{"url_path":"/sec/forr/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Consolidated Financial Statements and Supplementary Data","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-03-13","source_url":"https://www.sec.gov/Archives/edgar/data/1023313/0001193125-26-105114-index.html","accession_number":"0001193125-26-105114","cik":"0001023313","ticker":"FORR","issuer_name":"FORRESTER RESEARCH, INC.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1023313/0001193125-26-105114-index.html","primary_entity_key":"0001023313","primary_entity_name":"FORRESTER RESEARCH, INC."},"word_count":17519,"has_tables":true,"body_markdown":"Item 8. Consolidated Financial Statements and Supplementary Data\n\nThe financial statements listed in the following Index to Financial Statements are filed as a part of this 2025 Annual Report on Form 10-K.\n\n \n\nFORRESTER RESEARCH, INC.\n\nINDEX TO FINANCIAL STATEMENTS\n\nPage\n\n[Report of PricewaterhouseCoopers LLP, Independent Registered Public Accounting Firm (PCAOB ID 238)](#report_independent_registered_public_acc)\n\n27\n\n[Consolidated Balance Sheets](#consolidated_balance_sheets)\n\n30\n\n[Consolidated Statements of Operations](#consolidated_statements_income)\n\n31\n\n[Consolidated Statements of Comprehensive Income (Loss)](#consolidated_statements_comprehensive_in)\n\n32\n\n[Consolidated Statements of Stockholders’ Equity](#consolidated_statements_stockholders_equ)\n\n33\n\n[Consolidated Statements of Cash Flows](#consolidated_statements_cash_flows)\n\n34\n\n[Notes to Consolidated Financial Statements](#notes_to_consolidated_financial_statemen)\n\n35\n\n \n\n \n\n26\n\n \n\nReport of Independent Registered Public Accounting Firm\n\n \n\nTo the Board of Directors and Stockholders of Forrester Research, Inc.\n\nOpinions on the Financial Statements and Internal Control over Financial Reporting\n\nWe have audited the accompanying consolidated balance sheets of Forrester Research, Inc. and its subsidiaries (the \"Company\") as of December 31, 2025 and 2024, and the related consolidated statements of operations, of comprehensive income (loss), of stockholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the \"consolidated financial statements\"). We also have audited the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).\n\nIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.\n\nBasis for Opinions\n\nThe Company's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company's internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.\n\nWe conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.\n\nOur audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.\n\nDefinition and Limitations of Internal Control over Financial Reporting\n\nA company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.\n\nBecause of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.\n\n27\n\n \n\nCritical Audit Matters\n\nThe critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.\n\nRevenue Recognition – Identification of Performance Obligations\n\nAs described in Note 1 to the consolidated financial statements, the Company generates all of its revenues from contracts with customers, which totaled $396.9 million for the year ended December 31, 2025. Performance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, management must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires management to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation.\n\nThe principal considerations for our determination that performing procedures relating to revenue recognition – identification of performance obligations is a critical audit matter is a high degree of auditor effort in performing procedures and evaluating audit evidence related to management’s identification of the performance obligations.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to the revenue recognition process, including controls over the identification of performance obligations. These procedures also included, among others, testing management’s process for identifying performance obligations within its contracts with customers and the revenue recognition impact of contractual terms and conditions for a sample of contracts.\n\nInterim and Annual Goodwill Impairment Assessments – Research Reporting Unit\n\nAs described in Notes 1 and 4 to the consolidated financial statements, the Company’s goodwill balance was $120.4 million as of December 31, 2025, and the goodwill associated with the Research reporting unit was $112.1 million. Goodwill is tested by management for impairment at the reporting unit level annually as of November 30. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred. During the first quarter of 2025, management determined a triggering event occurred, indicating goodwill may be impaired. Accordingly, management conducted a quantitative impairment test of goodwill as of March 31, 2025 for the two reporting units that have goodwill (Research and Consulting). As a result of the quantitative impairment test performed, management determined goodwill was impaired for its Research reporting unit and recorded a goodwill impairment charge of $83.9 million during the period ended March 31, 2025. Management performed the annual goodwill impairment test as of November 30, 2025 for its Research and Consulting reporting units, which resulted in an additional impairment charge of $26.8 million for its Research reporting unit. A quantitative impairment test involves comparing the fair value of a reporting unit to its carrying value. The fair value of the Research reporting unit was estimated by management using an equal weighting of an income approach and market approach. The income approach was based upon projected future cash flows that were discounted to present value. The key assumptions used in the income approach were forecasted revenues, operating expenses, terminal rate, and discount rate, and the key assumptions used in the market approach were the earnings multiple and the market participant acquisition premium.\n\nThe principal considerations for our determination that performing procedures relating to the interim and annual goodwill impairment assessments of the Research reporting unit is a critical audit matter are (i) the significant judgment by management when developing the fair value estimates of the Research reporting unit; (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to forecasted revenues, operating expenses, terminal rate, and discount rate used in the income approach and the earnings multiple and market participant acquisition premium used in the market approach; and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.\n\nAddressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s interim and annual goodwill impairment assessments, including controls over the fair value estimates of the Research reporting unit. These procedures also included, among others (i) testing management’s process for developing the fair value estimates of the\n\n28\n\n \n\nResearch reporting unit; (ii) evaluating the appropriateness of the income approach and market approach used by management; (iii) testing the completeness and accuracy of underlying data used in the income approach and market approach; and (iv) evaluating the reasonableness of the significant assumptions used by management related to forecasted revenues, operating expenses, terminal rate, and discount rate used in the income approach and the earnings multiple and market participant acquisition premium used in the market approach. Evaluating management’s assumptions related to forecasted revenues and operating expenses involved evaluating whether the assumptions used by management were reasonable considering (i) the current and past performance of the Research reporting unit; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the income approach and the market approach and (ii) the reasonableness of the terminal rate and discount rate assumptions used in the income approach and the earnings multiple and market participant acquisition premium assumptions used in the market approach.\n\n \n\n \n\n \n\n/s/ PricewaterhouseCoopers LLP\n\nBoston, Massachusetts\n\nMarch 13, 2026\n\n \n\nWe have served as the Company’s auditor since 2010.\n\n29\n\n \n\nFORRESTER RESEARCH, INC.\n\nCONSOLIDATED BALANCE SHEETS\n\n(In thousands, except per share data)\n\n \n\n \n\n \n\nDecember 31,\n\n \n\n \n\nDecember 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nASSETS\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent Assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\nCash and cash equivalents\n\n \n\n$\n\n63,335\n\n \n\n \n\n$\n\n56,087\n\n \n\nMarketable investments\n\n \n\n \n\n64,321\n\n \n\n \n\n \n\n48,582\n\n \n\nAccounts receivable, net of allowance for expected credit losses of $360 and $434 as\n   of December 31, 2025 and 2024, respectively\n\n \n\n \n\n50,850\n\n \n\n \n\n \n\n55,490\n\n \n\nDeferred commissions\n\n \n\n \n\n22,060\n\n \n\n \n\n \n\n22,942\n\n \n\nPrepaid expenses and other current assets\n\n \n\n \n\n12,119\n\n \n\n \n\n \n\n18,263\n\n \n\nTotal current assets\n\n \n\n \n\n212,685\n\n \n\n \n\n \n\n201,364\n\n \n\nProperty and equipment, net\n\n \n\n \n\n11,217\n\n \n\n \n\n \n\n11,699\n\n \n\nOperating lease right-of-use assets\n\n \n\n \n\n30,662\n\n \n\n \n\n \n\n27,049\n\n \n\nGoodwill\n\n \n\n \n\n120,381\n\n \n\n \n\n \n\n227,959\n\n \n\nIntangible assets, net\n\n \n\n \n\n18,730\n\n \n\n \n\n \n\n27,475\n\n \n\nOther assets\n\n \n\n \n\n10,359\n\n \n\n \n\n \n\n8,316\n\n \n\nTotal assets\n\n \n\n$\n\n404,034\n\n \n\n \n\n$\n\n503,862\n\n \n\nLIABILITIES AND STOCKHOLDERS' EQUITY\n\n \n\n \n\n \n\n \n\n \n\n \n\nCurrent Liabilities:\n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts payable\n\n \n\n$\n\n832\n\n \n\n \n\n$\n\n965\n\n \n\nAccrued expenses and other current liabilities\n\n \n\n \n\n62,418\n\n \n\n \n\n \n\n57,602\n\n \n\nCurrent portion of long-term debt\n\n \n\n \n\n35,000\n\n \n\n \n\n \n\n—\n\n \n\nDeferred revenue\n\n \n\n \n\n141,812\n\n \n\n \n\n \n\n145,404\n\n \n\nTotal current liabilities\n\n \n\n \n\n240,062\n\n \n\n \n\n \n\n203,971\n\n \n\nLong-term debt\n\n \n\n \n\n—\n\n \n\n \n\n \n\n35,000\n\n \n\nNon-current operating lease liabilities\n\n \n\n \n\n29,512\n\n \n\n \n\n \n\n24,809\n\n \n\nOther non-current liabilities\n\n \n\n \n\n7,935\n\n \n\n \n\n \n\n10,545\n\n \n\nTotal liabilities\n\n \n\n \n\n277,509\n\n \n\n \n\n \n\n274,325\n\n \n\nCommitments and contingencies (Note 16)\n\n \n\n \n\n \n\n \n\n \n\n \n\nStockholders' Equity:\n\n \n\n \n\n \n\n \n\n \n\n \n\nPreferred stock, $0.01 par value\n\n \n\n \n\n \n\n \n\n \n\n \n\nAuthorized - 500 shares; issued and outstanding - none\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nCommon stock, $0.01 par value\n\n \n\n \n\n \n\n \n\n \n\n \n\nAuthorized - 125,000 shares\n\n \n\n \n\n \n\n \n\n \n\n \n\nIssued - 25,535 and 25,119 shares as of December 31, 2025 and 2024, respectively\n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding - 19,013 and 18,838 shares as of December 31, 2025 and\n   2024, respectively\n\n \n\n \n\n255\n\n \n\n \n\n \n\n251\n\n \n\nAdditional paid-in capital\n\n \n\n \n\n304,404\n\n \n\n \n\n \n\n292,217\n\n \n\nRetained earnings\n\n \n\n \n\n52,574\n\n \n\n \n\n \n\n171,934\n\n \n\nTreasury stock - 6,522 and 6,282 shares as of December 31, 2025 and 2024, respectively\n\n \n\n \n\n(229,615\n\n)\n\n \n\n \n\n(227,119\n\n)\n\nAccumulated other comprehensive loss\n\n \n\n \n\n(1,093\n\n)\n\n \n\n \n\n(7,746\n\n)\n\nTotal stockholders’ equity\n\n \n\n \n\n126,525\n\n \n\n \n\n \n\n229,537\n\n \n\nTotal liabilities and stockholders’ equity\n\n \n\n$\n\n404,034\n\n \n\n \n\n$\n\n503,862\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n30\n\n \n\nFORRESTER RESEARCH, INC.\n\nCONSOLIDATED STATEMENTS OF OPERATIONS\n\n(In thousands, except per share data)\n\n \n\nYears Ended December 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nRevenues:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch\n\n$\n\n295,607\n\n \n\n \n\n$\n\n316,739\n\n \n\n \n\n$\n\n334,396\n\n \n\nConsulting\n\n \n\n88,192\n\n \n\n \n\n \n\n97,254\n\n \n\n \n\n \n\n118,228\n\n \n\nEvents\n\n \n\n13,089\n\n \n\n \n\n \n\n18,477\n\n \n\n \n\n \n\n28,155\n\n \n\nTotal revenues\n\n \n\n396,888\n\n \n\n \n\n \n\n432,470\n\n \n\n \n\n \n\n480,779\n\n \n\nOperating expenses:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCost of services and fulfillment\n\n \n\n170,717\n\n \n\n \n\n \n\n182,534\n\n \n\n \n\n \n\n204,484\n\n \n\nSelling and marketing\n\n \n\n149,479\n\n \n\n \n\n \n\n159,621\n\n \n\n \n\n \n\n167,352\n\n \n\nGeneral and administrative\n\n \n\n52,664\n\n \n\n \n\n \n\n58,818\n\n \n\n \n\n \n\n68,497\n\n \n\nDepreciation\n\n \n\n6,025\n\n \n\n \n\n \n\n7,561\n\n \n\n \n\n \n\n8,452\n\n \n\nAmortization of intangible assets\n\n \n\n8,745\n\n \n\n \n\n \n\n9,648\n\n \n\n \n\n \n\n11,956\n\n \n\nGoodwill impairment\n\n \n\n110,707\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nRestructuring costs\n\n \n\n11,724\n\n \n\n \n\n \n\n11,773\n\n \n\n \n\n \n\n13,272\n\n \n\nLoss from sale of divested operation\n\n \n\n—\n\n \n\n \n\n \n\n1,775\n\n \n\n \n\n \n\n—\n\n \n\nTotal operating expenses\n\n \n\n510,061\n\n \n\n \n\n \n\n431,730\n\n \n\n \n\n \n\n474,013\n\n \n\nIncome (loss) from operations\n\n \n\n(113,173\n\n)\n\n \n\n \n\n740\n\n \n\n \n\n \n\n6,766\n\n \n\nInterest expense\n\n \n\n(2,680\n\n)\n\n \n\n \n\n(3,011\n\n)\n\n \n\n \n\n(3,060\n\n)\n\nOther income, net\n\n \n\n3,752\n\n \n\n \n\n \n\n4,094\n\n \n\n \n\n \n\n2,371\n\n \n\nCredit loss expense on note receivable\n\n \n\n(7,310\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nGains on investments, net\n\n \n\n2\n\n \n\n \n\n \n\n814\n\n \n\n \n\n \n\n208\n\n \n\nIncome (loss) before income taxes\n\n \n\n(119,409\n\n)\n\n \n\n \n\n2,637\n\n \n\n \n\n \n\n6,285\n\n \n\nIncome tax expense (benefit)\n\n \n\n(49\n\n)\n\n \n\n \n\n8,384\n\n \n\n \n\n \n\n3,235\n\n \n\nNet income (loss)\n\n$\n\n(119,360\n\n)\n\n \n\n$\n\n(5,747\n\n)\n\n \n\n$\n\n3,050\n\n \n\nBasic income (loss) per common share\n\n$\n\n(6.28\n\n)\n\n \n\n$\n\n(0.30\n\n)\n\n \n\n$\n\n0.16\n\n \n\nDiluted income (loss) per common share\n\n$\n\n(6.28\n\n)\n\n \n\n$\n\n(0.30\n\n)\n\n \n\n$\n\n0.16\n\n \n\nBasic weighted average common shares outstanding\n\n \n\n19,017\n\n \n\n \n\n \n\n19,094\n\n \n\n \n\n \n\n19,183\n\n \n\nDiluted weighted average common shares outstanding\n\n \n\n19,017\n\n \n\n \n\n \n\n19,094\n\n \n\n \n\n \n\n19,258\n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\n \n\n31\n\n \n\nFORRESTER RESEARCH, INC.\n\nCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)\n\n(In thousands)\n\n \n\nYears Ended December 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nNet income (loss)\n\n$\n\n(119,360\n\n)\n\n \n\n$\n\n(5,747\n\n)\n\n \n\n$\n\n3,050\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOther comprehensive income (loss), net of tax:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForeign currency translation\n\n \n\n6,622\n\n \n\n \n\n \n\n(3,264\n\n)\n\n \n\n \n\n3,248\n\n \n\nNet change in market value of investments\n\n \n\n31\n\n \n\n \n\n \n\n89\n\n \n\n \n\n \n\n99\n\n \n\nOther comprehensive income (loss)\n\n \n\n6,653\n\n \n\n \n\n \n\n(3,175\n\n)\n\n \n\n \n\n3,347\n\n \n\nComprehensive income (loss)\n\n$\n\n(112,707\n\n)\n\n \n\n$\n\n(8,922\n\n)\n\n \n\n$\n\n6,397\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\n \n\n32\n\n \n\nFORRESTER RESEARCH, INC.