FORRESTER RESEARCH, INC.
For the period ended Sep 30, 2025. Filed Nov 10, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 10, 2025
FORR$8.83+1.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0000950170-25-102448
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-10.
0001193125-25-274219
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 77 previous paragraphs and 86 current paragraphs.
38 unchanged; 34 reworded; 12 added; 5 removed; 0 previous and 2 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (12)
Current report
Three and Nine Months Ended September 30, 2025 and 2024
Current report
Events revenues decreased 92% and 34% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three months ended September 30, 2025 was primarily due to us holding one of our larger U.S. events in the fourth quarter of 2025 compared to the third quarter of 2024. The decrease in revenues during the nine months ended September 30, 2025 was also due to a decrease in sponsorship revenues for the events held during the period.
Current report
General and administrative expenses decreased 21% during the three months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to a $2.0 million decrease in compensation and benefit costs due to a decrease in headcount.
Current report
Loss from Sale of Divested Operation
Current report
Loss from sale of divested operation of $1.8 million was attributable to the sale of our FeedbackNow product line in August 2024.
Current report
Credit Loss Expense on Note Receivable
Current report
Event segment revenues decreased 92% and 34% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three months ended September 30, 2025 was primarily due to us holding one of our larger U.S. events in the fourth quarter of 2025 compared to the third quarter of 2024. The decrease in revenues during the nine months ended September 30, 2025 was also due to a decrease in sponsorship revenues for the events held during the period.
Current report
Event segment expenses decreased 45% and 10% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods due primarily to the move of a U.S. event that occurred in the third quarter of 2024 to the fourth quarter of 2025.
Current report
On April 11, 2025, we entered into a third amendment of our lease, and a new lease, for our principal headquarters located in Cambridge, Massachusetts. The effect of these agreements was to early terminate the original lease with respect to the first, second and third floors of the facility on or before May 31, 2026, while also extending the lease term with respect to the fourth, fifth and six floors of the facility through June 30, 2039. As a result of reducing the number of floors that we will occupy, we intend to renovate floors four to six and currently expect to incur capital expenditures of approximately $33.0 million, of which $6.0 million is expected to be incurred during the fourth quarter of 2025 and the remainder will be incurred in the first half of 2026. Under the terms of the lease agreement, the landlord is providing a tenant improvement allowance of $17.2 million, of which $0.3 million is expected to be received in the fourth quarter of 2025 and the remainder in the first half of 2026. Future cash receipts for the tenant improvement allowance will be classified as operating cash flows in the cash flow statement.
Current report
Allowance for Credit Losses on Note Receivable
Current report
As part of the proceeds from the sale of a non-core product line in August 2024, we received a note receivable with an original face value of $9.0 million. We measure the note receivable on an amortized cost basis and record an estimate of any expected credit losses on the note receivable as an allowance for credit losses each reporting period. The allowance represents our best estimate of credit losses over the contractual life of the note and is calculated using the loss given default method. This method involves estimating the likelihood that the borrower will default on its obligations and the expected losses from such default. Our estimates under the loss given default method reflect the borrower’s liquidity position and our judgments about their risk of default and expected financial performance as of the balance sheet date.
Current report
The allowance for credit losses is reported as a valuation account on the balance sheet that is deducted from the note receivable’s amortized cost basis and is included in credit loss expense on note receivable in the Consolidated Statement of Operations. As of September 30, 2025, the balance of the note receivable, inclusive of capitalized interest at the stated rate of 8%, is $9.9 million. The carrying value of the note, net of the cumulative allowance for credit losses, is $2.6 million. We will update our assessment of expected credit loss each quarter and if the borrower’s financial condition worsens in the future, we could be required to record an additional allowance for credit loss. If any amount of the note is determined by the Company to be uncollectible due to the borrower’s failure to meet repayment terms or due to the borrower's deteriorating financial condition, the write-off amount, reduced by any previously recorded allowances, would also be recorded as a credit loss expense on note receivable. Alternatively, if the borrower’s financial condition improves, we could be required to reverse all or a portion of the previously recorded allowance for credit loss.
Removed paragraphs (5)
Previous report
Three and Six Months Ended June 30, 2025 and 2024
Previous report
Events revenues decreased 23% and 25% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2025 was due primarily to a decrease in sponsorship revenues.
Previous report
General and administrative expenses decreased 7% during the six months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $1.5 million decrease in compensation and benefit costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs and (2) a $0.4 million decrease in non-income taxes.
