Executive Brief: Forrester Research Inc.
FORRESTER RESEARCH, INC.
Ultimate Buy-Side Analysis Report
GIDEON Fourester Analytical Framework:
Report Date: January 2026
Analyst Recommendation: HOLD
Overall Strategic Score: 6.2/10
Confidence Level: High
Analyst: David Wright, MSF, Fourester Research
EXECUTIVE SUMMARY
Forrester Research, Inc. represents a complex investment thesis within the global technology research and advisory services market, characterized by a venerable brand heritage spanning over four decades, significant transformation challenges evidenced by declining contract value metrics, and substantial strategic repositioning efforts through the Forrester Decisions platform migration. Founded in 1983 by Harvard-educated entrepreneur George F. Colony from a basement in Cambridge, Massachusetts, the firm has established itself as one of the world's most influential research and advisory organizations, serving 61% of Fortune 100 companies through proprietary research, consulting services, and professional events. The company trades on NASDAQ under ticker symbol FORR with a current market capitalization of approximately $185 million, reflecting substantial compression from historical valuations driven by persistent contract value declines that reached 7% year-over-year by Q3 2025 and revenue guidance for full-year 2025 projecting $400-415 million representing a 4-7.5% decline versus prior year. Despite these headwinds, Forrester has demonstrated innovation through its Izola generative AI tool launched in October 2023, completed its three-year Forrester Decisions platform migration with 80% of contract value transitioned, and maintains differentiated positioning through its customer obsession philosophy and flagship Forrester Wave evaluation methodology that remains industry standard for technology vendor assessment.
CORPORATE STRUCTURE & FUNDAMENTALS
Forrester Research, Inc. maintains its global corporate headquarters at 60 Acorn Park Drive, Cambridge, Massachusetts, strategically positioned within the Greater Boston technology and academic ecosystem that provides access to leading university talent and a vibrant innovation community adjacent to Harvard and MIT. The company was incorporated in 1983 by George Forrester Colony, who remains Chairman of the Board and Chief Executive Officer after more than 40 years of continuous leadership—a remarkable tenure that provides institutional continuity but raises succession planning considerations for long-term investors evaluating governance risk factors. Colony graduated from Harvard University in 1977 and previously worked at the Yankee Group, a Boston high-tech research firm where he developed the direct, provocative communication style that would become Forrester's trademark approach to delivering insights that challenge conventional thinking among business and technology leaders.
The organizational structure operates across three primary business segments: Research (which develops and delivers research, connect, and analytics products), Consulting (which includes revenues and costs associated with the firm's consulting organization), and Events (which develops and hosts in-person and virtual conferences). Forrester's flagship subscription platform, Forrester Decisions, launched in May 2021 and achieved its migration target of 80% contract value penetration by year-end 2024, representing a fundamental transformation of the company's product architecture designed to provide role-based strategic insights through continuous guidance models rather than discrete research reports. The company serves clients globally through offices across approximately 19 locations spanning North America, Europe, and Asia-Pacific, with operations supported by nearly 600 analysts according to industry estimates, though recent restructuring has reduced headcount with a 6% workforce reduction announced in January 2025 alongside consolidation of U.S. office locations to improve cost efficiency.
Corporate governance reflects founder-led decision-making with Colony maintaining executive leadership while the company's public company status introduces institutional oversight through board governance and regulatory compliance requirements. Forrester completed its largest acquisition in corporate history in January 2019, acquiring SiriusDecisions for $245 million in cash to expand capabilities in B2B marketing, sales, and product operational methodology, adding the renowned "Demand Waterfall" framework and approximately 340 employees to the organization. This transaction doubled Forrester's addressable market from approximately $20 billion to $40 billion by combining strategic advisory capabilities with operational excellence methodologies, though integration challenges and subsequent market headwinds have complicated realization of expected synergies.
MARKET POSITION & COMPETITIVE DYNAMICS
The global technology research and advisory services market presents significant scale differentials that position Forrester as a distant second-tier competitor behind industry leader Gartner, which generates technology research revenues exceeding $3.6 billion annually with a market capitalization surpassing $16 billion compared to Forrester's approximately $185 million valuation and sub-$500 million revenue profile. Forrester competes within the "FIG" triumvirate alongside IDC (International Data Corporation), which specializes in quantitative market data and sizing, though each firm has developed differentiated positioning with Forrester emphasizing customer experience expertise, IDC focusing on data-driven market intelligence, and Gartner providing comprehensive technology advisory services at enterprise scale. The competitive landscape extends beyond traditional research firms to include management consulting giants such as McKinsey & Company, Boston Consulting Group, Bain & Company, Deloitte, and Accenture, which offer strategic advisory services that overlap with Forrester's consulting segment though typically at higher price points and with broader operational implementation capabilities.