\n\nCONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY\n\n(In thousands)\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccumulated\n\n \n\n \n\n \n\n \n\n \n\nCommon Stock\n\n \n\n \n\nAdditional\n\n \n\n \n\n \n\n \n\n \n\nTreasury Stock\n\n \n\n \n\nOther\n\n \n\n \n\nTotal\n\n \n\n \n\nNumber of\n\n \n\n \n\n$0.01 Par\n\n \n\n \n\nPaid-in\n\n \n\n \n\nRetained\n\n \n\n \n\nNumber of\n\n \n\n \n\n \n\n \n\n \n\nComprehensive\n\n \n\n \n\nStockholders'\n\n \n\n \n\nShares\n\n \n\n \n\nValue\n\n \n\n \n\nCapital\n\n \n\n \n\nEarnings\n\n \n\n \n\nShares\n\n \n\n \n\nCost\n\n \n\n \n\nLoss\n\n \n\n \n\nEquity\n\n \n\nBalance at December 31, 2022\n\n \n\n24,367\n\n \n\n \n\n$\n\n244\n\n \n\n \n\n$\n\n261,766\n\n \n\n \n\n$\n\n174,631\n\n \n\n \n\n \n\n5,305\n\n \n\n \n\n$\n\n(207,067\n\n)\n\n \n\n$\n\n(7,918\n\n)\n\n \n\n$\n\n221,656\n\n \n\nIssuance of common stock under stock\n   plans, including tax effects\n\n \n\n317\n\n \n\n \n\n \n\n3\n\n \n\n \n\n \n\n805\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n808\n\n \n\nRepurchases of common stock\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n132\n\n \n\n \n\n \n\n(4,082\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4,082\n\n)\n\nStock-based compensation expense\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n15,486\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n15,486\n\n \n\nNet income\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,050\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,050\n\n \n\nNet change in marketable investments, net\n   of tax\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n99\n\n \n\n \n\n \n\n99\n\n \n\nForeign currency translation\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,248\n\n \n\n \n\n \n\n3,248\n\n \n\nBalance at December 31, 2023\n\n \n\n24,684\n\n \n\n \n\n \n\n247\n\n \n\n \n\n \n\n278,057\n\n \n\n \n\n \n\n177,681\n\n \n\n \n\n \n\n5,437\n\n \n\n \n\n \n\n(211,149\n\n)\n\n \n\n \n\n(4,571\n\n)\n\n \n\n \n\n240,265\n\n \n\nIssuance of common stock under\n   stock plans, including tax effects\n\n \n\n435\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n(183\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(179\n\n)\n\nRepurchases of common stock\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n845\n\n \n\n \n\n \n\n(15,970\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(15,970\n\n)\n\nStock-based compensation expense\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n14,343\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n14,343\n\n \n\nNet loss\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5,747\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(5,747\n\n)\n\nNet change in marketable investments, net\n   of tax\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n89\n\n \n\n \n\n \n\n89\n\n \n\nForeign currency translation\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,264\n\n)\n\n \n\n \n\n(3,264\n\n)\n\nBalance at December 31, 2024\n\n \n\n25,119\n\n \n\n \n\n \n\n251\n\n \n\n \n\n \n\n292,217\n\n \n\n \n\n \n\n171,934\n\n \n\n \n\n \n\n6,282\n\n \n\n \n\n \n\n(227,119\n\n)\n\n \n\n \n\n(7,746\n\n)\n\n \n\n \n\n229,537\n\n \n\nIssuance of common stock under\n   stock plans, including tax effects\n\n \n\n416\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n(33\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(29\n\n)\n\nRepurchases of common stock\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n240\n\n \n\n \n\n \n\n(2,496\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(2,496\n\n)\n\nStock-based compensation expense\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n12,220\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n12,220\n\n \n\nNet loss\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(119,360\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(119,360\n\n)\n\nNet change in marketable investments, net\n   of tax\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n31\n\n \n\n \n\n \n\n31\n\n \n\nForeign currency translation\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,622\n\n \n\n \n\n \n\n6,622\n\n \n\nBalance at December 31, 2025\n\n \n\n25,535\n\n \n\n \n\n$\n\n255\n\n \n\n \n\n$\n\n304,404\n\n \n\n \n\n$\n\n52,574\n\n \n\n \n\n \n\n6,522\n\n \n\n \n\n$\n\n(229,615\n\n)\n\n \n\n$\n\n(1,093\n\n)\n\n \n\n$\n\n126,525\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n33\n\n \n\nFORRESTER RESEARCH, INC.\n\nCONSOLIDATED STATEMENTS OF CASH FLOWS\n\n(In thousands)\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCash flows from operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nNet income (loss)\n\n$\n\n(119,360\n\n)\n\n \n\n$\n\n(5,747\n\n)\n\n \n\n$\n\n3,050\n\n \n\nAdjustments to reconcile net income (loss) to net cash provided by (used in)\n   operating activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nDepreciation\n\n \n\n6,025\n\n \n\n \n\n \n\n7,561\n\n \n\n \n\n \n\n8,452\n\n \n\nImpairment of property and equipment\n\n \n\n67\n\n \n\n \n\n \n\n967\n\n \n\n \n\n \n\n726\n\n \n\nAmortization of intangible assets\n\n \n\n8,745\n\n \n\n \n\n \n\n9,648\n\n \n\n \n\n \n\n11,956\n\n \n\nDeferred income taxes\n\n \n\n(3,929\n\n)\n\n \n\n \n\n(58\n\n)\n\n \n\n \n\n(5,461\n\n)\n\nStock-based compensation\n\n \n\n12,256\n\n \n\n \n\n \n\n14,343\n\n \n\n \n\n \n\n15,486\n\n \n\nCredit losses on note receivable\n\n \n\n7,310\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nGoodwill impairment\n\n \n\n110,707\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\nOperating lease right-of-use assets amortization and impairments\n\n \n\n6,680\n\n \n\n \n\n \n\n12,974\n\n \n\n \n\n \n\n11,658\n\n \n\nLoss from sale of divested operation\n\n \n\n—\n\n \n\n \n\n \n\n1,775\n\n \n\n \n\n \n\n—\n\n \n\nOther, net\n\n \n\n904\n\n \n\n \n\n \n\n174\n\n \n\n \n\n \n\n192\n\n \n\nChanges in assets and liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAccounts receivable\n\n \n\n4,847\n\n \n\n \n\n \n\n(9\n\n)\n\n \n\n \n\n14,715\n\n \n\nDeferred commissions\n\n \n\n882\n\n \n\n \n\n \n\n63\n\n \n\n \n\n \n\n1,352\n\n \n\nPrepaid expenses and other current assets\n\n \n\n(3,391\n\n)\n\n \n\n \n\n(197\n\n)\n\n \n\n \n\n6,020\n\n \n\nAccounts payable\n\n \n\n(144\n\n)\n\n \n\n \n\n(814\n\n)\n\n \n\n \n\n1,428\n\n \n\nAccrued expenses and other liabilities\n\n \n\n6,694\n\n \n\n \n\n \n\n(20,866\n\n)\n\n \n\n \n\n(10,644\n\n)\n\nDeferred revenue\n\n \n\n(6,250\n\n)\n\n \n\n \n\n(9,105\n\n)\n\n \n\n \n\n(23,279\n\n)\n\nOperating lease liabilities\n\n \n\n(10,962\n\n)\n\n \n\n \n\n(14,570\n\n)\n\n \n\n \n\n(13,978\n\n)\n\nNet cash provided by (used in) operating activities\n\n \n\n21,081\n\n \n\n \n\n \n\n(3,861\n\n)\n\n \n\n \n\n21,673\n\n \n\nCash flows from investing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPurchases of property and equipment\n\n \n\n(2,987\n\n)\n\n \n\n \n\n(3,400\n\n)\n\n \n\n \n\n(5,495\n\n)\n\nPurchases of marketable investments\n\n \n\n(33,454\n\n)\n\n \n\n \n\n(59,365\n\n)\n\n \n\n \n\n(61,068\n\n)\n\nProceeds from maturities of marketable investments\n\n \n\n15,175\n\n \n\n \n\n \n\n51,735\n\n \n\n \n\n \n\n28,338\n\n \n\nProceeds from sales of marketable investments\n\n \n\n5,557\n\n \n\n \n\n \n\n10,111\n\n \n\n \n\n \n\n1,453\n\n \n\nProceeds from sale of divested operation\n\n \n\n—\n\n \n\n \n\n \n\n6,000\n\n \n\n \n\n \n\n—\n\n \n\nOther investing activity\n\n \n\n1,642\n\n \n\n \n\n \n\n(62\n\n)\n\n \n\n \n\n13\n\n \n\nNet cash provided by (used in) investing activities\n\n \n\n(14,067\n\n)\n\n \n\n \n\n5,019\n\n \n\n \n\n \n\n(36,759\n\n)\n\nCash flows from financing activities:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nPayments on borrowings\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(15,000\n\n)\n\nPayment of debt issuance costs\n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(25\n\n)\n\nRepurchases of common stock\n\n \n\n(2,540\n\n)\n\n \n\n \n\n(15,920\n\n)\n\n \n\n \n\n(4,082\n\n)\n\nProceeds from issuance of common stock under employee equity\n   incentive plans\n\n \n\n1,265\n\n \n\n \n\n \n\n2,426\n\n \n\n \n\n \n\n3,489\n\n \n\nTaxes paid for net share settlements of stock-based compensation awards\n\n \n\n(1,294\n\n)\n\n \n\n \n\n(2,605\n\n)\n\n \n\n \n\n(2,681\n\n)\n\nNet cash used in financing activities\n\n \n\n(2,569\n\n)\n\n \n\n \n\n(16,099\n\n)\n\n \n\n \n\n(18,299\n\n)\n\nEffect of exchange rate changes on cash, cash equivalents and restricted cash\n\n \n\n2,957\n\n \n\n \n\n \n\n(1,914\n\n)\n\n \n\n \n\n2,773\n\n \n\nNet increase (decrease) in cash, cash equivalents and restricted cash\n\n \n\n7,402\n\n \n\n \n\n \n\n(16,855\n\n)\n\n \n\n \n\n(30,612\n\n)\n\nCash, cash equivalents and restricted cash, beginning of year\n\n \n\n58,187\n\n \n\n \n\n \n\n75,042\n\n \n\n \n\n \n\n105,654\n\n \n\nCash, cash equivalents and restricted cash, end of year\n\n$\n\n65,589\n\n \n\n \n\n$\n\n58,187\n\n \n\n \n\n$\n\n75,042\n\n \n\nSupplemental disclosure of cash flow information:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCash paid for interest\n\n$\n\n2,235\n\n \n\n \n\n$\n\n2,562\n\n \n\n \n\n$\n\n2,596\n\n \n\nCash paid for income taxes\n\n$\n\n7,234\n\n \n\n \n\n$\n\n9,277\n\n \n\n \n\n$\n\n10,643\n\n \n\nNon-cash transactions:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAdditions to property, plant and equipment included in accounts payable and accrued expenses\n\n$\n\n2,582\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n34\n\n \n\nFORRESTER RESEARCH, INC.\n\nNOTES TO CONSOLIDATED FINANCIAL STATEMENTS\n\nDecember 31, 2025\n\n \n\n \n\nNote 1 – Summary of Significant Accounting Policies\n\nBasis of Presentation\n\nForrester Research, Inc. is a global independent research and advisory firm. The Company empowers leaders in technology, customer experience, digital, marketing, sales, and product functions to accelerate growth through customer obsession. Forrester’s unique proprietary research and continuance guidance model helps executives and their teams achieve their initiatives and outcomes faster and with confidence.\n\nThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) for reporting on Form 10-K. The Company’s fiscal year is the twelve months from January 1 through December 31 and all references to 2025, 2024, and 2023 refer to the fiscal year unless otherwise noted.\n\nPrinciples of Consolidations\n\nThe accompanying consolidated financial statements include the accounts of Forrester and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.\n\nManagement Estimates\n\nThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Forrester considers the more significant of these estimates to be revenue recognition, credit losses on note receivable, and ongoing impairment reviews of goodwill. On an ongoing basis, management evaluates its estimates. Actual results could differ from these estimates.\n\nAdoption of New Accounting Pronouncements\n\nIn December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard enhances income tax disclosure requirements by requiring specified categories and greater disaggregation within the rate reconciliation table, disclosure of income taxes paid by jurisdiction, and providing clarification on uncertain tax positions and related financial statement impacts. The new standard became effective for the Company on January 1, 2025. The adoption of the standard on a prospective basis resulted in additional disclosures in the Company's income tax footnote.\n\nRecent Accounting Pronouncements\n\nIn November 2024, the FASB issued ASU No. 2024-03, Disaggregation of Income Statement Expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The new standard will be effective for the Company on January 1, 2027, with early adoption permitted. The Company anticipates adopting this standard on January 1, 2027, which will result in additional disclosures of expenses in the footnotes to its financial statements.\n\nRecent accounting standards not included above are not expected to have a material impact on our consolidated financial position and results of operations.\n\nFair Value Measurements\n\nThe carrying amounts reflected in the Consolidated Balance Sheets for cash, certain cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate fair value due to their short-term maturities. The Company’s financial instruments also include its outstanding variable-rate borrowings (refer to Note 5 – Debt). The Company believes that the carrying amount of its variable-rate borrowings reasonably approximate their fair values because the rates of interest on those borrowings reflect current market rates of interest.\n\n35\n\n \n\nAdditionally, the Company has certain financial assets recorded at fair value at each balance sheet date, including cash equivalents and marketable investments, in accordance with the accounting standards for fair value measurements. Refer to Note 8 – Fair Value Measurements for the Company’s fair value disclosures.\n\nCash, Cash Equivalents, and Marketable Investments\n\nForrester considers all short-term, highly liquid investments with original maturities at the time of purchase of three months or less to be cash equivalents, inclusive of the Company's U.S. based money market funds.\n\n \n\nThe Company’s portfolio of investments may at any time include securities of U.S. government agencies, municipal notes and bonds, corporate notes and bonds, commercial paper, and money market funds based outside of the U.S. Marketable investments are classified as current assets as they are available for use in current operations. Forrester accounts for all marketable investments as available-for-sale securities and as such, the marketable investments are carried at fair value with unrealized gains and losses (not related to credit losses) recorded in accumulated other comprehensive loss in the Consolidated Balance Sheets. Realized gains and losses on securities are included in earnings and are determined using the specific identification method. The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized loss, in accordance with the meaning of other-than-temporary impairment and its application to certain investments, as required under the accounting standards. Unrealized losses on available-for-sale securities that are determined to be temporary, and not related to credit loss, are recorded, net of tax, in accumulated other comprehensive loss. During the years ended December 31, 2025, 2024, and 2023, the Company did not record any other-than-temporary impairment losses on its available-for-sale securities.\n\n \n\nThe Company did not realize any gains or losses from the Company's available-for-sale securities during the years ended December 31, 2025, 2024, and 2023.\n\nPresentation of Restricted Cash\n\nThe 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 in the accompanying Consolidated Statements of Cash Flows (in thousands).\n\n \n\n \n\nAs of December 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nCash and cash equivalents shown in balance sheets\n\n$\n\n63,335\n\n \n\n \n\n$\n\n56,087\n\n \n\nRestricted cash classified in other assets (1):\n\n \n\n2,254\n\n \n\n \n\n \n\n2,100\n\n \n\nCash, cash equivalents and restricted cash shown in statement of cash flows\n\n$\n\n65,589\n\n \n\n \n\n$\n\n58,187\n\n \n\n \n\n(1)\nRestricted cash consists of collateral required for leased office space. The short-term or long-term classification regarding the collateral for the leased office space is determined in accordance with the expiration of the underlying leases.\n\nConcentrations of Credit Risk\n\nFinancial instruments that potentially subject Forrester to concentrations of credit risk are principally cash, cash equivalents, marketable investments, accounts receivable, and foreign currency forward exchange contracts. The Company limits its risk exposure by having its cash, cash equivalents, and foreign currency forward exchange contracts with large commercial banks and by diversifying counterparties. No single customer accounted for greater than 3% of revenues or 2% of accounts receivable in any of the periods presented.\n\nForrester does not have any off-balance sheet arrangements.\n\nAllowance for Credit Losses on Note Receivable\n\nAs 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.\n\nThe 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 Statements of\n\n36\n\n \n\nOperations. The Company will update its assessment of expected credit loss each quarter and if the borrower’s financial condition worsens in the future, the Company 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, the Company could be required to reverse all or a portion of the previously recorded allowance for credit loss.