Previous report
Event segment revenues decreased 23% and 25% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. The decrease in revenues was due primarily to a decrease in sponsorship revenues.
Previous report
Event segment expenses were consistent during the three and six months ended June 30, 2025, respectively, compared to the prior year periods.
Reworded paragraphs (34)
Previous wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. Reference is made in particular to our statements about changing stakeholder expectations, migration of our clients into our Forrester Decisions products, product development, possible acquisitions, future dividends, future share repurchases, future growth rates, operating income and cash from operations, future deferred revenue, future compliance with financial covenants under our credit facility, future interest expense, anticipated increases in, and productivity of, our sales force and headcount, the adequacy of our cash, and cash flows to satisfy our working capital and capital expenditures, the anticipated impact of accounting standards, and any future impairment charge we incur. These statements are based on our current plans and expectations and involve risks and uncertainties. Important factors that could cause actual future activities and results to differ include, among others, our ability to retain and enrich subscriptions to, and licenses of, our Research products and services, our ability to fulfill existing or generate new consulting engagements and advisory services, any adverse economic conditions, including from trade policies and tariffs, that result in a reduction in technology spending or demand for our products and services, our international operations expose us to a variety of operational risks which could negatively impact us, our ability to offer new products and services, the use of Generative AI in our business and by our clients and competitors, our dependence on key personnel, our ability to attract and retain qualified professional staff, our ability to respond to business and economic conditions and market trends, our business with the U.S. Government, the impact of our outstanding debt, competition and industry consolidation, possible variations in our quarterly operating results, concentration of our stock ownership, the possibility of network disruptions and security breaches, our ability to enforce and protect our intellectual property rights, compliance with privacy laws, taxation risks, any weakness identified in our system of internal controls, and any future impairment charge we incur. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, 2024 and in this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Current wording
This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “believes,” “anticipates,” “intends,” “plans,” “estimates,” or similar expressions are intended to identify these forward-looking statements. Reference is made in particular to our statements about changing stakeholder expectations, migration of our clients into our Forrester Decisions products, product development, possible acquisitions, future dividends, future share repurchases, future growth rates, operating income and cash from operations, future deferred revenue, future compliance with financial covenants under our credit facility, future interest expense, anticipated increases in, and productivity of, our sales force and headcount, anticipated capital expenditures in connection with the lease for our principal headquarters and related tenant improvement allowance, the adequacy of our cash, and cash flows to satisfy our working capital and capital expenditures, the anticipated impact of accounting standards, and any future impairment charge we incur. These statements are based on our current plans and expectations and involve risks and uncertainties. Important factors that could cause actual future activities and results to differ include, among others, our ability to retain and enrich subscriptions to, and licenses of, our Research products and services, our ability to fulfill existing or generate new consulting engagements and advisory services, any adverse economic conditions, including from trade policies and tariffs, that result in a reduction in technology spending or demand for our products and services, our international operations expose us to a variety of operational risks which could negatively impact us, our ability to offer new products and services, the use of Generative AI in our business and by our clients and competitors, our dependence on key personnel, our ability to attract and retain qualified professional staff, our ability to respond to business and economic conditions and market trends, our business with the U.S. Government, the impact of our outstanding debt, competition and industry consolidation, possible variations in our quarterly operating results, the actual cost of capital expenditures that we undertake, concentration of our stock ownership, the possibility of network disruptions and security breaches, our ability to enforce and protect our intellectual property rights, compliance with privacy laws, taxation risks, any weakness identified in our system of internal controls, and any future impairment charge we incur. These risks are described more completely in our Annual Report on Form 10-K for the year ended December 31, 2024 and in this Quarterly Report on Form 10-Q. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.
Previous wording
Our key metrics focus on our contract value ("CV") products. We are focusing on CV products as these products are our most profitable products and historically our contracts for CV products have renewed at high rates (as measured by our client retention and wallet retention metrics). Our CV products make up essentially all of our research revenues, and research revenues as a percentage of total revenues increased from approximately 72% for the six months ended June 30, 2024 to approximately 73% for the six months ended June 30, 2025.
Current wording
Our key metrics focus on our contract value ("CV") products. We are focusing on CV products as these products are our most profitable products and historically our contracts for CV products have renewed at high rates (as measured by our client retention and wallet retention metrics). Our CV products make up essentially all of our research revenues, and research revenues as a percentage of total revenues increased from approximately 73% for the nine months ended September 30, 2024 to approximately 74% for the nine months ended September 30, 2025.