Forrester's competitive differentiation centers on its customer obsession philosophy, which emphasizes helping organizations develop customer-centric strategies that drive growth, positioning the firm as particularly strong in customer experience, digital transformation, and B2C marketing domains where understanding consumer behavior provides actionable strategic advantage. The Forrester Wave methodology serves as the firm's flagship vendor evaluation tool, analogous to Gartner's Magic Quadrant, evaluating technology providers across Current Offering, Strategy, and Market Presence dimensions through transparent, data-driven analysis that has established credibility over more than 20 years of publication history. Market entry barriers for new competitors include the substantial investment required to build analyst expertise across diverse technology domains, establish client relationships with enterprise decision-makers, and develop credibility through consistent delivery of accurate predictions and actionable insights.
The three-to-five year market outlook presents both opportunities and challenges, with accelerating AI adoption creating demand for research guidance while simultaneously threatening traditional research business models through generative AI capabilities that may commoditize information synthesis and reduce willingness-to-pay for subscription research services. Forrester's management has acknowledged this dynamic, positioning the firm as "the leading AI research company" by combining extensive coverage of AI topics with proprietary AI tools like Izola to serve clients, though execution of this positioning remains uncertain given competitive pressures from well-funded technology platforms and larger research competitors.
PRODUCT PORTFOLIO & INNOVATION
Forrester has developed a comprehensive product and service portfolio spanning research subscriptions, consulting engagements, and professional events, with the Forrester Decisions platform representing the core delivery mechanism for subscription research services following the three-year migration completed in 2024. The Forrester Decisions portfolio addresses functional needs across technology, customer experience (CX), data, AI & analytics, digital, marketing, sales, and product leadership roles, providing strategic insights through continuous guidance models that combine published research with analyst advisory access and peer community engagement. The platform transformation represents management's strategic response to evolving client expectations for role-based, actionable guidance rather than traditional discrete research reports, though the migration process contributed to contract value attrition as some clients declined renewal during product transitions.
Five Distinctive Product Features Differentiating Forrester from Competitors:
First, the Forrester Wave evaluation methodology provides transparent, objective vendor assessments across hundreds of technology and service categories, with recent December 2024 enhancements introducing interactive experiences enabling clients to shortlist vendors, conduct side-by-side comparisons, and filter results based on specific organizational needs rather than relying solely on static graphic representations. Second, Izola represents Forrester's proprietary generative AI tool launched in October 2023, enabling clients to query hundreds of thousands of pages of research through natural language conversation and receive synthesized answers grounded in vetted Forrester analysis rather than potentially hallucinated responses from general-purpose AI systems—positioning the firm among the first major research organizations to bring client-facing generative AI capabilities to market. Third, the SiriusDecisions methodology integration provides B2B organizations with operational frameworks including the Demand Waterfall model for lead-to-revenue funnel optimization, sales and marketing alignment best practices, and continuous improvement methodologies that complement Forrester's strategic advisory capabilities with tactical execution guidance.
Fourth, Forrester's data foundation encompasses annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide, combined with more than 100 million real-time feedback votes through FeedbackNow acquisition, providing primary research depth that differentiates insights from competitors relying more heavily on secondary source synthesis. Fifth, the Forrester Consulting organization delivers custom research and advisory engagements that apply proprietary frameworks to specific client challenges, including technology roadmapping, customer experience assessments, and market opportunity analysis that generate higher-margin professional services revenue while deepening client relationships beyond subscription transactions.
The innovation pipeline continues through AI capability expansion, with Forrester AI Access launched as a self-service offering in late 2025 extending generative AI capabilities to broader client segments. Research coverage spans emerging technologies with annual predictions reports, Hype Cycle-style assessments of technology maturity, and Planning Guides that help budget decision-makers allocate technology investments effectively.
