characterization of research revenues. Total revenues of $396.9 million represent the consolidated figure without comparative prior year data in the provided information to calculate year-over-year growth rates.
Gross profit calculated from the provided data is $226.2 million (total revenues of $396.9 million minus cost of services and fulfillment of $170.7 million), resulting in a gross margin of 57.0%. Operating margin was negative 28.5% due to the operating loss of $113.2 million. The cost structure shows significant non-recurring charges including the $110.7 million goodwill impairment and $11.7 million restructuring costs. Excluding these items, operating expenses would have been $387.7 million. Selling and marketing expenses were $149.5 million, general and administrative expenses were $52.7 million, depreciation was $6.0 million, and amortization of intangible assets was $8.7 million.
The company generated $21.1 million in operating cash flow during 2025, with investing activities using $14.1 million primarily for net purchases of marketable investments ($12.7 million) and property and equipment purchases ($3.0 million). Financing activities used $2.6 million primarily for stock repurchases. Free cash flow (operating cash flow minus capital expenditures) was $18.1 million. The balance sheet shows total assets of $404.0 million, with current assets of $212.7 million including $63.3 million in cash and cash equivalents and $64.3 million in marketable investments. Total liabilities were $277.5 million, including $35.0 million in current debt and $141.8 million in deferred revenue. Stockholders' equity was $126.5 million. The company had $127.7 million in cash, cash equivalents, and marketable investments as of December 31, 2025, with $87.8 million held outside the U.S.
The company expects to incur capital expenditures of approximately $28.0 million during the first half of 2026 for headquarters renovations, with a tenant improvement allowance of $17.2 million expected from the landlord. Management believes current cash balances and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months and meet known long-term cash requirements. The credit facility was amended in March 2026 to extend maturity to March 2029 and reduce the facility from $150.0 million to $50.0 million. The company was in compliance with all loan covenants as of December 31, 2025, and expects to continue compliance through the next 12 months. Operating lease commitments total $73.3 million over the next five years, with $7.6 million due within one year.