Previous wording
We calculate CV at the foreign currency rates used for internal planning purposes each year. For comparative purposes, we have recast historical CV and wallet retention at the planned 2025 foreign currency rates. In addition, due to the divestiture of the FeedbackNow product line in the third quarter of 2024, we have recast our historical metrics to exclude FeedbackNow products and clients. In addition, the recast metrics reflect the correction of an insignificant error. We have included the recast metrics below for the six months ended June 30, 2024, and we have also provided recast metrics dating back to the second quarter of 2023, on the investor relations section of our website.
Current wording
We calculate CV at the foreign currency rates used for internal planning purposes each year. For comparative purposes, we have recast historical CV and wallet retention at the planned 2025 foreign currency rates. In addition, the recast metrics reflect the correction of an insignificant error. We have included the recast metrics below for the nine months ended September 30, 2024, and we have also provided recast metrics dating back to the third quarter of 2023, on the investor relations section of our website.
Previous wording
Contract value at June 30, 2025 decreased by 7% compared to the prior year period due to wallet retention being at 85% for the period (representing retention and enrichment of the prior year CV base) and new client acquisition not fully offsetting the net retention loss. Client retention increased by 2 percentage points at June 30, 2025 compared to the prior year period, and increased by 1 percentage point compared to the prior quarter. However, wallet retention decreased by 3 percentage points at June 30, 2025 compared to the prior year period, and decreased by 1 percentage point compared to the prior quarter. The decline in wallet retention was primarily due to lower enrichment of contracts as they renewed during the periods.
Current wording
Contract value at September 30, 2025 decreased by 7% compared to the prior year period due to wallet retention being at 86% for the period (representing retention and enrichment of the prior year CV base) and new client acquisition not fully offsetting the net retention loss. Client retention increased by 1 percentage point at September 30, 2025 compared to the prior year period, and was consistent compared to the prior quarter. However, wallet retention decreased by 2 percentage points at September 30, 2025 compared to the prior year period, and increased by 1 percentage point compared to the prior quarter. The decline in wallet retention compared to the prior year period was primarily due to lower enrichment of contracts as they renewed during the current year period.
Previous wording
Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including but not limited to, those related to our revenue recognition, goodwill, intangible and other long-lived assets, and income taxes. Management bases its estimates on historical experience, data available at the time the estimates are made, and various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
Management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including but not limited to, those related to our revenue recognition, credit losses on the note receivable, goodwill, intangible and other long-lived assets, and income taxes. Management bases its estimates on historical experience, data available at the time the estimates are made, and various assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Our critical accounting estimates are described in our Annual Report on Form 10-K for the year ended December 31, 2024 and in this Quarterly Report on Form 10-Q.
Previous wording
Research revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally 12 or 24-month periods. Research revenues decreased 7% and 9% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods, primarily due to the decrease in CV, as discussed above, and the divestiture of the FeedbackNow product line in the third quarter of 2024, which resulted in an approximate 2% decline in revenue in both periods. From a product perspective, the decrease in revenues during the three months ended June 30, 2025 was primarily due a decline in revenue from subscriptions to our research and to the effect of the divestiture of the FeedbackNow product line. The decrease in revenues during the six months ended June 30, 2025 was primarily due to the same factors as during the three month period, as well as a decline in reprint revenue. Research subscription products, including our subscription reprint product that was launched in the third quarter of 2024, declined 3% and 5% during the three and six months ended June 30, 2025, respectively, primarily due to revenue growth from our Forrester Decisions and subscription reprint products being offset by revenue declines from our heritage research products.
Current wording
Research revenues are recognized as revenue primarily on a ratable basis over the term of the contracts, which are generally 12 or 24-month periods. Research revenues decreased 6% and 8% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods, primarily due to the decrease in CV, as discussed above, and the divestiture of the FeedbackNow product line in the third quarter of 2024, which resulted in an approximate 2% decline in revenue in both periods. From a product perspective, the decrease in revenues during both the three and nine months ended September 30, 2025 was primarily due to a decline in revenue from subscriptions to our research and to the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in reprint revenue. Research subscription products, including our subscription reprint product that was launched in the third quarter of 2024, declined 5% during both the three and nine months ended September 30, 2025 primarily due to revenue growth from our Forrester Decisions and subscription reprint products being offset by revenue declines from our heritage research products.