TECHNICAL ARCHITECTURE & SECURITY
Forrester operates a digital client experience platform that delivers research, analytics, and advisory services through web-based interfaces complemented by the Izola conversational AI capability built using open-source technologies according to company disclosures. The technology stack supporting client-facing delivery includes proprietary research management systems, client relationship management infrastructure, and analytics capabilities that track content consumption patterns and engagement metrics to inform analyst coverage priorities and sales team client management activities. Izola was developed in-house by Forrester's product and technology teams, scanning hundreds of thousands of pages of research and blog content to generate synthesized answers in everyday language with source citations enabling deeper exploration of underlying analysis.
The platform architecture emphasizes integration capabilities, with enhanced Wave evaluation tools enabling clients to filter vendor assessments according to organizational needs and export comparison data for internal decision-making processes. Security considerations reflect the confidential nature of client relationships and proprietary research content, though specific certifications and attestations were not prominently disclosed in public documentation and should be verified through due diligence for enterprise procurement processes requiring SOC 2, ISO 27001, or other compliance validations. The Forrester Decisions platform migration represents significant technology infrastructure investment, transitioning clients from legacy product delivery mechanisms to unified role-based experiences that consolidate research access, analyst interactions, and peer community engagement.
Technical talent composition includes analysts with deep domain expertise across technology, customer experience, marketing, and business strategy disciplines, though recent workforce reductions have raised questions about research coverage breadth and analyst bench depth following the 6% headcount reduction announced in January 2025. The company emphasizes hybrid work models that provide flexibility for knowledge workers while maintaining collaboration through periodic in-office presence, a policy that has evolved through multiple iterations since 2022 according to employee reviews.
PRICING STRATEGY & UNIT ECONOMICS
Forrester operates a subscription-based business model where contract value (CV) serves as the primary metric for measuring recurring revenue health, with total CV reported at $288.1 million as of Q3 2025 representing a 7% year-over-year decline that reflects ongoing retention challenges despite completion of the Forrester Decisions platform migration. Subscription pricing varies based on the scope of research access, analyst advisory entitlements, event participation rights, and number of authorized users, with Forrester Decisions services priced according to role-based value delivery rather than content volume consumption, though specific price points are not publicly disclosed consistent with enterprise software industry practices. The company also generates revenue through consulting engagements priced on project scope and professional day rates, as well as event sponsorships and attendee registrations that provide concentrated revenue recognition around flagship conference dates.
Customer acquisition costs reflect enterprise sales cycle dynamics requiring relationship development with senior technology, marketing, and business strategy decision-makers, with Forrester's sales organization focused on both new client acquisition and existing client expansion through additional seat licenses and product upselling. The SiriusDecisions acquisition was expected to contribute approximately $100 million in annual revenue and $0.10-$0.20 in earnings per share accretion, validating management's view that operational methodology content would provide cross-selling opportunities into Forrester's existing client base while extending strategic research capabilities to SiriusDecisions customers. Recent financial performance indicates full-year 2024 revenues of approximately $432 million, down from peak levels, with adjusted operating margins guided to 7.5-9% for 2025 reflecting cost reduction initiatives including restructuring charges of $1.4-1.9 million.
Employee compensation and talent acquisition represent significant cost structure elements, with Glassdoor reviews indicating mixed sentiment around compensation competitiveness relative to technology industry alternatives and management consulting competitors. The firm's geographic footprint across multiple international locations provides both market access advantages and cost structure complexity, with recent office consolidation efforts aimed at improving operational efficiency.
CUSTOMER SUCCESS & USER EXPERIENCE
Client testimonials and case studies emphasize Forrester's role in helping organizations develop customer-obsessed strategies, navigate digital transformation initiatives, and make informed technology vendor selections, with the firm's client roster spanning 61% of Fortune 100 companies according to corporate disclosures. The Izola generative AI tool has achieved notable adoption since launch, with more than 400 clients beta testing the capability and positive feedback driving integration into the primary digital client experience platform with enhanced interface design and improved answer quality. Research indicates that organizations with high levels of alignment across customer-facing functions—a core Forrester advocacy theme—report 2.4 times higher revenue growth and 2 times higher profitability growth than organizations with minimal alignment, providing quantifiable business case justification for research investments.