\n\nGoodwill\n\nGoodwill represents the excess of the purchase price of acquired businesses over the estimated fair values of the tangible and identifiable intangible net assets acquired. Goodwill is not amortized; however, it is required to be tested for impairment annually, which requires assessment of the potential impairment at the reporting unit level. Reporting units are determined based on the components of the Company's operating segments that constitute a business for which financial information is available and for which operating results are regularly reviewed by segment management. Testing for impairment is also required on an interim basis if an event or circumstance indicates it is more likely than not an impairment loss has been incurred. When performing an impairment assessment, the Company either uses a qualitative assessment, to determine if it is more likely than not that the estimated fair value of any reporting unit is less than its carrying amount, or a quantitative analysis, to determine and compare the fair value of each reporting unit to its carrying value, or a combination of both. An impairment of goodwill is recognized to the extent that the carrying amount of a reporting unit exceeds its estimated fair value. Absent an event that indicates a specific impairment may exist, the Company has selected November 30th as the date for performing the annual goodwill impairment test. A goodwill impairment charge of $110.7 million was recorded for the year ended December 31, 2025. Goodwill impairment charges were not required for the years ended December 31, 2024 and 2023.\n\nImpairment of Other Long-Lived Tangible and Intangible Assets\n\nOther long-lived assets primarily consist of property and equipment, operating lease right-of-use assets, and intangible assets. The Company periodically evaluates the recoverability of other long-lived assets whenever events and changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. When indicators of impairment are present, the carrying values of the asset group are evaluated in relation to the future undiscounted cash flows of the underlying business. The net book value of the underlying asset is adjusted to fair value if the sum of the expected discounted cash flows is less than book value. Fair values are based on estimates of market prices and assumptions concerning the amount and timing of estimated future cash flows and assumed discount rates, reflecting varying degrees of perceived risk. The Company recorded $0.1 million, $4.6 million, and $2.6 million of long-lived asset impairment charges during 2025, 2024 and 2023, respectively (refer to Note 6 – Leases).\n\nNon-Current Liabilities\n\nThe Company records deferred tax liabilities and other liabilities that are expected to be settled over a period that exceeds one year as non-current liabilities.\n\nForeign Currency\n\nThe functional currency of Forrester’s wholly-owned subsidiaries is their respective local currency. These subsidiary financial statements are translated to U.S. dollars using period-end exchange rates for assets and liabilities and average exchange rates during the corresponding period for revenues and expenses, with translation gains and losses recorded as a component of accumulated other comprehensive loss in the Consolidated Balance Sheets. Gains and losses related to the remeasurement of monetary assets and liabilities denominated in a currency other than an entity’s functional currency are included in other income, net in the Consolidated Statements of Operations. Forrester recorded $0.7 million, $0.8 million, and $0.3 million of foreign exchange losses during 2025, 2024, and 2023, respectively.\n\nRevenue\n\nThe Company generates all of its revenues from contracts with customers, which totaled $396.9 million for the year ended December 31, 2025.\n\nThe Company recognizes revenue when a customer obtains control of promised products or services, in an amount that reflects the consideration expected to be received in exchange for those products or services. The Company follows the five-step model prescribed under Topic 606: (i) identify the contract(s) with a customer; (ii) identify the performance obligation(s) in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligation(s) in the contract; and (v) recognize\n\n37\n\n \n\nrevenue when (or as) the Company satisfies each performance obligation. Revenues are presented net of any sales or value added taxes collected from customers and remitted to the government.\n\nThe Company accounts for a contract when it has approval and commitment from both parties, the fees, payment terms and rights of the parties regarding the products or services to be transferred are identified, the contract has commercial substance, and it is probable that substantially all of the consideration for the products and services expected to be transferred is collectible. The Company applies judgment in determining the customer’s ability and intention to pay for services expected to be transferred, which is based on factors including the customer’s payment history, management’s ability to mitigate exposure to credit risk (for example, requiring payment in advance of the transfer of products or services, or the ability to stop transferring promised products or services in the event a customer fails to pay consideration when due), and experience selling to similarly situated customers. Since the transaction price is fixed and defined as part of entering into a contract, and generally does not change, variable consideration is insignificant.\n\nPerformance obligations within a contract are identified based on the products and services promised to be transferred in the contract. When a contract includes more than one promised product or service, the Company must apply judgment to determine whether the promises represent multiple performance obligations or a single, combined performance obligation. This evaluation requires the Company to determine if the promises are both capable of being distinct, where the customer can benefit from the product or service on its own or together with other resources readily available, and are distinct within the context of the contract, where the transfer of products or services is separately identifiable from other promises in the contract. When both criteria are met, each promised product or service is accounted for as a separate performance obligation. In cases where the promises are distinct, the Company is further required to evaluate if the promises are a series of products and services that are substantially the same and have the same pattern of transfer to the customer (referred to as the “series” guidance). When the Company determines that promises meet the series guidance, they are accounted for as a single, combined performance obligation.\n\nContracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation on a relative basis according to their standalone selling prices. The Company determines standalone selling price based on the price at which the performance obligation is sold separately. If the Company does not have a history of selling a performance obligation, management applies judgment to estimate the standalone selling price, taking into consideration available information, including market conditions, factors considered to set list prices, pricing of similar products, and internal pricing objectives. The corresponding allocated revenues are recognized when (or as) the performance obligations are satisfied.\n\nResearch revenues\n\nThe majority of research revenues are subscriptions to our research, including access to a designated portion of our research and, depending on the type of license, unlimited analyst inquiry or guidance sessions, an executive coach or advisor, peer offerings, and unlimited participation in Forrester webinars, all of which are delivered throughout the contract period. The Company has concluded that these promises represent a stand ready obligation to provide a daily information service, in which the services are the same each day, every day is distinct, and the customer simultaneously receives and consumes the benefits as the Company transfers control throughout the contract period. Accordingly, these subscriptions meet the requirements of the series guidance and are each accounted for as a single performance obligation. The Company recognizes revenue ratably over the contract term, using an output measure of time elapsed. Certain of the research products include advisory services and/or an event ticket, which are accounted for as a separate performance obligation and are recognized at the point in time the service is completed, the final deliverable is transferred to the customer, or the event occurs. Research revenues also include subscriptions to, and individual licenses of electronic reprints, which are written research documents prepared by Forrester’s analysts and hosted via our on-line platform. Individual licenses of reprints include a promise to deliver a customer-selected research document and certain usage data provided through the on-line platform, which represents two performance obligations. The Company satisfies the performance obligation for the research document by providing access to the electronic reprint and accordingly recognizes revenue at that point in time. The Company satisfies the performance obligation for the data portion of the reprint on a daily basis and accordingly recognizes revenue over time. For reprint subscriptions, which allow the customer to utilize different reprints throughout the subscription period, the Company recognizes revenue ratably over the contract term.\n\nConsulting revenues\n\nConsulting revenues consist of consulting projects and advisory services. Consulting project revenues consist of the delivery of focused insights and recommendations to assist clients in developing and executing their technology and business strategies. Projects are fixed-fee arrangements that are generally completed over two weeks to three months. The Company has concluded that each project represents a single performance obligation as each is a single promise to deliver a customized engagement and deliverable. For the majority of these services, either practically or contractually, the work performed and delivered to the customer has no alternative use to the Company. Additionally, Forrester maintains an enforceable right to payment at all times throughout the contract. The Company utilizes an input method and recognizes revenue over time, based on hours expended relative to the total estimated hours required to satisfy the performance obligation. The input method closely aligns with how control of interim deliverables is transferred\n\n38\n\n \n\nto the customer throughout the engagement and is also the method used internally to price the project and assess operational performance. If the Company were to enter into an agreement where it does not have an enforceable right to payment at all times, revenue would be recognized at the point in time the project is completed. Certain of our content marketing consulting projects contain a second performance obligation for access to interactive tools over a specified license period, typically 12 or 24 months. The Company recognizes revenue for this performance obligation ratably over the license period.\n\nAdvisory services revenues are short-term presentations or knowledge sharing sessions (which can range from one hour to two days), such as speeches and advisory days. Each is a promise for a Forrester analyst to deliver a deeper understanding of Forrester’s published research and represents a single performance obligation. Revenue is recognized at the point in time the service is completed, which is when the customer has received the benefit(s) of the service.\n\nEvents revenues\n\nEvents revenues consist of either ticket or sponsorship sales for Forrester-hosted events. Each is a single promise that either allows entry to, or grants the right to promote a product or service at, a specific event. The Company concluded that each of these represents a single performance obligation. The Company recognizes revenue at the completion of the event, which is the point in time when the customer has received the benefit(s) from attending or sponsoring the event.\n\nPrepaid performance obligations\n\nPrepaid performance obligations (including event tickets, reprints, consulting projects, and advisory services) on non-cancelable contracts, for which the Company estimates will expire unused, are recognized in proportion to the pattern of related rights exercised by the customer. This assessment requires judgment, including estimating the percentage of prepaid rights that will go unexercised and anticipating the impact that future changes to products, pricing, and customer engagement will have on actual expirations. The Company updates estimates used to recognize unexercised rights on a quarterly basis.\n\nContract modifications\n\nConsulting contracts are occasionally modified to update the scope of the services purchased. Since a consulting project is a single performance obligation that is only partially satisfied at the modification date, the updated project requirements are typically not distinct and the modification is accounted for as part of the existing contract. The effect of the modification on the transaction price and the Company’s measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either an increase or decrease) on a cumulative catch-up basis. For the year ended December 31, 2025, the Company recorded an immaterial amount of cumulative catch-up adjustments.\n\nRefer to Note 14 – Operating Segment and Enterprise Wide Reporting for a summary of disaggregated revenue by geographic region.\n\nContract Assets and Liabilities\n\nAccounts receivable\n\nAccounts receivable includes amounts billed and currently due from customers. Since the only condition for payment of the Company's invoices is the passage of time, the Company records a receivable on the date the invoice is issued. Also included in accounts receivable are unbilled amounts resulting from revenue exceeding the amount billed to the customer, where the right to payment is unconditional. If the right to payment for services performed was conditional on something other than the passage of time, the unbilled amount would be recorded as a separate contract asset. There were no contract assets as of December 31, 2025 or 2024.\n\nThe majority of the Company’s contracts are non-cancelable. However, for contracts that are cancelable by the customer, the Company does not record a receivable when it issues an invoice. The Company records accounts receivable on these contracts only up to the amount of revenue earned but not yet collected.\n\nIn addition, since the majority of the Company’s contracts are invoiced for annual periods, and payment is expected within one year from the transfer of products and services, the Company does not adjust its receivables or transaction price for the effects of a significant financing component.\n\nDeferred revenue\n\nThe Company refers to contract liabilities as deferred revenue in the Consolidated Balance Sheets. Payment terms in the Company’s customer contracts vary, but generally require payment in advance of fully satisfying the performance obligation(s).\n\n39\n\n \n\nDeferred revenue consists of billings in excess of revenue recognized. Similar to accounts receivable, the Company does not record deferred revenue for unpaid invoices issued on a cancelable contract.\n\nDuring the years ended December 31, 2025 and 2024, the Company recognized approximately $133.3 million and $141.8 million of revenue, respectively, related to its deferred revenue balance at January 1 of each such period.\n\nApproximately $329.2 million of revenue is expected to be recognized during the next 36 months from remaining performance obligations as of December 31, 2025.