Previous wording
Consulting segment revenues decreased 8% and 10% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2025 was primarily due to a decrease in delivery of consulting services due to lower client bookings.
Current wording
Consulting revenues decreased 8% and 7% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three and nine months ended September 30, 2025 was due to a decrease in delivery of consulting services due to lower client bookings.
Previous wording
Cost of services and fulfillment expenses decreased 3% during the three months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $1.1 million decrease in professional services costs primarily due to a decrease in billable fees and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs and (2) a $0.8 million decrease in facilities costs due to a decrease in lease expense.
Current wording
Cost of services and fulfillment expenses decreased 11% during the three months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $1.5 million decrease in compensation and benefit costs due to a decrease in headcount, (2) a $1.3 million decrease in professional services costs primarily due to a decrease in billable fees and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs, (3) a $1.1 million decrease in event expenses primarily due to holding one of our larger U.S. events in the fourth quarter of 2025 compared to the third quarter of 2024, and (4) a $0.7 million decrease in facilities costs primarily due to a decrease in lease expense.
Previous wording
Cost of services and fulfillment expenses decreased 7% during the six months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $3.1 million decrease in compensation and benefit costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs, (2) a $2.5 million decrease in professional services costs primarily due to a decrease in billable fees, consulting fees, and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs and (3) a $1.0 million decrease in facilities costs due to a decrease in lease expense.
Current wording
Cost of services and fulfillment expenses decreased 8% during the nine months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $4.6 million decrease in compensation and benefit costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs, (2) a $3.8 million decrease in professional services costs primarily due to a decrease in billable fees, consulting fees, and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs, (3) a $1.5 million decrease in facilities costs primarily due to a decrease in lease expense and (4) a $1.1 million decrease in event expenses as discussed for the three month period.
Previous wording
Selling and marketing expenses decreased 7% during the three months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $2.3 million decrease in compensation and benefit costs due to a decrease in headcount and commissions expense, partially offset by an increase in incentive bonus costs and (2) a $0.6 million decrease in professional services costs primarily due to a decrease in consulting fees. These decreases were partially offset by a $0.5 million increase in travel and entertainment expenses.
Current wording
Selling and marketing expenses decreased 6% during the three months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $1.8 million decrease in compensation and benefit costs due to a decrease in headcount and (2) a $0.6 million decrease in facilities costs primarily due to a decrease in lease expense.
Previous wording
Selling and marketing expenses decreased 8% during the six months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $4.9 million decrease in compensation and benefit costs due to a decrease in headcount and commissions expense, partially offset by an increase in incentive bonus costs, (2) a $0.8 million decrease in professional services costs primarily due to a decrease in consulting fees and advertising costs and (3) a $0.7 million decrease in stock compensation expense. These decreases were partially offset by a $0.6 million increase in travel and entertainment expenses.
Current wording
Selling and marketing expenses decreased 8% during the nine months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $6.6 million decrease in compensation and benefit costs due to a decrease in headcount and commissions expense, partially offset by an increase in incentive bonus costs, (2) a $1.0 million decrease in professional services costs primarily due to a decrease in consulting fees, (3) a $0.9 million decrease in facilities costs primarily due to a decrease in lease expense and (4) a $0.8 million decrease in stock compensation expense. These decreases were partially offset by a $0.9 million increase in travel and entertainment expenses.
Previous wording
General and administrative expenses decreased 7% during the three months ended June 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $0.3 million decrease in compensation and benefit costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs and (2) a $0.3 million decrease in non-income taxes.
Current wording
General and administrative expenses decreased 12% during the nine months ended September 30, 2025 compared to the prior year period. The decrease was primarily due to (1) a $3.5 million decrease in compensation and benefit costs due to a decrease in headcount, partially offset by an increase in incentive bonus costs, (2) a $0.6 million decrease in software costs and (3) a $0.5 million decrease in non-income taxes.
Previous wording
The fluctuation for depreciation expense was immaterial during the three months ended June 30, 2025 compared to the prior year period. Depreciation expense decreased by $1.0 million during the six months ended June 30, 2025 compared to the prior year period due to certain software assets becoming fully depreciated.
Current wording
The fluctuation for depreciation expense was immaterial during the three months ended September 30, 2025 compared to the prior year period. Depreciation expense decreased by $1.4 million during the nine months ended September 30, 2025 compared to the prior year period due to certain software assets becoming fully depreciated.