The annual events portfolio, including B2B Summit North America, CX North America, and Technology & Innovation Summit conferences, provides concentrated client engagement opportunities featuring analyst-led sessions, peer networking, and vendor exhibitions that complement ongoing research subscription relationships. Customer experience feedback mechanisms include rating tools within Izola enabling in-the-moment assessment of answer quality, client advisory boards providing strategic input on research priorities, and account management relationships facilitating ongoing dialogue about client business challenges and research needs. The 2024 B2B Return on Integration (ROI) Awards recognized client organizations including Verizon Business, HCLTech, and others that successfully implemented Forrester frameworks and methodologies to drive business results, providing social proof of research application effectiveness.
Employee experience metrics present more mixed signals, with Glassdoor ratings indicating challenges around business outlook confidence, layoff concerns, and compensation satisfaction following multiple restructuring cycles since 2022. Only 17% of employees reported positive business outlook according to Glassdoor data, reflecting uncertainty about strategic direction and growth trajectory that may impact talent retention and research quality sustainability.
ECONOMIC SCENARIO ANALYSIS & FORECAST
Base Case (50% Probability): Under base case assumptions reflecting stabilization of contract value metrics following completion of the Forrester Decisions migration, modest economic growth supporting technology spending, and successful execution of management's three strategic priorities (increasing retention rates, driving growth across existing and new accounts, and enhancing events as CV growth platforms), Forrester should achieve revenue stabilization in 2025 with potential return to low single-digit growth by 2026-2027. Contract value may begin recovering toward flat year-over-year comparisons by late 2025 as the disruption from product migration anniversaries and new selling motions gain traction. Base case valuation suggests enterprise value maintenance in the $175-225 million range, with upside potential if AI capabilities drive differentiation and renewal rates improve above 85%.
Optimistic Scenario (20% Probability): Under optimistic assumptions including accelerated enterprise demand for AI research guidance, successful commercialization of Izola as a competitive differentiator that increases perceived value of Forrester subscriptions, improved sales execution driving new client acquisition, and potential strategic interest from larger professional services firms seeking research capabilities, Forrester could return to mid-single-digit revenue growth with contract value expansion resuming. The firm's unique positioning at the intersection of customer experience expertise and AI research coverage could attract acquisition interest from consulting firms like Accenture, IBM Consulting, or even larger research competitor Gartner seeking to consolidate market share, potentially commanding premium valuations in the 2-3x revenue range representing enterprise value of $800 million to $1.2 billion.
Pessimistic Scenario (30% Probability): Under pessimistic assumptions including continued contract value erosion driven by competitive displacement, economic downturn reducing enterprise technology research budgets, generative AI commoditization undermining willingness-to-pay for subscription research, and talent attrition degrading research quality, Forrester faces risk of accelerating revenue decline that could require additional restructuring and potentially threaten business model viability as a standalone public company. Prolonged retention rate challenges below 80%, continued workforce reductions impacting analyst coverage, and investor patience exhaustion could drive stock price toward distressed levels potentially triggering going-private transactions at substantial discounts to historical valuations. The 2025 goodwill impairment charge of $83.9 million already recognized signals management acknowledgment of reduced business value expectations.
BOTTOM LINE
Forrester Research, Inc. represents a complex investment thesis characterized by legitimate brand heritage and market positioning offset by significant transformation execution risk and structural competitive disadvantages relative to industry leader Gartner that commands approximately 90 times greater market capitalization despite operating in the same industry segment. The firm is best suited for organizations requiring customer experience-focused research guidance, B2B marketing and sales operational frameworks inherited from SiriusDecisions, and technology vendor evaluations through the respected Forrester Wave methodology, particularly where relationships with specific analysts provide differentiated value beyond published research content. Investors should approach Forrester with patience and modest return expectations given the challenging transition period, recognizing that successful execution of management's strategic priorities could deliver meaningful upside from current depressed valuations while acknowledging elevated downside risk if contract value declines persist beyond 2025 guidance periods. Organizations evaluating research and advisory firm relationships should consider Forrester as a complement to rather than replacement for Gartner coverage given the scale differential, though Forrester's customer obsession philosophy and AI research capabilities may provide differentiated perspectives valuable for digital transformation and customer experience initiatives where the firm maintains strongest positioning.
Report prepared using GIDEON Fourester Analytical Framework incorporating 277 strategic questions across 10 analytical dimensions with dual-source validation methodology.