\n\nCost to Obtain Contracts\n\nThe Company capitalizes commissions paid to sales representatives and related fringe benefits costs that are incremental to obtaining customer contracts. These costs are included in deferred commissions in the Consolidated Balance Sheets. The Company elected the practical expedient to account for these costs at a portfolio level as the Company’s contracts are similar in nature and the amortization model used closely matches the amortization expense that would be recognized on a contract-by-contract basis. Costs to obtain a contract are amortized to earnings over the initial contract term, which is the same period the related revenue is recognized.\n\nAmortization of the expense related to deferred commissions was $35.3 million, $37.2 million, and $39.8 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is recorded in selling and marketing expenses in the Consolidated Statements of Operations. The Company evaluates the recoverability of deferred commissions at each balance sheet date and there were no impairments recorded during 2025, 2024, or 2023.\n\nLeases\n\nThe Company determines whether an arrangement is a lease at inception of the arrangement. The Company accounts for a lease when it has the right to control the leased asset for a period of time while obtaining substantially all of the asset's economic benefits. All of the Company’s leases are operating leases, the majority of which are for office space. Operating lease right-of-use (\"ROU\") assets and non-current operating lease liabilities are included as individual line items in the Consolidated Balance Sheets, while short-term operating lease liabilities are recorded within accrued expenses and other current liabilities.\n\nOperating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The discount rate used to determine the present value of the lease payments is the Company’s incremental borrowing rate based on the information available at lease inception, as generally an implicit rate in the lease is not readily determinable. An operating lease ROU asset includes all lease payments, lease incentives and initial direct costs incurred. Some of the Company’s leases include options to extend or terminate the lease. When determining the lease term, these options are included in the measurement and recognition of the Company’s ROU assets and lease liabilities when it is reasonably certain that the Company will exercise the option(s). The Company considers various economic factors when making this determination, including, but not limited to, the significance of leasehold improvements incurred in the office space, the difficulty in replacing the asset, underlying contractual obligations, and specific characteristics unique to a particular lease.\n\nSubsequent to entering into a lease arrangement, the Company reassesses the certainty of exercising options to extend or terminate a lease. When it becomes reasonably certain that the Company will exercise an option that was not included in the lease term, the Company accounts for the change in circumstances as a lease modification, which results in the remeasurement of the ROU asset and lease liability as of the modification date.\n\nLease expense for operating leases is recognized on a straight-line basis over the lease term based on the total lease payments (which include initial direct costs and lease incentives). The expense is included in operating expenses in the Consolidated Statements of Operations.\n\nThe Company’s lease agreements generally contain lease and non-lease components. Non-lease components are fixed charges stated in an agreement and primarily include payments for parking at the leased office facilities. The Company accounts for the lease and fixed payments for non-lease components as a single lease component under Topic 842, which increases the amount of the ROU assets and lease liabilities. Most of the Company’s lease agreements also contain variable payments, primarily maintenance-related costs, which are expensed as incurred and not included in the measurement of the ROU assets and lease liabilities.\n\nLeases with an initial term of twelve months or less are not recorded in the Consolidated Balance Sheets and are not material.\n\nAdvertising Costs\n\nThe Company expenses advertising costs as incurred. Advertising expense for the years ended December 31, 2025, 2024, and 2023 was $0.9 million, $0.9 million, and $1.7 million, respectively. These expenses consisted primarily of online marketing and are included in selling and marketing expense in the Consolidated Statements of Operations.\n\n40\n\n \n\nStock-Based Compensation\n\nThe Company recognizes the fair value of stock-based compensation expense over the requisite service period of the individual grantee, which generally equals the vesting period. Forfeitures are recognized as they occur and all income tax effects related to settlements of share-based payment awards are reported in earnings as an increase or decrease to income tax expense (benefit). All income tax-related cash flows resulting from share-based payments are reported as operating activities in the Consolidated Statements of Cash Flows and cash paid by directly withholding shares for tax withholding purposes is classified as a financing activity.\n\nStock-based compensation expense was recorded in the following expense categories (in thousands):\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCost of services and fulfillment\n\n \n\n$\n\n8,376\n\n \n\n \n\n$\n\n8,700\n\n \n\n \n\n$\n\n9,068\n\n \n\nSelling and marketing\n\n \n\n \n\n866\n\n \n\n \n\n \n\n2,164\n\n \n\n \n\n \n\n2,943\n\n \n\nGeneral and administrative\n\n \n\n \n\n3,014\n\n \n\n \n\n \n\n3,479\n\n \n\n \n\n \n\n3,475\n\n \n\nTotal\n\n \n\n$\n\n12,256\n\n \n\n \n\n$\n\n14,343\n\n \n\n \n\n$\n\n15,486\n\n \n\nLiability-Classified Awards\n\nDuring 2025, the Company granted stock awards that are being accounted for as liability awards, such that the fair value of the awards are determined on a quarterly basis beginning at the grant date until final vesting. Changes in the fair value of liability-classified awards are recorded in accrued expenses and other current liabilities. During the year ended December 31, 2025, the Company recorded $36 thousand of stock-based compensation expense related to these awards.\n\nThe options granted under the equity incentive plan and shares subject to the employee stock purchase plan were valued utilizing the Black-Scholes model using the following assumptions and had the following fair values (no options were granted in 2024):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\n \n\n \n\nEquity Incentive Plans\n\n \n\n \n\nEmployee Stock Purchase Plan\n\n \n\n \n\nEmployee Stock Purchase Plan\n\n \n\n \n\nEquity Incentive Plans\n\n \n\n \n\nEmployee Stock Purchase Plan\n\n \n\nAverage risk-free interest rate\n\n \n\n \n\n3.91\n\n%\n\n \n\n \n\n3.84\n\n%\n\n \n\n \n\n4.55\n\n%\n\n \n\n \n\n4.27\n\n%\n\n \n\n \n\n5.51\n\n%\n\nExpected dividend yield\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n0.0\n\n%\n\n \n\n \n\n0.0\n\n%\n\nExpected life\n\n \n\n4.50 Years\n\n \n\n \n\n0.5 Years\n\n \n\n \n\n0.5 Years\n\n \n\n \n\n4.75 Years\n\n \n\n \n\n0.5 Years\n\n \n\nExpected volatility\n\n \n\n \n\n36\n\n%\n\n \n\n \n\n52\n\n%\n\n \n\n \n\n38\n\n%\n\n \n\n \n\n43\n\n%\n\n \n\n \n\n35\n\n%\n\nWeighted average fair value\n\n \n\n$\n\n3.38\n\n \n\n \n\n$\n\n2.90\n\n \n\n \n\n$\n\n4.86\n\n \n\n \n\n$\n\n14.24\n\n \n\n \n\n$\n\n7.90\n\n \n\nExpected volatility is based on the historical volatility of Forrester’s common stock as well as management’s expectations of future volatility over the expected term of the awards granted. The risk-free interest rate is based on the U.S. Treasury Constant Maturity rate with an equivalent remaining term. The expected term calculation is based upon the option period of the employee stock purchase plan, and for options, it is based upon Forrester's historical experience of exercise patterns.\n\nThe unamortized fair value of stock-based awards as of December 31, 2025 was $21.8 million with a weighted average remaining recognition period of 2.7 years.\n\nDepreciation and Amortization\n\nForrester provides for depreciation and amortization of property and equipment, computed using the straight-line method, over their estimated useful lives of its assets as follows:\n\n \n\n \n\n \n\nEstimated\n\n \n\n \n\nUseful Life\n\nComputers and equipment\n\n \n\n3 to 10 Years\n\nComputer software\n\n \n\n3 to 5 Years\n\nFurniture and fixtures\n\n \n\n7 Years\n\nLeasehold improvements\n\n \n\nShorter of asset life or lease term\n\n41\n\n \n\nForrester provides for amortization of intangible assets, computed using an accelerated method according to the expected cash flows to be received from the underlying assets, over their estimated useful lives as follows:\n\n \n\n \n\nEstimated\n\n \n\n \n\nUseful Life\n\nCustomer relationships\n\n \n\n5 to 9 Years\n\nTechnology\n\n \n\n1 to 8 Years\n\nTrademarks\n\n \n\n6 to 8 Years\n\nIncome Taxes\n\nForrester recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statements and tax basis of assets and liabilities as well as operating loss carryforwards.\n\nForrester’s provision for income taxes is composed of a current and a deferred provision for federal, state, and foreign jurisdictions. The current provision is calculated as the estimated taxes payable or refundable on tax returns for the current year. The deferred provision is calculated as the net change during the year in deferred tax assets and liabilities. Valuation allowances are provided if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized.\n\nForrester accounts for uncertain tax positions using a “more-likely-than-not” threshold for recognizing and resolving uncertain tax positions. The evaluation of uncertain tax positions is based on factors including, but not limited to, changes in tax law, the measurement of tax positions taken or expected to be taken in tax returns, the effective settlement of matters subject to audit, new audit activity, and changes in facts or circumstances related to a tax position. The Company evaluates these tax positions on a quarterly basis. The Company also accrues for potential interest and penalties related to unrecognized tax benefits in income tax expense (benefit).\n\nNet Income (Loss) Per Common Share\n\nBasic net income (loss) per common share is computed by dividing net income (loss) by the basic weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the diluted weighted average number of common shares and common equivalent shares outstanding during the period. The weighted average number of common equivalent shares outstanding has been determined in accordance with the treasury-stock method. Common stock equivalents consist of common stock issuable upon the exercise of outstanding stock options and the vesting of restricted stock units.\n\nBasic and diluted weighted average common shares are as follows (in thousands):\n\n \n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nBasic weighted average common shares outstanding\n\n \n\n \n\n19,017\n\n \n\n \n\n \n\n19,094\n\n \n\n \n\n \n\n19,183\n\n \n\nWeighted average common equivalent shares\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n75\n\n \n\nDiluted weighted average common shares outstanding\n\n \n\n \n\n19,017\n\n \n\n \n\n \n\n19,094\n\n \n\n \n\n \n\n19,258\n\n \n\nOptions and restricted stock units excluded from diluted weighted\n   average share calculation as effect would have been anti-dilutive\n\n \n\n \n\n1,806\n\n \n\n \n\n \n\n1,307\n\n \n\n \n\n \n\n730\n\n \n\n \n\nNote 2 - Divestiture\n\nIn August 2024, the Company completed the sale of a non-core product line, FeedbackNow, for approximately $17.6 million. The Company received $6.0 million in cash from the sale, along with a note receivable of $9.0 million, and a non-marketable equity investment in the acquirer valued at $2.6 million, which is accounted for under the cost method. The Company recorded a pre-tax loss of $1.8 million on the sale of FeedbackNow, which is included in loss from sale of divested operation in the Consolidated Statements of Operations for the year ended December 31, 2024. The FeedbackNow product line was included in the Company’s Research segment. The principal components of the assets divested included goodwill, property and equipment, and accounts receivable, with carrying amounts of $14.8 million, $2.2 million, and $2.4 million, respectively, while the liabilities transferred with the sale primarily consisted of deferred revenue with a carrying amount of $1.8 million.\n\nThe repayment terms of the note were modified during the first quarter of 2025 resulting in $1.5 million plus all accrued interest being due in December 2025, and the remainder due in the second quarter of 2026. In conjunction with the modification of the repayment terms of the note, the Company updated its analysis of the current expected credit loss for the note. As a result, during the three months ended March 31, 2025, the Company recorded a $0.9 million allowance for credit losses.\n\n42\n\n \n\nAs a result of a change in the borrower's expected ability to make the scheduled payments on the note, during the three months ended September 30, 2025, the Company's assessment of default risk on the note increased. Accordingly, the Company updated its analysis of the current expected credit loss for the note. As a result, the Company recorded an additional $6.4 million allowance for credit losses during the three months ended September 30, 2025. As of December 31, 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 note, net of the cumulative allowance for credit losses, is $2.6 million and is recorded within other assets in the Consolidated Balance Sheets. During the year ended December 31, 2024, no material allowance or write-off amounts were recorded.\n\nIn addition, given that collection of interest on the loan is less than probable, interest income recognition was suspended during the three months ended September 30, 2025. As such, interest income will only be recognized to the extent that cash is received. In the future, the accrual of interest income will be restored only when the borrower is contractually current or the collection of future payments is reasonably assured. As of December 31, 2025, the note receivable remains in nonaccrual status. The amount of interest income recognized during the year ended December 31, 2025 was $0.5 million.\n\nNote 3 – Marketable Investments\n\nThe following table summarizes the Company’s marketable investments (in thousands):\n\n \n\n \n\n \n\nAs of December 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\nGross\n\n \n\n \n\nGross\n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortized\n\n \n\n \n\nUnrealized\n\n \n\n \n\nUnrealized\n\n \n\n \n\nMarket\n\n \n\n \n\n \n\nCost\n\n \n\n \n\nGains\n\n \n\n \n\nLosses\n\n \n\n \n\nValue\n\n \n\nCorporate obligations\n\n \n\n$\n\n16,641\n\n \n\n \n\n$\n\n81\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n16,722\n\n \n\nMoney market funds\n\n \n\n \n\n47,599\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n47,599\n\n \n\nTotal\n\n \n\n$\n\n64,240\n\n \n\n \n\n$\n\n81\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n64,321\n\n \n\n \n\n \n\n \n\nAs of December 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\nGross\n\n \n\n \n\nGross\n\n \n\n \n\n \n\n \n\n \n\n \n\nAmortized\n\n \n\n \n\nUnrealized\n\n \n\n \n\nUnrealized\n\n \n\n \n\nMarket\n\n \n\n \n\n \n\nCost\n\n \n\n \n\nGains\n\n \n\n \n\nLosses\n\n \n\n \n\nValue\n\n \n\nCorporate obligations\n\n \n\n$\n\n12,140\n\n \n\n \n\n$\n\n46\n\n \n\n \n\n$\n\n(6\n\n)\n\n \n\n$\n\n12,180\n\n \n\nMoney market funds\n\n \n\n \n\n36,402\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n36,402\n\n \n\nTotal\n\n \n\n$\n\n48,542\n\n \n\n \n\n$\n\n46\n\n \n\n \n\n$\n\n(6\n\n)\n\n \n\n$\n\n48,582\n\n \n\nRealized gains and losses on investments are included in earnings and are determined using the specific identification method. Sales of marketable investments during 2025 and 2024 primarily represent redemptions from non-U.S. based money market funds, and there were no realized gains or losses on marketable investments during the years ended December 31, 2025, 2024, and 2023.