Previous wording
The fluctuation for amortization expense was immaterial during the three months ended June 30, 2025 compared to the prior year period. Amortization expense decreased by $0.6 million during the six months ended June 30, 2025 compared to the prior year period primarily due to the divestiture of the FeedbackNow product line.
Current wording
The fluctuation for amortization expense was immaterial during the three months ended September 30, 2025 compared to the prior year period. Amortization expense decreased by $0.8 million during the nine months ended September 30, 2025 compared to the prior year period primarily due to the divestiture of the FeedbackNow product line.
Previous wording
The income approach was based upon projected future cash flows that were discounted to present value. The key underlying assumptions included forecasted revenues, gross profit and operating expenses, terminal growth rate, as well as an applicable discount rate for each reporting unit. The key assumptions in the market approach were the earnings multiple and market participant acquisition premium. Fair value estimates are based on a complex series of judgments about future events and rely heavily on estimates and assumptions that we deemed to be reasonable. Changes in the estimates or assumptions used in the quantitative impairment test could materially affect the determination of fair value of our reporting units and the associated goodwill impairment assessment. Potential events and circumstances that could have an adverse impact on our estimates and assumptions include, but are not limited to, lower than expected bookings growth, increases in costs, and other macroeconomic factors.
Current wording
The income approach was based upon projected future cash flows that were discounted to present value. The key underlying assumptions included forecasted revenues, operating expenses, terminal rate, as well as an applicable discount rate for each reporting unit. The key assumptions in the market approach were the earnings multiple and market participant acquisition premium. Fair value estimates are based on a complex series of judgments about future events and rely heavily on estimates and assumptions that we deemed to be reasonable. Changes in the estimates or assumptions used in the quantitative impairment test could materially affect the determination of fair value of our reporting units and the associated goodwill impairment assessment. Potential events and circumstances that could have an adverse impact on our estimates and assumptions include, but are not limited to, lower than expected bookings growth, increases in costs, and other macroeconomic factors.
Previous wording
We concluded that a triggering event did not occur during the three months ended June 30, 2025 and as such, a quantitative impairment test of goodwill was not required during the period. We will continue to monitor relevant facts and circumstances, including future changes in our stock price. We may be required to record additional goodwill impairment charges. While we cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on our results of operations and financial condition.
Current wording
We concluded that a triggering event did not occur during the three months ended June 30, 2025 and September 30, 2025 and as such, a quantitative impairment test of goodwill was not required during either period. We will continue to monitor relevant facts and circumstances, including future changes in our stock price. We may be required to record additional goodwill impairment charges. While we cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on our results of operations and financial condition.
Previous wording
In January 2025, we implemented a reduction in our workforce of approximately 6% across various geographies and functions to better align our cost structure with the revenue outlook for the year. We recorded $4.2 million of severance and related costs for this action during the fourth quarter of 2024, $1.5 million during the first quarter of 2025, and $0.4 million during the second quarter of 2025.
Current wording
In January 2025, we implemented a reduction in our workforce of approximately 6% across various geographies and functions to better align our cost structure with the revenue outlook for the year. We recorded $4.2 million of severance and related costs for this action during the fourth quarter of 2024, $1.5 million during the first quarter of 2025, $0.4 million during the second quarter of 2025, and $(0.1) million during the third quarter of 2025.
Previous wording
Interest expense consists of interest on our borrowings. The fluctuation in interest expense was immaterial during the three and six months ended June 30, 2025 compared to the prior year periods.
Current wording
Interest expense consists of interest on our borrowings. The fluctuation in interest expense was immaterial during the three and nine months ended September 30, 2025 compared to the prior year periods.
Previous wording
Loss on investments, net consists of an allowance for credit losses on a note receivable from the divestiture of FeedbackNow and our share of equity method investment losses from our technology-related investment funds. Loss on investments, net increased by $1.0 million during the six months ended June 30, 2025 compared to the prior year period due primarily to an increase in the allowance for credit losses on the note receivable.
Current wording
Loss on investments, net primarily represents our share of equity method investment gains and losses from our technology-related investment funds. The fluctuation for loss on investments, net was immaterial during the three and nine months ended September 30, 2025 compared to the prior year periods.
Previous wording
Other income, net primarily consists of interest income, gains and losses on foreign currency, and gains and losses on foreign currency forward contracts. The fluctuation in other income, net was immaterial during the three months ended June 30, 2025 compared to the prior year period. Other income, net decreased by $0.5 million during the six months ended June 30, 2025 compared to the prior year period primarily due to an increase in foreign currency losses.
Current wording
Other income, net primarily consists of interest income, gains and losses on foreign currency, and gains and losses on foreign currency forward contracts. Other income, net increased by $0.5 million during the three months ended September 30, 2025 compared to the prior year period primarily due to a decrease in foreign currency losses. The fluctuation in other income, net was immaterial during the nine months ended September 30, 2025 compared to the prior year period.
Previous wording
The decrease in the effective tax rate during the six months ended June 30, 2025 compared to the prior year period is primarily due to the goodwill impairment charge, which is not deductible for tax purposes. For the full year 2025, we anticipate that our effective tax rate will be in the range of negative 5% to 8%.
Current wording
The decrease in the effective tax rate during the nine months ended September 30, 2025 compared to the prior year period is primarily due to the goodwill impairment charge, which is not deductible for tax purposes, in addition to transactions in 2024 that increased our tax expense and effective tax rate, including the divestiture of the FeedbackNow product line, foreign withholding taxes due to the dissolution of a foreign subsidiary, and a valuation allowance recorded against non-realizable state net operating loss carryforwards due to the dissolution of a domestic subsidiary. For the full year 2025, we anticipate that our effective tax rate will be in the range of negative 2% to 5%.
Previous wording
The Events segment includes the revenues and the costs of the organization responsible for developing and hosting our events. As of January 1, 2025, we realigned our events sponsorship sales team and as such the costs of this team are no longer reported as a direct expense of the Events segment in the table below. Prior period amounts have been recast to conform to the current presentation.
Current wording
The Events segment includes the revenues and the costs of the organization responsible for developing and hosting our events. As of January 1, 2025, the Company realigned its events sponsorship sales team and as such the costs of this team were not reported as a direct expense of the Events segment during the first and second quarters of 2025. During the third quarter of 2025, the events sponsorship sales team was aligned back to Events and the costs of this team are now being reported as a direct expense of the Events segment. The nine months ended September 30, 2025 have been conformed to the current presentation for the entire period.
Previous wording
We evaluate reportable segment performance and allocate resources based on segment operating income (loss). Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, goodwill impairment, restructuring costs, interest expense, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.
Current wording
We evaluate reportable segment performance and allocate resources based on segment operating income (loss). Segment expenses include the direct expenses of each segment organization and exclude selling and marketing expenses, general and administrative expenses, stock-based compensation expense, depreciation expense, adjustments to incentive bonus compensation from target amounts, amortization of intangible assets, goodwill impairment, restructuring costs, loss from sale of divested operation, interest expense, credit loss expense on note receivable, other income, and losses on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements.
Previous wording
Research segment revenues decreased 6% and 8% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. For the three and six months ended June 30, 2025, research product revenues within this segment decreased 7% and 9%, respectively, primarily due to the decrease in CV, as discussed above, as well as due to the divestiture of the FeedbackNow product line in the third quarter of 2024. For the three and six months ended June 30, 2025, consulting product revenues within this segment increased 5% and 7%, respectively, primarily due to increased delivery of consulting services by our research analysts.
Current wording
Research segment revenues decreased 4% and 7% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. For the three and nine months ended September 30, 2025, research product revenues within this segment decreased 6% and 8%, respectively, primarily due to the decrease in CV, as discussed above, as well as due to the divestiture of the FeedbackNow product line in the third quarter of 2024, partially offset by an increase in reprint revenue. For the three and nine months ended September 30, 2025, consulting product revenues within this segment increased 27% and 13%, respectively, primarily due to increased delivery of advisory services by our research analysts.
Previous wording
Research segment expenses decreased 14% and 16% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. The decrease in expenses during the three months ended June 30, 2025 was primarily due to (1) a $2.5 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $1.5 million decrease in professional services due to the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs. The decrease in expenses during the six months ended June 30, 2025 was primarily due to (1) a $7.2 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $2.4 million decrease in professional services due to a decrease in consulting fees and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs.
Current wording
Research segment expenses decreased 10% and 14% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in expenses during the three months ended September 30, 2025 was primarily due to (1) a $1.4 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $1.1 million decrease in professional services due to the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs. The decrease in expenses during the nine months ended September 30, 2025 was primarily due to (1) a $8.6 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $3.5 million decrease in professional services due to a decrease in consulting fees and the effect of the divestiture of the FeedbackNow product line, partially offset by an increase in contractor costs.