\n\nThe following table summarizes the maturity periods of the marketable investments in the Company’s portfolio as of December 31, 2025 (in thousands):\n\n \n\n \n\n \n\n2026\n\n \n\n \n\n2027\n\n \n\n \n\n2028\n\n \n\n \n\nTotal\n\n \n\nCorporate obligations\n\n \n\n$\n\n8,060\n\n \n\n \n\n$\n\n4,802\n\n \n\n \n\n$\n\n3,860\n\n \n\n \n\n$\n\n16,722\n\n \n\nMoney market funds\n\n \n\n \n\n47,599\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n47,599\n\n \n\nTotal\n\n \n\n$\n\n55,659\n\n \n\n \n\n$\n\n4,802\n\n \n\n \n\n$\n\n3,860\n\n \n\n \n\n$\n\n64,321\n\n \n\nThe following table shows the gross unrealized losses and market value of the Company’s available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position (in thousands):\n\n \n\n \n\nAs of December 31, 2024\n\n \n\n \n\n \n\nLess Than 12 Months\n\n \n\n \n\n12 Months or Greater\n\n \n\n \n\n \n\nMarket\n\n \n\n \n\nUnrealized\n\n \n\n \n\nMarket\n\n \n\n \n\nUnrealized\n\n \n\n \n\n \n\nValue\n\n \n\n \n\nLosses\n\n \n\n \n\nValue\n\n \n\n \n\nLosses\n\n \n\nCorporate obligations\n\n \n\n$\n\n803\n\n \n\n \n\n$\n\n4\n\n \n\n \n\n$\n\n997\n\n \n\n \n\n$\n\n2\n\n \n\nTotal\n\n \n\n$\n\n803\n\n \n\n \n\n$\n\n4\n\n \n\n \n\n$\n\n997\n\n \n\n \n\n$\n\n2\n\n \n\n \n\n43\n\n \n\nNote 4 – Goodwill and Other Intangible Assets\n\nA summary of goodwill by segment and the changes in the carrying amount of goodwill is shown in the following table (in thousands):\n\n \n\n \n\nResearch\nSegment\n\n \n\n \n\nConsulting\nSegment\n\n \n\n \n\nTotal\n\n \n\nBalance at December 31, 2023\n\n$\n\n236,058\n\n \n\n \n\n$\n\n8,199\n\n \n\n \n\n$\n\n244,257\n\n \n\nDisposition (1)\n\n \n\n(14,795\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(14,795\n\n)\n\nForeign currency translation adjustments\n\n \n\n(1,449\n\n)\n\n \n\n \n\n(54\n\n)\n\n \n\n \n\n(1,503\n\n)\n\nBalance at December 31, 2024\n\n \n\n219,814\n\n \n\n \n\n \n\n8,145\n\n \n\n \n\n \n\n227,959\n\n \n\nImpairment\n\n \n\n(110,707\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(110,707\n\n)\n\nForeign currency translation adjustments\n\n \n\n2,973\n\n \n\n \n\n \n\n156\n\n \n\n \n\n \n\n3,129\n\n \n\nBalance at December 31, 2025\n\n$\n\n112,080\n\n \n\n \n\n$\n\n8,301\n\n \n\n \n\n$\n\n120,381\n\n \n\n \n\n(1)\nSee Note 2 - Divestiture for additional information. The amount of goodwill allocated to the divestiture was determined using a relative fair value approach.\n\nAs a result of the substantial and sustained decline in the Company's stock price and its overall market capitalization from mid-February 2025 through March 31, 2025, along with other qualitative considerations, including the continued impact from the conditions in the macroeconomic environment, uncertainty created by changes in the United States’ trade policies, and the larger than expected decline in contract bookings during the first quarter of 2025, it was determined that a triggering event occurred, indicating goodwill may be impaired. Accordingly, the Company conducted a quantitative impairment test of its goodwill as of March 31, 2025 for its two reporting units (Research and Consulting) that have goodwill. As a result of the quantitative impairment test performed, the Company determined goodwill was impaired for its Research reporting unit and recorded a goodwill impairment charge of $83.9 million during the period ended March 31, 2025.\n\nThe Company performed its annual impairment test as of November 30, 2025 utilizing a quantitative assessment to determine if the fair values of its Research and Consulting reporting units was less than their respective carrying values. The Company determined goodwill was impaired for its Research reporting unit and recorded an additional goodwill impairment charge of $26.8 million during the three months ended December 31, 2025. The additional impairment charge recorded in the fourth quarter of 2025 was primarily due to the decrease in the Company's stock price as of November 30, 2025.\n\nThe Company estimated the implied fair value of its reporting units using both an income approach and market approach. 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 have been deemed reasonable by the Company. Changes in the estimates or assumptions used in the quantitative impairment test could materially affect the determination of fair value of the Company’s reporting units and the associated goodwill impairment assessment. Potential events and circumstances that could have an adverse impact on the Company's estimates and assumptions include, but are not limited to, lower than expected bookings growth, increases in costs, and other macroeconomic factors.\n\nManagement concluded that a triggering event did not occur as of June 30, 2025, September 30, 2025, and December 31, 2025 and as such, a quantitative impairment test of goodwill was not required during these periods. While management cannot predict if or when additional goodwill impairments may occur, future goodwill impairments could have material adverse effects on the Company's results of operations and financial condition.\n\nAs of December 31, 2025, the Company had $110.7 million of accumulated goodwill impairment losses, and the Consulting reporting unit had a negative carrying value as of November 30, 2025, the date of the last quantitative test.\n\nThe Company reviews long-lived assets, including property and equipment, operating lease right-of-use assets, and finite-lived intangible assets, for impairment when an event occurs that may indicate potential impairment. In connection with the identified triggering events as of March 31, 2025 and November 30, 2025, the Company performed, prior to the goodwill impairment test, a quantitative assessment of its long-lived assets by comparing undiscounted future cash flows to the net carrying value of the underlying assets and concluded that its long-lived assets were not impaired. However, if future events occur or if business conditions deteriorate, the Company may be required to record an impairment loss, and or accelerate the amortization of finite-lived intangible assets in the future, which could be material to its results of operations and financial condition.\n\n44\n\n \n\nA summary of Forrester’s intangible assets is as follows (in thousands):\n\n \n\n \n\nDecember 31, 2025\n\n \n\n \n\nGross\n\n \n\n \n\n \n\n \n\n \n\nNet\n\n \n\n \n\nCarrying\n\n \n\n \n\nAccumulated\n\n \n\n \n\nCarrying\n\n \n\n \n\nAmount\n\n \n\n \n\nAmortization\n\n \n\n \n\nAmount\n\n \n\nAmortizable intangible assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCustomer relationships\n\n$\n\n77,000\n\n \n\n \n\n$\n\n58,270\n\n \n\n \n\n$\n\n18,730\n\n \n\nTotal\n\n$\n\n77,000\n\n \n\n \n\n$\n\n58,270\n\n \n\n \n\n$\n\n18,730\n\n \n\n \n\n \n\nDecember 31, 2024\n\n \n\n \n\nGross\n\n \n\n \n\n \n\n \n\n \n\nNet\n\n \n\n \n\nCarrying\n\n \n\n \n\nAccumulated\n\n \n\n \n\nCarrying\n\n \n\n \n\nAmount\n\n \n\n \n\nAmortization\n\n \n\n \n\nAmount\n\n \n\nAmortizable intangible assets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nCustomer relationships\n\n$\n\n77,000\n\n \n\n \n\n$\n\n49,946\n\n \n\n \n\n$\n\n27,054\n\n \n\nTechnology\n\n \n\n13,000\n\n \n\n \n\n \n\n12,978\n\n \n\n \n\n \n\n22\n\n \n\nTrademarks\n\n \n\n12,000\n\n \n\n \n\n \n\n11,601\n\n \n\n \n\n \n\n399\n\n \n\nTotal\n\n$\n\n102,000\n\n \n\n \n\n$\n\n74,525\n\n \n\n \n\n$\n\n27,475\n\n \n\nAmortization expense related to intangible assets was approximately $8.7 million, $9.6 million, and $12.0 million during the years ended December 31, 2025, 2024, and 2023, respectively. Estimated intangible asset amortization expense for each of the three succeeding years is as follows (in thousands):\n\n2026\n\n \n\n$\n\n8,324\n\n \n\n2027\n\n \n\n \n\n8,324\n\n \n\n2028\n\n \n\n \n\n2,082\n\n \n\nTotal\n\n \n\n$\n\n18,730\n\n \n\n \n\n \n\nNote 5 – Debt\n\nThe Company and certain of its subsidiaries are parties to a credit facility, dated as of January 3, 2019 and amended in December 2021 and April 2023, with JPMorgan Chase Bank, N.A., as administrative agent (the “Administrative Agent”), and the lenders party thereto (the \"Credit Agreement\").\n\nThe Credit Agreement matures in December 2026 and includes the following provisions: (a) an aggregate principal amount of revolving credit commitments (the \"Revolving Credit Facility\") of $150.0 million, (b) margin, at Forrester’s option, (i) between 1.25% and 1.75% per annum for loans based on LIBOR and (ii) between 0.25% and 0.75% per annum for loans based on the applicable base rate, in each case, based on Forrester’s consolidated total leverage ratio, and (c) a commitment fee applicable to undrawn revolving credit commitments between 0.30% and 0.20% per annum based on the Company's consolidated total leverage ratio.\n\nThe Credit Agreement permits the Company to increase commitments under the Revolving Credit Facility in an aggregate principal amount up to $50.0 million, subject to approval by the Administrative Agent and certain customary terms and conditions.\n\nThe Company may voluntarily prepay revolving loans under the credit facility at any time and from time to time, without premium or penalty. No interim amortization payments are required to be made under the credit facility.\n\nIn April 2023, the Company executed a second amendment to the credit facility to facilitate the conversion from LIBOR to SOFR and to set the base interest rate at SOFR plus 10 basis points.\n\nUp to $5.0 million of the Revolving Credit Facility is available for the issuance of letters of credit, and any drawings under the letters of credit must be reimbursed within one business day. As of December 31, 2025, $0.7 million in letters of credit were issued under the Revolving Credit Facility.\n\nOn March 12, 2026, the Company executed a third amendment to the credit facility that, among other changes, extended the maturity date from December 2026 to March 2029 (refer to Note 17 – Subsequent Event in the Notes to Consolidated Financial Statements for further information).\n\nOutstanding Borrowings\n\nThe Company’s total outstanding borrowings as of both December 31, 2025 and 2024 was $35.0 million. The contractual annualized interest rate as of December 31, 2025 on the Revolving Credit Facility was 5.066%. The Company had $114.3 million of\n\n45\n\n \n\navailable borrowing capacity on the Revolving Credit Facility (not including the expansion feature) as of December 31, 2025. The weighted average annual effective rate on the Company's total debt outstanding for the years ended December 31, 2025 and 2024 was 5.6% and 6.5%, respectively.\n\nThe Credit Agreement contains certain customary restrictive loan covenants, including among others, financial covenants that apply a maximum leverage ratio, minimum interest coverage ratio, and maximum annual capital expenditures. The negative covenants limit, subject to various exceptions, the Company’s ability to incur additional indebtedness, create liens on assets, merge, consolidate, liquidate or dissolve any part of the Company, sell assets, change fiscal year, or enter into certain transactions with affiliates and subsidiaries. The Company was in full compliance with the covenants as of December 31, 2025. The Facility also contains customary events of default, representations, and warranties.\n\nAll obligations under the Credit Agreement are unconditionally guaranteed by each of the Company’s existing and future, direct and indirect, material wholly-owned domestic subsidiaries, other than certain excluded subsidiaries, and are collateralized by a first priority lien on substantially all tangible and intangible assets, including intellectual property, and all of the capital stock of the Company and its subsidiaries (limited to 65% of the voting equity of certain subsidiaries).\n\nNote 6 – Leases\n\nThe components of lease expense were as follows (in thousands):\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOperating lease cost\n\n$\n\n7,857\n\n \n\n \n\n$\n\n11,542\n\n \n\n \n\n$\n\n12,671\n\n \n\nShort-term lease cost\n\n \n\n1,703\n\n \n\n \n\n \n\n1,095\n\n \n\n \n\n \n\n981\n\n \n\nVariable lease cost\n\n \n\n4,064\n\n \n\n \n\n \n\n4,817\n\n \n\n \n\n \n\n4,394\n\n \n\nSublease income\n\n \n\n(39\n\n)\n\n \n\n \n\n(524\n\n)\n\n \n\n \n\n(521\n\n)\n\nTotal lease cost\n\n$\n\n13,585\n\n \n\n \n\n$\n\n16,930\n\n \n\n \n\n$\n\n17,525\n\n \n\nAdditional lease information is summarized in the following table (in thousands, except lease term and discount rate):\n\n \n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nCash paid for amounts included in the measurement of\n   operating lease liabilities\n\n \n\n$\n\n10,962\n\n \n\n \n\n$\n\n14,570\n\n \n\nOperating ROU assets obtained in exchange for\n   lease obligations\n\n \n\n$\n\n9,936\n\n \n\n \n\n$\n\n408\n\n \n\nWeighted-average remaining lease term - operating\n   leases (years)\n\n \n\n \n\n9.0\n\n \n\n \n\n \n\n3.7\n\n \n\nWeighted-average discount rate - operating leases\n\n \n\n \n\n5.1\n\n%\n\n \n\n \n\n4.1\n\n%\n\nFuture minimum lease payments under non-cancelable leases as of December 31, 2025 are as follows (in thousands):\n\n \n\n \n\n \n\nOperating Lease\n\n \n\n \n\nTenant Improvement\n\n \n\n \n\nNet Undiscounted\n\n \n\n \n\nSublease\n\n \n\n \n\n \n\nPayments\n\n \n\n \n\nAllowance\n\n \n\n \n\nCash Flows\n\n \n\n \n\nCash Receipts\n\n \n\n2026\n\n \n\n$\n\n7,590\n\n \n\n \n\n$\n\n(17,151\n\n)\n\n \n\n$\n\n(9,561\n\n)\n\n \n\n$\n\n292\n\n \n\n2027\n\n \n\n \n\n8,276\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n8,276\n\n \n\n \n\n \n\n389\n\n \n\n2028\n\n \n\n \n\n6,548\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,548\n\n \n\n \n\n \n\n—\n\n \n\n2029\n\n \n\n \n\n6,625\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,625\n\n \n\n \n\n \n\n—\n\n \n\n2030\n\n \n\n \n\n6,574\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,574\n\n \n\n \n\n \n\n—\n\n \n\nThereafter\n\n \n\n \n\n37,649\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n37,649\n\n \n\n \n\n \n\n—\n\n \n\nTotal\n\n \n\n \n\n73,262\n\n \n\n \n\n \n\n(17,151\n\n)\n\n \n\n \n\n56,111\n\n \n\n \n\n$\n\n681\n\n \n\nLess imputed interest\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(19,216\n\n)\n\n \n\n \n\n \n\nPresent value of lease liabilities\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n36,895\n\n \n\n \n\n \n\n \n\n \n\n46\n\n \n\nLease balances are as follows (in thousands):\n\n \n\n \n\n \n\nAs of\n\n \n\n \n\n \n\nDecember 31, 2025\n\n \n\nOperating lease ROU assets\n\n \n\n$\n\n30,662\n\n \n\n \n\n \n\n \n\n \n\nShort-term operating lease liabilities (1)\n\n \n\n$\n\n7,383\n\n \n\nNon-current operating lease liabilities\n\n \n\n \n\n29,512\n\n \n\nTotal operating lease liabilities\n\n \n\n$\n\n36,895\n\n \n\n(1)\nIncluded in accrued expenses and other current liabilities in the Consolidated Balance Sheets.\n\nThe Company’s leases do not contain residual value guarantees, material restrictions or covenants. During the year ended December 31, 2025, the Company subleased one of its facilities in San Francisco, California. The sublease agreement expires in 2027.\n\nDuring the year ended December 31, 2024, the Company recorded $3.6 million of ROU asset impairments and $1.0 million of leasehold improvements impairments related to closure of the 10th and 11th floors of its offices located in San Francisco, California. During the year ended December 31, 2023, the Company recorded $1.9 million of ROU asset impairments and accelerated amortization and $0.7 million of leasehold improvements impairments related to closing various offices. The impairments and accelerated amortization are included in restructuring costs in the Consolidated Statements of Operations. The leasehold improvements were originally recorded in property and equipment, net in the Consolidated Balance Sheets. As a result of the impairments, the ROU asset and leasehold improvements were required to be recorded at their estimated fair value as Level 3 non-financial assets. The fair value of the asset group was determined using a discounted cash flow model, which required the use of estimates, including projected cash flows for the related assets, the selection of a discount rate used in the model, and regional real estate industry data. The fair value of the asset group was allocated to the ROU asset and leasehold improvements based on their relative carrying values.