Previous wording
Consulting revenues decreased 5% and 6% during the three and six months ended June 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three and six months ended June 30, 2025 was due to a decrease in delivery of consulting services due to lower client bookings.
Current wording
Consulting segment revenues decreased 16% and 12% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in revenues during the three and nine months ended September 30, 2025 was due to a decrease in delivery of consulting services due to lower client bookings.
Previous wording
Consulting segment expenses were consistent during the three months ended June 30, 2025 compared to the prior year period, as a $0.6 million increase in contractor costs was offset by decreases in compensation and benefit costs and billable fees. Consulting segment expenses decreased 9% during the six months ended June 30, 2025 compared to the prior year period. The decrease in expenses during the six months ended June 30, 2025 was primarily due to (1) a $1.7 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $1.0 million decrease in billable fees. These decreases were partially offset by a $0.7 million increase in contractor costs.
Current wording
Consulting segment expenses decreased 7% and 8% during the three and nine months ended September 30, 2025, respectively, compared to the prior year periods. The decrease in expenses during the three months ended September 30, 2025 was primarily due to (1) a $0.7 million decrease in billable fees and (2) a $0.5 million decrease in compensation and benefit costs primarily due to a decrease in headcount. These decreases were partially offset by a $0.5 million increase in professional services due primarily to an increase in contractor costs. The decrease in expenses during the nine months ended September 30, 2025 was primarily due to (1) a $2.2 million decrease in compensation and benefit costs primarily due to a decrease in headcount and (2) a $1.7 million decrease in billable fees. These decreases were partially offset by a $1.1 million increase in professional services due primarily to an increase in contractor costs.
Previous wording
We have historically financed our operations primarily through funds generated from operations. Research revenues, which constituted approximately 73% of our revenues during the six months ended June 30, 2025, are generally renewable and are typically payable in advance. We generated cash from operating activities of $23.1 million during the six months ended June 30, 2025 and used cash in operating activities of $2.3 million during the six months ended June 30, 2024. The $25.4 million increase in cash from operations for the six months ended June 30, 2025 compared to the prior year period was primarily due to a $23.0 million decrease in cash used for accrued expenses resulting primarily from a decrease in the payment of year end incentive compensation during 2025 as compared to the prior year period, and the payment of a legal settlement during the prior year period.
Current wording
We have historically financed our operations primarily through funds generated from operations. Research revenues, which constituted approximately 74% of our revenues during the nine months ended September 30, 2025, are generally renewable and are typically payable in advance. We generated cash from operating activities of $24.3 million during the nine months ended September 30, 2025 and used cash in operating activities of $2.0 million during the nine months ended September 30, 2024. The $26.3 million increase in cash from operations for the nine months ended September 30, 2025 compared to the prior year period was primarily due to a $21.1 million decrease in cash used for accrued expenses resulting primarily from a decrease in the payment of year end incentive compensation during 2025 as compared to the prior year period, and the payment of a legal settlement during the prior year period.
Previous wording
During the six months ended June 30, 2025, we used cash in investing activities of $14.7 million primarily from $15.2 million in net purchases of marketable investments and $1.3 million of purchases of property and equipment, primarily consisting of computer software, partially offset by a $1.4 million distribution received from an equity method investment. During the six months ended June 30, 2024, we used cash in investing activities of $2.7 million resulting from $2.3 million of purchases of property and equipment, primarily consisting of computer software, and $0.4 million in net purchases of marketable investments.
Current wording
During the nine months ended September 30, 2025, we used cash in investing activities of $15.7 million primarily from $15.4 million in net purchases of marketable investments and $1.9 million of purchases of property and equipment, primarily consisting of computer software, partially offset by a $1.4 million distribution received from an equity method investment. During the nine months ended September 30, 2024, we generated cash from investing activities of $4.8 million primarily from $6.0 million in proceeds from the sale of the FeedbackNow product line and $1.6 million in net maturities and sales of marketable investments, partially offset by $2.7 million of purchases of property and equipment, primarily consisting of computer software.