\n\nNote 7 – Derivatives and Hedging\n\nThe Company enters into a limited number of foreign currency forward exchange contracts to mitigate the effects of adverse fluctuations in foreign currency exchange rates on transactions entered into in the normal course of business that are denominated in foreign currencies that differ from the local functional currency. These contracts generally have short durations and are recorded at fair value with both realized and unrealized gains and losses recorded in other income, net in the Consolidated Statements of Operations because the Company does not designate these contracts as hedges for accounting purposes.\n\nDuring 2025, the Company entered into thirteen foreign currency forward exchange contracts, all of which settled by December 31, 2025. Accordingly, as of December 31, 2025, there are no amounts recorded in the Consolidated Balance Sheets. During 2024, the Company entered into eleven foreign currency forward exchange contracts, all of which settled by December 31, 2024. Accordingly, as of December 31, 2024, there are no amounts recorded in the Consolidated Balance Sheets. During 2023, the Company entered into twelve foreign currency forward exchange contracts, all of which settled by December 31, 2023.\n\nThe Company’s derivative counterparties are investment grade financial institutions. The Company does not have any collateral arrangements with its derivative counterparties and the derivative contracts do not contain credit risk related contingent features. The table below provides information regarding gains (losses) recognized in the Consolidated Statements of Operations for the derivative contracts for the periods indicated (in thousands):\n\n \n\n \n\n \n\nFor the Year Ended December 31,\n\n \n\nAmount recorded in:\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nOther income, net\n\n \n\n \n\n261\n\n \n\n \n\n \n\n81\n\n \n\n \n\n \n\n(13\n\n)\n\nTotal\n\n \n\n$\n\n261\n\n \n\n \n\n$\n\n81\n\n \n\n \n\n$\n\n(13\n\n)\n\n \n\nNote 8 – Fair Value Measurements\n\nThe Company has certain financial assets which have been classified as either Level 1, 2, or 3 within the fair value hierarchy as described below.\n\nLevel 1 — Fair value based on quoted prices in active markets for identical assets or liabilities.\n\nLevel 2 — Fair value based on inputs other than Level 1 inputs that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.\n\n47\n\n \n\nLevel 3 — Fair value based on unobservable inputs that are supported by little or no market activity and such inputs are significant to the fair value of the assets or liabilities.\n\nThe following table represents the Company’s fair value hierarchy for its financial assets that are measured at fair value on a recurring basis (in thousands):\n\n \n\n \n\n \n\nAs of December 31, 2025\n\n \n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nTotal\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMoney market funds (1)\n\n \n\n$\n\n64,743\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n64,743\n\n \n\nMarketable investments (3)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n16,722\n\n \n\n \n\n \n\n16,722\n\n \n\nTotal Assets\n\n \n\n$\n\n64,743\n\n \n\n \n\n$\n\n16,722\n\n \n\n \n\n$\n\n81,465\n\n \n\n \n\n \n\n \n\nAs of December 31, 2024\n\n \n\n \n\n \n\nLevel 1\n\n \n\n \n\nLevel 2\n\n \n\n \n\nTotal\n\n \n\nAssets:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nMoney market funds (2)\n\n \n\n$\n\n52,395\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n52,395\n\n \n\nMarketable investments (3)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n12,180\n\n \n\n \n\n \n\n12,180\n\n \n\nTotal Assets\n\n \n\n$\n\n52,395\n\n \n\n \n\n$\n\n12,180\n\n \n\n \n\n$\n\n64,575\n\n \n\n(1)\nU.S. based funds of $17.1 million are included in cash and cash equivalents and non-U.S. based funds of $47.6 million are included in marketable investments in the Consolidated Balance Sheets.\n\n(2)\nU.S. based funds of $16.0 million are included in cash and cash equivalents and non-U.S. based funds of $36.4 million are included in marketable investments in the Consolidated Balance Sheets.\n\n(3)\nMarketable investments have been initially valued at the transaction price and subsequently valued, at the end of the reporting period, utilizing third party pricing services or other market observable data. The pricing services utilize industry standard valuation methods, including both income and market based approaches and observable market inputs to determine value. These observable market inputs include reportable trades, benchmark yields, credit spreads, broker/dealer quotes, bids, offers, current spot rates and other industry and economic events.\n\nDuring the years ended December 31, 2025 and 2024, the Company did not transfer assets between levels of the fair value hierarchy. Additionally, there have been no changes to the valuation techniques for Level 2 assets.\n\nNote 9 – Non-Marketable Investments\n\nAt December 31, 2025 and 2024, the carrying value of the Company’s non-marketable investments, which were composed of interests in technology-related private equity funds and an interest in a standalone real-time feedback company (see Note 2 - Divestiture), was $3.2 million, of which $0.6 million is included in prepaid expenses and other current assets and $2.6 million is included in other assets in the Consolidated Balance Sheets.\n\nOne of the Company’s investments, with a book value of $2.6 million at December 31, 2025 is being accounted for using the cost method and, accordingly, is valued at cost less impairments, if any. The Company’s other investment is accounted for using the equity method. Accordingly, the Company records its share of the investee’s operating results each period, which are included in gains on investments, net in the Consolidated Statement of Operations. Gains from non-marketable investments were immaterial for the year ended 2025. The Company recorded $0.8 million and $0.2 million in gains from its non-marketable investments for the years ended December 31, 2024 and 2023, respectively.\n\nThe Company uses the cumulative earnings approach to classify distributions received from equity method investments. During the year ended December 31, 2025, $1.4 million was distributed from the funds to the Company. This amount was included within other investing activity in the Consolidated Statements of Cash Flows as it was considered a return on investment. During the years ended December 31, 2024 and 2023, no distributions were received from the funds.\n\nNote 10 – Income Taxes\n\nIncome (loss) before income taxes consists of the following (in thousands):\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nDomestic\n\n \n\n$\n\n(123,750\n\n)\n\n \n\n$\n\n(1,775\n\n)\n\n \n\n$\n\n(4,058\n\n)\n\nForeign\n\n \n\n \n\n4,341\n\n \n\n \n\n \n\n4,412\n\n \n\n \n\n \n\n10,343\n\n \n\nTotal\n\n \n\n$\n\n(119,409\n\n)\n\n \n\n$\n\n2,637\n\n \n\n \n\n$\n\n6,285\n\n \n\n \n\n48\n\n \n\nThe components of the income tax expense (benefit) are as follows (in thousands):\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nCurrent:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n$\n\n9\n\n \n\n \n\n$\n\n2,874\n\n \n\n \n\n$\n\n3,867\n\n \n\nState\n\n \n\n \n\n242\n\n \n\n \n\n \n\n613\n\n \n\n \n\n \n\n1,922\n\n \n\nForeign\n\n \n\n \n\n3,629\n\n \n\n \n\n \n\n4,955\n\n \n\n \n\n \n\n2,907\n\n \n\nTotal current\n\n \n\n \n\n3,880\n\n \n\n \n\n \n\n8,442\n\n \n\n \n\n \n\n8,696\n\n \n\nDeferred:\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nFederal\n\n \n\n \n\n(1,922\n\n)\n\n \n\n \n\n(636\n\n)\n\n \n\n \n\n(3,872\n\n)\n\nState\n\n \n\n \n\n(946\n\n)\n\n \n\n \n\n763\n\n \n\n \n\n \n\n(1,597\n\n)\n\nForeign\n\n \n\n \n\n(1,061\n\n)\n\n \n\n \n\n(185\n\n)\n\n \n\n \n\n8\n\n \n\nTotal deferred\n\n \n\n \n\n(3,929\n\n)\n\n \n\n \n\n(58\n\n)\n\n \n\n \n\n(5,461\n\n)\n\nIncome tax expense (benefit)\n\n \n\n$\n\n(49\n\n)\n\n \n\n$\n\n8,384\n\n \n\n \n\n$\n\n3,235\n\n \n\n \n\nA reconciliation of the federal statutory rate to Forrester’s effective tax rate is as follows (dollars in thousands):\n\n \n\n \n\nYear Ended December 31,\n\n \n\n \n\n \n\n2025\n\n \n\nUS federal statutory income tax rate\n\n \n\n$\n\n(25,076\n\n)\n\n \n\n \n\n21.0\n\n %\n\nDomestic state and local income taxes, net of federal effect (1)\n\n \n\n \n\n(563\n\n)\n\n \n\n \n\n0.5\n\n \n\nForeign tax effects\n\n \n\n \n\n1,658\n\n \n\n \n\n \n\n(1.5\n\n)\n\nNontaxable or nondeductible items\n\n \n\n \n\n \n\n \n\n \n\n \n\nStock compensation\n\n \n\n \n\n1,597\n\n \n\n \n\n \n\n(1.3\n\n)\n\nGoodwill impairment\n\n \n\n \n\n22,072\n\n \n\n \n\n \n\n(18.5\n\n)\n\nOther adjustments\n\n \n\n \n\n263\n\n \n\n \n\n \n\n(0.2\n\n)\n\nEffective tax rate\n\n \n\n$\n\n(49\n\n)\n\n \n\n \n\n(0.0\n\n)\n\n(1)\nThe state and localities that contribute to the majority (greater than 50%) of the tax effect in this category include California, New York and New York City.\n\n \n\n \n\nYears Ended December 31,\n\n \n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nIncome tax provision at federal statutory rate\n\n \n\n \n\n21.0\n\n %\n\n \n\n \n\n21.0\n\n %\n\nIncrease (decrease) in tax resulting from:\n\n \n\n \n\n \n\n \n\n \n\n \n\nState tax provision, net of federal benefit\n\n \n\n \n\n40.6\n\n \n\n \n\n \n\n8.1\n\n \n\nForeign tax rate differential\n\n \n\n \n\n37.7\n\n \n\n \n\n \n\n2.7\n\n \n\nStock compensation\n\n \n\n \n\n66.6\n\n \n\n \n\n \n\n17.5\n\n \n\nWithholding taxes\n\n \n\n \n\n31.7\n\n \n\n \n\n \n\n6.2\n\n \n\nNon-deductible expenses\n\n \n\n \n\n23.1\n\n \n\n \n\n \n\n8.1\n\n \n\nGoodwill related to sale of FeedbackNow\n\n \n\n \n\n93.9\n\n \n\n \n\n \n\n—\n\n \n\nPermanent differences\n\n \n\n \n\n(0.1\n\n)\n\n \n\n \n\n(1.7\n\n)\n\nChange in valuation allowance\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n0.5\n\n \n\nForeign subsidiary income subject to U.S. tax\n\n \n\n \n\n(1.6\n\n)\n\n \n\n \n\n1.2\n\n \n\nForeign-derived intangible income benefit\n\n \n\n \n\n1.1\n\n \n\n \n\n \n\n(3.8\n\n)\n\nChange in tax legislation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(8.1\n\n)\n\nForeign exchange gain (loss) on previously taxed earnings and profits\n\n \n\n \n\n(0.5\n\n)\n\n \n\n \n\n1.6\n\n \n\nCurrency translation gain\n\n \n\n \n\n3.6\n\n \n\n \n\n \n\n0.7\n\n \n\nOther, net\n\n \n\n \n\n0.4\n\n \n\n \n\n \n\n(2.5\n\n)\n\nEffective tax rate\n\n \n\n \n\n317.9\n\n %\n\n \n\n \n\n51.5\n\n %\n\n \n\n49\n\n \n\nThe significant items impacting the effective tax rate during 2025 as compared to 2024 are primarily the goodwill impairment charges in 2025, which are not deductible for tax purposes, in addition to transactions in 2024 that increased the Company’s 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 NOL carryforwards due to the dissolution of a domestic subsidiary.\n\nThe components of deferred income taxes are as follows (in thousands):\n\n \n\n \n\n \n\nAs of December 31,\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nNon-deductible reserves and accruals\n\n \n\n$\n\n3,119\n\n \n\n \n\n$\n\n1,776\n\n \n\nNet operating loss and other carryforwards\n\n \n\n \n\n4,476\n\n \n\n \n\n \n\n5,525\n\n \n\nStock compensation\n\n \n\n \n\n2,123\n\n \n\n \n\n \n\n2,085\n\n \n\nDepreciation and amortization\n\n \n\n \n\n2,296\n\n \n\n \n\n \n\n3,485\n\n \n\nLease liability\n\n \n\n \n\n8,586\n\n \n\n \n\n \n\n8,562\n\n \n\nGross deferred tax asset\n\n \n\n \n\n20,600\n\n \n\n \n\n \n\n21,433\n\n \n\nLess - valuation allowance\n\n \n\n \n\n(174\n\n)\n\n \n\n \n\n(1,055\n\n)\n\nSub-total\n\n \n\n \n\n20,426\n\n \n\n \n\n \n\n20,378\n\n \n\nOther liabilities\n\n \n\n \n\n(596\n\n)\n\n \n\n \n\n(2,553\n\n)\n\nGoodwill and intangible assets\n\n \n\n \n\n(11,145\n\n)\n\n \n\n \n\n(13,837\n\n)\n\nOperating lease right-of-use assets\n\n \n\n \n\n(6,892\n\n)\n\n \n\n \n\n(5,822\n\n)\n\nDeferred commissions\n\n \n\n \n\n(5,842\n\n)\n\n \n\n \n\n(6,071\n\n)\n\nNet deferred tax liability\n\n \n\n$\n\n(4,049\n\n)\n\n \n\n$\n\n(7,905\n\n)\n\nAs of December 31, 2025 and 2024, long-term net deferred tax assets were $1.8 million and $0.8 million, respectively, and are included in other assets in the Consolidated Balance Sheets. Long-term net deferred tax liabilities were $5.9 million and $8.7 million at December 31, 2025 and 2024, respectively, and are included in non-current liabilities in the Consolidated Balance Sheets.\n\nAs of December 31, 2025 and 2024, the Company has fully utilized its U.S. federal net operating loss carryforwards. As of December 31, 2025 and 2024 the Company has state net operating loss carryforwards of approximately $5.1 million and $4.6 million, respectively. The state net operating loss carryforwards will begin to expire in 2038 if not utilized. In addition, the Company has no U.S. federal or state capital loss carryforwards.\n\nAs of December 31, 2025 and 2024, the Company has foreign net operating loss carryforwards of approximately $15.3 million and $17.4 million, respectively, which can be carried forward indefinitely.\n\nThe Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is needed for some portion or all of a net deferred income tax asset. Judgment is required in considering the relative impact of negative and positive evidence. In arriving at these judgments, the weight given to the potential effect of negative and positive evidence is commensurate with the extent to which it can be objectively verified. Although realization is not assured, based upon the Company’s historical taxable income and projections of the Company’s future taxable income over the periods during which the deferred tax assets are deductible and the carryforwards expire, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the existing valuation allowances, as discussed below.\n\nAs of December 31, 2025, the Company maintained a valuation allowance of approximately $0.2 million, primarily related to foreign net operating loss carryforwards the Company believes to be unrealizable. As of December 31, 2024 and 2023, the Company maintained a valuation allowance of approximately $1.1 million, primarily relating to foreign net operating loss carryforwards from an acquisition.\n\nThe following table provides a summary of the changes in the deferred tax valuation allowance for the years ended December 31, 2025, 2024, and 2023 (in thousands):\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nDeferred tax valuation allowance at January 1\n\n \n\n$\n\n1,055\n\n \n\n \n\n$\n\n1,065\n\n \n\n \n\n$\n\n989\n\n \n\nAdditions\n\n \n\n \n\n44\n\n \n\n \n\n \n\n19\n\n \n\n \n\n \n\n39\n\n \n\nDeductions\n\n \n\n \n\n(992\n\n)\n\n \n\n \n\n(8\n\n)\n\n \n\n \n\n—\n\n \n\nChange in tax legislation\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(4\n\n)\n\nTranslation adjustments\n\n \n\n \n\n67\n\n \n\n \n\n \n\n(21\n\n)\n\n \n\n \n\n41\n\n \n\nDeferred tax valuation allowance at December 31\n\n \n\n$\n\n174\n\n \n\n \n\n$\n\n1,055\n\n \n\n \n\n$\n\n1,065\n\n \n\n \n\n50\n\n \n\nThe Company will generally be free of additional U.S. federal tax consequences on additional unremitted foreign earnings that have been subject to U.S. tax or would be eligible for a dividends received deduction for earnings distributed after January 1, 2018. Notwithstanding the U.S. taxation of these amounts, the Company intends to continue to invest all of its unremitted earnings of $46.8 million, as well as the capital in these subsidiaries, indefinitely outside of the U.S. unless there are opportunities in the future to repatriate in a tax efficient manner. The Company does not expect to incur any material, additional taxes related to such amounts.\n\nThe Company utilizes a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken on a tax return. The first step is a determination of whether the tax position should be recognized in the financial statements. The second step determines the measurement of the tax position. The Company had no recorded uncertain tax positions as of December 31, 2025, 2024, and 2023.\n\nThe Company files income tax returns in the U.S. and in foreign jurisdictions. Generally, the Company is no longer subject to U.S., state, local, and foreign income tax examinations by tax authorities in its major jurisdictions for years before 2018, except to the extent of net operating loss and tax credit carryforwards from those years. Major taxing jurisdictions include the U.S., the Netherlands, the United Kingdom, Germany, and Switzerland. As of December 31, 2025, the Company has no jurisdictions under audit.\n\nThe components of cash income taxes paid, net of refunds, are as follows (in thousands):\n\n \n\n \n\n2025\n\n \n\nFederal\n\n \n\n$\n\n3,500\n\n \n\nDomestic, state and local\n\n \n\n \n\n694\n\n \n\nForeign\n\n \n\n \n\n \n\nIndia\n\n \n\n \n\n862\n\n \n\nSwitzerland\n\n \n\n \n\n583\n\n \n\nOther foreign jurisdictions\n\n \n\n \n\n1,595\n\n \n\nTotal\n\n \n\n$\n\n7,234\n\n \n\n \n\nNote 11 – Stockholders’ Equity\n\nPreferred Stock\n\nForrester has authorized 500,000 shares of $0.01 par value preferred stock. The Board of Directors has full authority to issue this stock and to fix the voting powers, preferences, rights, qualifications, limitations, or restrictions thereof, including dividend rights, conversion rights, redemption privileges, liquidation preferences, and the number of shares constituting any series or designation of such series.\n\nTreasury Stock\n\nAs of December 31, 2025, Forrester’s Board of Directors has authorized an aggregate $610.0 million to purchase common stock under the Company’s stock repurchase program. The shares repurchased may be used, among other things, in connection with Forrester’s equity incentive and purchase plans. As of December 31, 2025, the Company had repurchased approximately 18.2 million shares of common stock at an aggregate cost of $532.5 million.\n\nDividends\n\nThe Company does not currently pay cash dividends on its common stock.\n\nEquity Plans\n\nThe Company maintains the Forrester Research, Inc. Amended and Restated Equity Incentive Plan (the “Equity Incentive Plan”), as most recently amended and restated by our stockholders in May 2023. The amendment and restatement resulted in (1) extending the term of the plan for an additional 10 years until May 2033, (2) increasing the number of shares issuable under the plan by 3,500,000 shares, and (3) establishing a maximum amount of awards issuable under the plan to the Company’s non-employee directors.\n\nThe Equity Incentive Plan provides for the issuance of stock-based awards, including incentive stock options (“ISOs”), non-qualified stock options (“NSOs”), and restricted stock units (“RSUs”) to purchase up to 9,930,000 shares authorized in the plan plus the number of unused shares from prior plans (not to exceed 2,500,000 shares). Under the terms of the Equity Incentive Plan, ISOs may not be granted at less than fair market value on the date of grant (and in no event less than par value). Options and RSUs generally vest annually over four years and options expire after 10 years. No future awards can be granted or issued under prior plans\n\n51\n\n \n\nand there is a maximum amount of awards issuable under the plan to the Company’s non-employee directors. RSUs granted to non-employee directors vest quarterly over one year. Options and RSUs granted under the Equity Incentive Plan immediately vest upon certain events, as described in the plan. As of December 31, 2025, approximately 2.4 million shares were available for future grant of awards under the Equity Incentive Plan.\n\nRestricted Stock Units\n\nRestricted stock units represent the right to receive one share of Forrester common stock when the restrictions lapse and the vesting conditions are met. RSUs are valued on the date of grant based upon the value of the Company’s stock on the date of grant less the present value of dividends expected to be paid during the requisite service period, if any. Shares of Forrester’s common stock are delivered to the grantee upon vesting, subject to a reduction of shares for payment of withholding taxes. The weighted average grant date fair value for RSUs granted in 2025, 2024, and 2023 was $9.42, $21.29, and $32.82, respectively. The value of RSUs vested and converted to common stock, based on the value of Forrester’s common stock on the date of vesting, was $4.2 million, $8.6 million, and $8.8 million during 2025, 2024, and 2023, respectively.\n\nRSU activity for the year ended December 31, 2025 is presented below (in thousands, except per share data):\n\n \n\n \n\n \n\n \n\n \n\n \n\nWeighted-\n\n \n\n \n\n \n\n \n\n \n\n \n\nAverage\n\n \n\n \n\n \n\nNumber of\n\n \n\n \n\nGrant Date\n\n \n\n \n\n \n\nShares\n\n \n\n \n\nFair Value\n\n \n\nUnvested at December 31, 2024\n\n \n\n \n\n1,253\n\n \n\n \n\n$\n\n27.42\n\n \n\nGranted\n\n \n\n \n\n1,313\n\n \n\n \n\n \n\n9.42\n\n \n\nVested\n\n \n\n \n\n(393\n\n)\n\n \n\n \n\n28.81\n\n \n\nForfeited\n\n \n\n \n\n(289\n\n)\n\n \n\n \n\n22.04\n\n \n\nUnvested at December 31, 2025\n\n \n\n \n\n1,884\n\n \n\n \n\n$\n\n15.41\n\n \n\nStock Options\n\nStock option activity for the year ended December 31, 2025 is presented below (in thousands, except per share data and contractual term):\n\n \n\n \n\n \n\n \n\n \n\nWeighted -\n\n \n\n \n\nWeighted -\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAverage\n\n \n\n \n\nAverage\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nExercise\n\n \n\n \n\nRemaining\n\n \n\n \n\nAggregate\n\n \n\n \n\n \n\nNumber\n\n \n\n \n\nPrice Per\n\n \n\n \n\nContractual\n\n \n\n \n\nIntrinsic\n\n \n\n \n\n \n\nof Shares\n\n \n\n \n\nShare\n\n \n\n \n\nTerm (in years)\n\n \n\n \n\nValue\n\n \n\nOutstanding at December 31, 2024\n\n \n\n \n\n167\n\n \n\n \n\n$\n\n33.29\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nGranted\n\n \n\n \n\n303\n\n \n\n \n\n \n\n9.36\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nForfeited\n\n \n\n \n\n(122\n\n)\n\n \n\n \n\n20.29\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nOutstanding at December 31, 2025\n\n \n\n \n\n348\n\n \n\n \n\n$\n\n16.99\n\n \n\n \n\n \n\n8.03\n\n \n\n \n\n$\n\n—\n\n \n\nExercisable at December 31, 2025\n\n \n\n \n\n69\n\n \n\n \n\n$\n\n33.41\n\n \n\n \n\n \n\n4.40\n\n \n\n \n\n$\n\n—\n\n \n\nVested and expected to vest at December 31, 2025\n\n \n\n \n\n348\n\n \n\n \n\n$\n\n16.99\n\n \n\n \n\n \n\n8.03\n\n \n\n \n\n$\n\n—\n\n \n\nNo stock options were exercised during 2025 or 2024. The total intrinsic value of options exercised during 2023 was $6 thousand.\n\nEmployee Stock Purchase Plan\n\nThe Company's Third Amended and Restated Employee Stock Purchase Plan (the \"Stock Purchase Plan\") provides for the issuance of up to 0.8 million shares of common stock and as of December 31, 2025, approximately 0.3 million shares remain available for issuance. With certain limited exceptions, all employees of Forrester whose customary employment is more than 20 hours per week, including officers and directors who are employees, are eligible to participate in the Stock Purchase Plan. Purchase periods under the Stock Purchase Plan are six months in length and commence on each successive March 1 and September 1. Stock purchased under the Stock Purchase Plan is required to be held for one year before it is able to be sold. During each purchase period the maximum number of shares of common stock that may be purchased by an employee is limited to the number of shares equal to $12,500 divided by the fair market value of a share of common stock on the first day of the purchase period. An employee may elect to have up to 10% deducted from his or her compensation for the purpose of purchasing shares under the Stock Purchase Plan. The price at which the employee’s shares are purchased is the lower of: (1) 85% of the closing price of the common stock on the day that the purchase period commences, or (2) 85% of the closing price of the common stock on the day that the purchase period terminates.\n\n52\n\n \n\nShares purchased by employees under the Stock Purchase Plan are as follows (in thousands, except per share data):\n\n \n\nShares\n\n \n\n \n\nPurchase\n\n \n\nPurchase Period Ended\n\nPurchased\n\n \n\n \n\nPrice\n\n \n\nFebruary 28, 2025\n\n \n\n70\n\n \n\n \n\n$\n\n9.42\n\n \n\nAugust 31, 2025\n\n \n\n73\n\n \n\n \n\n$\n\n8.28\n\n \n\nFebruary 29, 2024\n\n \n\n73\n\n \n\n \n\n$\n\n17.14\n\n \n\nAugust 31, 2024\n\n \n\n72\n\n \n\n \n\n$\n\n16.30\n\n \n\nAccumulated Other Comprehensive Loss (“AOCL”)\n\nThe components of accumulated other comprehensive loss are as follows (in thousands):\n\n \n\n \n\n \n\nMarketable\nInvestments\n\n \n\n \n\nTranslation\nAdjustment\n\n \n\n \n\nTotal AOCL\n\n \n\nBalance at December 31, 2022\n\n \n\n$\n\n(159\n\n)\n\n \n\n$\n\n(7,759\n\n)\n\n \n\n$\n\n(7,918\n\n)\n\nForeign currency translation (1)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n3,248\n\n \n\n \n\n \n\n3,248\n\n \n\nUnrealized gain, net of tax of $(33)\n\n \n\n \n\n99\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n99\n\n \n\nBalance at December 31, 2023\n\n \n\n \n\n(60\n\n)\n\n \n\n \n\n(4,511\n\n)\n\n \n\n \n\n(4,571\n\n)\n\nForeign currency translation (1)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(3,496\n\n)\n\n \n\n \n\n(3,496\n\n)\n\nReclassification adjustment for write-off of foreign currency translation loss (2)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n232\n\n \n\n \n\n \n\n232\n\n \n\nUnrealized gain, net of tax of $(30)\n\n \n\n \n\n89\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n89\n\n \n\nBalance at December 31, 2024\n\n \n\n \n\n29\n\n \n\n \n\n \n\n(7,775\n\n)\n\n \n\n \n\n(7,746\n\n)\n\nForeign currency translation (1)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n6,622\n\n \n\n \n\n \n\n6,622\n\n \n\nUnrealized gain, net of tax of $(10)\n\n \n\n \n\n31\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n31\n\n \n\nBalance at December 31, 2025\n\n \n\n$\n\n60\n\n \n\n \n\n$\n\n(1,153\n\n)\n\n \n\n$\n\n(1,093\n\n)\n\n(1)\nThe Company does not record tax provisions or benefits for the net changes in foreign currency translation adjustments as it intends to permanently reinvest undistributed earnings of its foreign subsidiaries.\n\n(2)\nThe reclassification adjustment for the write-off of a foreign currency translation loss relates to the liquidation of a non-U.S. subsidiary during 2024 and is reported in restructuring costs in the Consolidated Statements of Operations.\n\nNote 12 – Employee Pension Plans\n\nForrester sponsors several defined contribution plans for eligible employees. Generally, the defined contribution plans have funding provisions which, in certain situations, require contributions based upon formulas relating to employee wages or the level of elective participant contributions, as well as allow for additional discretionary contributions. Further, certain plans contain vesting provisions. Forrester’s contributions to these plans totaled approximately $6.5 million, $7.2 million, and $7.8 million for the years ended December 31, 2025, 2024, and 2023, respectively.\n\nNote 13 – Restructuring\n\nIn February 2024, the Company implemented a reduction in its workforce of approximately 3% across various geographies and functions to better align its cost structure with the revenue outlook for the year. The Company recorded $0.7 million of severance and related costs for this action during the fourth quarter of 2023, and $2.8 million during the first quarter of 2024. The Company also recorded a restructuring charge of $4.0 million during 2024 related to closing one floor of its offices located in San Francisco, California, of which $3.4 million related to an impairment of a right-of-use asset and $0.6 million related to an impairment of leasehold improvements. All costs have been paid as of December 31, 2025.\n\nIn January 2025, the Company implemented a reduction in its workforce of approximately 6% across various geographies and functions to better align its cost structure with the revenue outlook for the year. The Company recorded $4.2 million of severance and related costs for this action during the fourth quarter of 2024 and $1.8 million during 2025. The remaining accrued restructuring and related costs as of December 31, 2025 will be paid during the first quarter of 2026.\n\n53\n\n \n\nThe following table rolls forward the activity in the restructuring accrual for the January 2025 action for the year ended December 31, 2025 (in thousands):\n\nAccrual at December 31, 2024\n\n$\n\n4,132\n\n \n\nAdditional restructuring and related costs\n\n \n\n1,767\n\n \n\nNon-cash charge (included above)\n\n \n\n(319\n\n)\n\nCash payments\n\n \n\n(5,589\n\n)\n\nForeign currency effect\n\n \n\n38\n\n \n\nAccrual at December 31, 2025\n\n$\n\n29\n\n \n\nIn February 2026, the Company implemented a reduction in its workforce of approximately 8% across various geographies and functions to better align its cost structure with the revenue outlook for the year. The Company anticipates total costs for this action to be in a range of $10.0 million to $10.5 million related principally to cash severance and related benefit costs for terminated employees, with the majority of the cash costs to be expended in 2026. Approximately $8.8 million of severance and related costs for this action were recorded during the fourth quarter of 2025. In addition, the Company expects to incur approximately $3.0 million for contract termination costs. Approximately $1.1 million for contract termination costs were recorded during the fourth quarter of 2025. The Company has also approved plans to close certain of its smaller offices both inside and outside the United States.\n\nNote 14 – Operating Segment and Enterprise Wide Reporting\n\nThe Company’s chief operating decision-maker is the chief executive officer and the chief financial officer. The Company operates in three segments: Research, Consulting, and Events. These segments, which are also the Company's reportable segments, are based on the management structure of the Company and how the chief operating decision maker uses financial information to evaluate performance and determine how to allocate resources. The Company’s products and services are delivered through each segment as described below.\n\nThe Research segment includes the revenues from all of the Company's research products as well as consulting revenues from advisory services (such as speeches and advisory days) delivered by the Company's research organization. Research segment costs include the cost of the organizations responsible for developing and delivering these products in addition to the cost of the product management organization that is responsible for product pricing and packaging and the launch of new products. As of January 1, 2025, the Company realigned its citations team costs such that these costs are now reported as a direct expense of the Research segment, whereas they were previously reported in selling, marketing, administrative and other expenses in the tables below. Prior period amounts have been recast to conform to the current presentation.\n\nThe Consulting segment includes the revenues and the related costs of the Company's project consulting organization. The project consulting organization delivers a majority of the Company's project consulting revenue. As of January 1, 2025, the Company realigned its content marketing partner costs such that these costs are now reported as a direct expense of the Consulting segment, whereas they were previously reported in selling, marketing, administrative and other expenses in the tables below. Prior period amounts have been recast to conform to the current presentation.\n\nThe Events segment includes the revenues and the costs of the organization responsible for developing and hosting the Company's events.\n\nThe Company evaluates reportable segment performance and allocates 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 gains on investments. The accounting policies used by the segments are the same as those used in the consolidated financial statements. The Company does not review or evaluate assets as part of segment performance. Accordingly, the Company does not identify or allocate assets by reportable segment.