Previous wording
During the six months ended June 30, 2025, we used $0.3 million of cash in financing activities primarily due to $0.9 million in taxes paid related to net share settlements of restricted stock units, partially offset by $0.7 million of net proceeds from the issuance of common stock under our stock-based incentive plans. We used $8.3 million of cash in financing activities during the six months ended June 30, 2024 primarily due to $8.0 million for purchases of our common stock and $1.5 million in taxes paid related to net share settlements of restricted stock units, partially offset by $1.3 million of net proceeds from the issuance of common stock under our stock-based incentive plans. As of June 30, 2025, our remaining stock repurchase authorization was approximately $80.0 million.
Current wording
$13.0 million of cash in financing activities during the nine months ended September 30, 2024 primarily due to $13.0 million for purchases of our common stock and $2.5 million in taxes paid related to net share settlements of restricted stock units, partially offset by $2.4 million of net proceeds from the issuance of common stock under our stock-based incentive plans. As of September 30, 2025, our remaining stock repurchase authorization was approximately $77.5 million.
Previous wording
Additional future contractual cash obligations extending over the next 12 months and beyond primarily consist of operating lease payments. We lease office space under non-cancelable operating lease agreements (refer to Note 6 –Leases in the Notes to Consolidated Financial Statements for additional information). The remaining duration of non-cancelable office space leases ranges from less than 1 year to 14 years. Remaining lease payments within one year, within two to three years, within four to five years, and after five years from June 30, 2025, are $5.7 million, $15.9 million, $13.2 million, and $44.2 million respectively.
Current wording
Additional future contractual cash obligations extending over the next 12 months and beyond primarily consist of operating lease payments. We lease office space under non-cancelable operating lease agreements (refer to Note 6 –Leases in the Notes to Consolidated Financial Statements for additional information). The remaining duration of non-cancelable office space leases ranges from less than 1 year to 14 years. Remaining lease payments within one year, within two to three years, within four to five years, and after five years from September 30, 2025, are $2.8 million, $15.9 million, $13.2 million, and $44.2 million respectively.
Previous wording
As of June 30, 2025, we had cash, cash equivalents, and marketable investments of $135.0 million. This balance includes $88.0 million held outside of the U.S. If the cash outside of the U.S. is needed for operations in the U.S., we would be required to accrue and pay U.S. state taxes and may be required to pay withholding taxes to foreign jurisdictions to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We believe that our current cash balance and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months and to meet our known long-term cash requirements.
Current wording
As of September 30, 2025, we had cash, cash equivalents, and marketable investments of $132.0 million. This balance includes $87.9 million held outside of the U.S. If the cash outside of the U.S. is needed for operations in the U.S., we would be required to accrue and pay U.S. state taxes and may be required to pay withholding taxes to foreign jurisdictions to repatriate these funds. However, our intent is to permanently reinvest these funds outside of the U.S. and our current plans do not demonstrate a need to repatriate these funds for our U.S. operations. We believe that our current cash balance and cash flows from operations will satisfy working capital, financing activities, and capital expenditure requirements for the next twelve months and to meet our known long-term cash requirements.
Previous wording
Refer to Note 1 –Interim Consolidated Financial Statements in the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements including the expected dates of adoption and effects on results of operations and financial condition.
Current wording
Refer to Note 1 –Interim Consolidated Financial Statements in the Notes to Consolidated Financial Statements for a full description of recent accounting pronouncements including the expected dates of adoption and effects on results of operations and financial condition. There have been no material changes to the critical accounting policies and estimates previously disclosed in that report.
Previous wording
For information regarding our critical accounting policies and estimates, please refer to Note 1, "Summary of Significant Accounting Policies" and Item 7, “Critical Accounting Estimates” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. There have been no material changes to the critical accounting policies and estimates previously disclosed in that report.
Current wording
For information regarding our critical accounting policies and estimates, please refer to Note 1, "Summary of Significant Accounting Policies" and Item 7, “Critical Accounting Estimates” contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. The critical accounting estimate below supplements the critical accounting estimates discussed in our Annual Report on Form 10-K for the year ended December 31, 2024.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Credit loss expense on note receivable consists of an allowance for credit losses on a note receivable from the divestiture of FeedbackNow during the third quarter of 2024.
Current report — wording carried from elsewhere
During the nine months ended September 30, 2025, we used $2.4 million of cash in financing activities primarily due to $2.4 million for purchases of our common stock and $1.2 million in taxes paid related to net share settlements of restricted stock units, partially offset by $1.3 million of net proceeds from the issuance of common stock under our stock-based incentive plans. We used