\n\n54\n\n \n\nThe Company provides information by reportable segment in the tables below (in thousands):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch\nSegment\n\n \n\n \n\nConsulting\nSegment\n\n \n\n \n\nEvents\nSegment\n\n \n\n \n\nConsolidated\n\n \n\nYear Ended December 31, 2025\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch revenues\n\n \n\n$\n\n295,607\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n295,607\n\n \n\nConsulting revenues\n\n \n\n \n\n21,963\n\n \n\n \n\n \n\n66,229\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n88,192\n\n \n\nEvents revenues\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n13,089\n\n \n\n \n\n \n\n13,089\n\n \n\nTotal segment revenues\n\n \n\n \n\n317,570\n\n \n\n \n\n \n\n66,229\n\n \n\n \n\n \n\n13,089\n\n \n\n \n\n \n\n396,888\n\n \n\nSegment expenses (1):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  Compensation, benefits and related costs\n\n \n\n \n\n(92,500\n\n)\n\n \n\n \n\n(28,411\n\n)\n\n \n\n \n\n(5,376\n\n)\n\n \n\n \n\n(126,287\n\n)\n\n  Direct costs of Events\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(13,140\n\n)\n\n \n\n \n\n(13,140\n\n)\n\n  Professional services\n\n \n\n \n\n(6,837\n\n)\n\n \n\n \n\n(3,453\n\n)\n\n \n\n \n\n(58\n\n)\n\n \n\n \n\n(10,348\n\n)\n\n  Billable expenses\n\n \n\n \n\n(407\n\n)\n\n \n\n \n\n(5,993\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(6,400\n\n)\n\n  Travel and entertainment\n\n \n\n \n\n(1,950\n\n)\n\n \n\n \n\n(518\n\n)\n\n \n\n \n\n(162\n\n)\n\n \n\n \n\n(2,630\n\n)\n\n  Software\n\n \n\n \n\n(1,399\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(56\n\n)\n\n \n\n \n\n(1,455\n\n)\n\n  Other segment expenses (2)\n\n \n\n \n\n(168\n\n)\n\n \n\n \n\n(34\n\n)\n\n \n\n \n\n(37\n\n)\n\n \n\n \n\n(239\n\n)\n\nTotal segment expenses\n\n \n\n \n\n(103,261\n\n)\n\n \n\n \n\n(38,409\n\n)\n\n \n\n \n\n(18,829\n\n)\n\n \n\n \n\n(160,499\n\n)\n\nSegment operating income (loss)\n\n \n\n$\n\n214,309\n\n \n\n \n\n$\n\n27,820\n\n \n\n \n\n$\n\n(5,740\n\n)\n\n \n\n \n\n236,389\n\n \n\nSelling, marketing, administrative and other expenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(218,386\n\n)\n\nAmortization of intangible assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(8,745\n\n)\n\nRestructuring costs\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11,724\n\n)\n\nGoodwill impairment\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(110,707\n\n)\n\nInterest expense, credit loss expense on note receivable, other income, and gains on investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(6,236\n\n)\n\nLoss before income taxes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n(119,409\n\n)\n\n \n\n(1)\nThe significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.\n\n(2)\nOther segment expenses for each reportable segment includes office supplies, maintenance, and training expenses.\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch\nSegment\n\n \n\n \n\nConsulting\nSegment\n\n \n\n \n\nEvents\nSegment\n\n \n\n \n\nConsolidated\n\n \n\nYear Ended December 31, 2024\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch revenues\n\n \n\n$\n\n316,739\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n316,739\n\n \n\nConsulting revenues\n\n \n\n \n\n21,095\n\n \n\n \n\n \n\n76,159\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n97,254\n\n \n\nEvents revenues\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n18,477\n\n \n\n \n\n \n\n18,477\n\n \n\nTotal segment revenues\n\n \n\n \n\n337,834\n\n \n\n \n\n \n\n76,159\n\n \n\n \n\n \n\n18,477\n\n \n\n \n\n \n\n432,470\n\n \n\nSegment expenses (1):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  Compensation, benefits and related costs\n\n \n\n \n\n(100,995\n\n)\n\n \n\n \n\n(30,433\n\n)\n\n \n\n \n\n(5,567\n\n)\n\n \n\n \n\n(136,995\n\n)\n\n  Direct costs of Events\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(13,434\n\n)\n\n \n\n \n\n(13,434\n\n)\n\n  Professional services\n\n \n\n \n\n(10,449\n\n)\n\n \n\n \n\n(1,735\n\n)\n\n \n\n \n\n(74\n\n)\n\n \n\n \n\n(12,258\n\n)\n\n  Billable expenses\n\n \n\n \n\n(613\n\n)\n\n \n\n \n\n(7,927\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(8,540\n\n)\n\n  Travel and entertainment\n\n \n\n \n\n(1,830\n\n)\n\n \n\n \n\n(393\n\n)\n\n \n\n \n\n(104\n\n)\n\n \n\n \n\n(2,327\n\n)\n\n  Software\n\n \n\n \n\n(1,740\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(38\n\n)\n\n \n\n \n\n(1,778\n\n)\n\n  Other segment expenses (2)\n\n \n\n \n\n(397\n\n)\n\n \n\n \n\n(25\n\n)\n\n \n\n \n\n(33\n\n)\n\n \n\n \n\n(455\n\n)\n\nTotal segment expenses\n\n \n\n \n\n(116,024\n\n)\n\n \n\n \n\n(40,513\n\n)\n\n \n\n \n\n(19,250\n\n)\n\n \n\n \n\n(175,787\n\n)\n\nSegment operating income (loss)\n\n \n\n$\n\n221,810\n\n \n\n \n\n$\n\n35,646\n\n \n\n \n\n$\n\n(773\n\n)\n\n \n\n \n\n256,683\n\n \n\nSelling, marketing, administrative and other expenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(232,747\n\n)\n\nAmortization of intangible assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(9,648\n\n)\n\nRestructuring costs\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11,773\n\n)\n\nLoss from sale of divested operation\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(1,775\n\n)\n\nInterest expense, other income, and gains on investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n1,897\n\n \n\nIncome before income taxes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n2,637\n\n \n\n \n\n55\n\n \n\n(1)\nThe significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.\n\n(2)\nOther segment expenses for each reportable segment includes office supplies, maintenance, and training expenses.\n\n \n\n \n\n \n\nResearch\nSegment\n\n \n\n \n\nConsulting\nSegment\n\n \n\n \n\nEvents\nSegment\n\n \n\n \n\nConsolidated\n\n \n\nYear Ended December 31, 2023\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nResearch revenues\n\n \n\n$\n\n334,396\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n—\n\n \n\n \n\n$\n\n334,396\n\n \n\nConsulting revenues\n\n \n\n \n\n28,826\n\n \n\n \n\n \n\n89,402\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n118,228\n\n \n\nEvents revenues\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n28,155\n\n \n\n \n\n \n\n28,155\n\n \n\nTotal segment revenues\n\n \n\n \n\n363,222\n\n \n\n \n\n \n\n89,402\n\n \n\n \n\n \n\n28,155\n\n \n\n \n\n \n\n480,779\n\n \n\nSegment expenses (1):\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n  Compensation, benefits and related costs\n\n \n\n \n\n(109,432\n\n)\n\n \n\n \n\n(37,828\n\n)\n\n \n\n \n\n(6,049\n\n)\n\n \n\n \n\n(153,309\n\n)\n\n  Direct costs of Events\n\n \n\n \n\n—\n\n \n\n \n\n \n\n—\n\n \n\n \n\n \n\n(14,293\n\n)\n\n \n\n \n\n(14,293\n\n)\n\n  Professional services\n\n \n\n \n\n(11,403\n\n)\n\n \n\n \n\n(2,181\n\n)\n\n \n\n \n\n(54\n\n)\n\n \n\n \n\n(13,638\n\n)\n\n  Billable expenses\n\n \n\n \n\n(595\n\n)\n\n \n\n \n\n(8,113\n\n)\n\n \n\n \n\n—\n\n \n\n \n\n \n\n(8,708\n\n)\n\n  Travel and entertainment\n\n \n\n \n\n(1,690\n\n)\n\n \n\n \n\n(317\n\n)\n\n \n\n \n\n(124\n\n)\n\n \n\n \n\n(2,131\n\n)\n\n  Software\n\n \n\n \n\n(2,089\n\n)\n\n \n\n \n\n(84\n\n)\n\n \n\n \n\n(14\n\n)\n\n \n\n \n\n(2,187\n\n)\n\n  Other segment expenses (2)\n\n \n\n \n\n(591\n\n)\n\n \n\n \n\n(21\n\n)\n\n \n\n \n\n(23\n\n)\n\n \n\n \n\n(635\n\n)\n\nTotal segment expenses\n\n \n\n \n\n(125,800\n\n)\n\n \n\n \n\n(48,544\n\n)\n\n \n\n \n\n(20,557\n\n)\n\n \n\n \n\n(194,901\n\n)\n\nSegment operating income\n\n \n\n$\n\n237,422\n\n \n\n \n\n$\n\n40,858\n\n \n\n \n\n$\n\n7,598\n\n \n\n \n\n \n\n285,878\n\n \n\nSelling, marketing, administrative and other expenses\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(253,884\n\n)\n\nAmortization of intangible assets\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(11,956\n\n)\n\nRestructuring costs\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(13,272\n\n)\n\nInterest expense, other income, and gains on investments\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n(481\n\n)\n\nIncome before income taxes\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n$\n\n6,285\n\n \n\n \n\n(1)\nThe significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.\n\n(2)\nOther segment expenses for each reportable segment includes office supplies, maintenance, and training expenses.\n\nNet long-lived tangible assets by location as of December 31, 2025 and 2024 are as follows (in thousands):\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nUnited States\n\n \n\n$\n\n34,738\n\n \n\n \n\n$\n\n30,307\n\n \n\nUnited Kingdom\n\n \n\n \n\n6,391\n\n \n\n \n\n \n\n7,043\n\n \n\nEurope (excluding United Kingdom)\n\n \n\n \n\n107\n\n \n\n \n\n \n\n191\n\n \n\nAsia Pacific\n\n \n\n \n\n643\n\n \n\n \n\n \n\n1,207\n\n \n\nTotal\n\n \n\n$\n\n41,879\n\n \n\n \n\n$\n\n38,748\n\n \n\nRevenues by geographic destination, based on the location products and services are consumed, and as a percentage of total revenues for the years ended December 31, 2025, 2024, and 2023 are as follows (dollars in thousands):\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nUnited States\n\n \n\n$\n\n304,168\n\n \n\n \n\n$\n\n334,095\n\n \n\n \n\n$\n\n373,483\n\n \n\nEurope (excluding United Kingdom)\n\n \n\n \n\n37,034\n\n \n\n \n\n \n\n37,698\n\n \n\n \n\n \n\n37,912\n\n \n\nUnited Kingdom\n\n \n\n \n\n15,746\n\n \n\n \n\n \n\n18,934\n\n \n\n \n\n \n\n21,311\n\n \n\nCanada\n\n \n\n \n\n10,919\n\n \n\n \n\n \n\n12,221\n\n \n\n \n\n \n\n16,416\n\n \n\nAsia Pacific\n\n \n\n \n\n21,774\n\n \n\n \n\n \n\n20,778\n\n \n\n \n\n \n\n23,604\n\n \n\nOther\n\n \n\n \n\n7,247\n\n \n\n \n\n \n\n8,744\n\n \n\n \n\n \n\n8,053\n\n \n\nTotal\n\n \n\n$\n\n396,888\n\n \n\n \n\n$\n\n432,470\n\n \n\n \n\n$\n\n480,779\n\n \n\n \n\n56\n\n \n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nUnited States\n\n \n\n \n\n77\n\n %\n\n \n\n \n\n77\n\n %\n\n \n\n \n\n78\n\n %\n\nEurope (excluding United Kingdom)\n\n \n\n \n\n9\n\n \n\n \n\n \n\n9\n\n \n\n \n\n \n\n8\n\n \n\nUnited Kingdom\n\n \n\n \n\n4\n\n \n\n \n\n \n\n4\n\n \n\n \n\n \n\n4\n\n \n\nCanada\n\n \n\n \n\n3\n\n \n\n \n\n \n\n3\n\n \n\n \n\n \n\n3\n\n \n\nAsia Pacific\n\n \n\n \n\n5\n\n \n\n \n\n \n\n5\n\n \n\n \n\n \n\n5\n\n \n\nOther\n\n \n\n \n\n2\n\n \n\n \n\n \n\n2\n\n \n\n \n\n \n\n2\n\n \n\nTotal\n\n \n\n \n\n100\n\n %\n\n \n\n \n\n100\n\n %\n\n \n\n \n\n100\n\n %\n\n \n\nNote 15 – Certain Balance Sheet Accounts\n\nProperty and Equipment:\n\nProperty and equipment as of December 31, 2025 and 2024 is recorded at cost less accumulated depreciation and consists of the following (in thousands):\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nComputers and equipment\n\n$\n\n8,112\n\n \n\n \n\n$\n\n8,615\n\n \n\nComputer software\n\n \n\n28,683\n\n \n\n \n\n \n\n32,120\n\n \n\nFurniture and fixtures\n\n \n\n7,309\n\n \n\n \n\n \n\n7,393\n\n \n\nLeasehold improvements\n\n \n\n24,004\n\n \n\n \n\n \n\n25,423\n\n \n\nTotal property and equipment\n\n \n\n68,108\n\n \n\n \n\n \n\n73,551\n\n \n\nLess accumulated depreciation\n\n \n\n(56,891\n\n)\n\n \n\n \n\n(61,852\n\n)\n\nTotal property and equipment, net\n\n$\n\n11,217\n\n \n\n \n\n$\n\n11,699\n\n \n\n \n\nThe Company incurs costs to develop or obtain internal use computer software used for its operations, and certain of these costs meeting the criteria in ASC 350 – Internal Use Software are capitalized and amortized over their useful lives. The entire balance in the computer software category above consists of these costs. Amortization of capitalized internal-use software costs totaled $3.2 million, $4.3 million, and $4.7 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is included in depreciation expense in the Consolidated Statements of Operations.\n\nAccrued Expenses and Other Current Liabilities:\n\nAccrued expenses and other current liabilities as of December 31, 2025 and 2024 consist of the following (in thousands):\n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nPayroll and related benefits\n\n$\n\n36,155\n\n \n\n \n\n$\n\n30,879\n\n \n\nTaxes\n\n \n\n3,300\n\n \n\n \n\n \n\n2,142\n\n \n\nLease liability\n\n \n\n7,383\n\n \n\n \n\n \n\n12,758\n\n \n\nOther\n\n \n\n15,580\n\n \n\n \n\n \n\n11,823\n\n \n\nTotal\n\n$\n\n62,418\n\n \n\n \n\n$\n\n57,602\n\n \n\n \n\nNon-Current Liabilities:\n\nNon-current liabilities as of December 31, 2025 and 2024 consist of the following (in thousands):\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\nDeferred tax liability\n\n$\n\n5,882\n\n \n\n \n\n$\n\n8,705\n\n \n\nOther\n\n \n\n2,053\n\n \n\n \n\n \n\n1,840\n\n \n\nTotal\n\n$\n\n7,935\n\n \n\n \n\n$\n\n10,545\n\n \n\n \n\n57\n\n \n\nAllowance for Expected Credit Losses:\n\nA rollforward of the allowance for expected credit losses as of and for the years ended December 31, 2025, 2024, and 2023 is as follows (in thousands):\n\n \n\n \n\n2025\n\n \n\n \n\n2024\n\n \n\n \n\n2023\n\n \n\nBalance, beginning of year\n\n$\n\n434\n\n \n\n \n\n$\n\n574\n\n \n\n \n\n$\n\n560\n\n \n\nProvision for doubtful accounts\n\n \n\n148\n\n \n\n \n\n \n\n547\n\n \n\n \n\n \n\n701\n\n \n\nWrite-offs\n\n \n\n(236\n\n)\n\n \n\n \n\n(697\n\n)\n\n \n\n \n\n(692\n\n)\n\nTranslation adjustments\n\n \n\n14\n\n \n\n \n\n \n\n10\n\n \n\n \n\n \n\n5\n\n \n\nBalance, end of year\n\n$\n\n360\n\n \n\n \n\n$\n\n434\n\n \n\n \n\n$\n\n574\n\n \n\nWhen evaluating the adequacy of the allowance for expected credit losses, the Company makes judgments regarding the collectability of accounts receivable based, in part, on the Company’s historical loss rate experience, customer concentrations, management’s expectations of future losses as informed by current economic conditions, and changes in customer payment terms. If the expected financial condition of the Company’s customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances may be required. If the expected financial condition of the Company’s customers were to improve, the allowances may be reduced accordingly.\n\nNote 16 – Contingencies\n\nFrom time to time, the Company may be subject to legal proceedings and civil and regulatory claims that arise in the ordinary course of its business activities. Regardless of the outcome, legal proceedings and claims can have a material adverse effect on the Company because of defense and settlement costs, diversion of management resources, and other factors. It is the Company's policy to record accruals for legal contingencies to the extent that it has concluded that it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated, and to expense costs associated with loss contingencies, including any related legal fees, as they are incurred. The Company reviews its loss contingencies at least quarterly and adjusts its accruals and/or disclosures to reflect the impact of negotiations, settlements, rulings, advice of legal counsel, or other new information, as deemed necessary. Once established, a provision may change in the future due to new developments or changes in circumstances and could increase or decrease the Company’s earnings in the period that the changes are made. Following an April 2023 mediation in a wage-related matter that resulted in a settlement agreement, the Company accrued $4.8 million of expense in the quarter ended March 31, 2023 that is classified in general and administrative expense in the Consolidated Statement of Operations. This claim was fully paid in the first quarter of 2024.\n\nNote 17 – Subsequent Event\n\nOn March 12, 2026, the Company executed a third amendment of its existing Credit Agreement in order to extend its maturity period and to reduce the size of the Revolving Credit Facility in order to decrease its ongoing costs. The key terms of the amendment include (a) an extension of the maturity date from December 2026 until March 12, 2029, (b) a reduction in the Revolving Credit Facility from $150.0 million to $50.0 million, (c) a reduction in the amount that the Company is permitted, subject to approval by the Administrative Agent, to increase commitments under the Revolving Credit Facility from $50.0 million to $15.0 million, and (d) the addition of a minimum liquidity covenant.\n\n58"}