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Forrester Q2 2025 Earnings Recap

By John RockholdAugust 1, 2025
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Forrester Q2 2025 Earnings Recap

Forrester's Q2 2025 results show continued declines in key financial metrics. That said, the company remains strategically focused on becoming the leading research firm on artificial intelligence. Perhaps the best news from the quarter is how recent improvements to Izola, Forrester’s generative AI tool, are improving client engagement.

What You Need to Know

  • Forrester’s revenue declined:
    • Q2 2025 revenue was $111.7 million, a 8% decline from $121.8 million in Q2 2024.
    • Research-specific revenue declined 7% from Q2 2024.
  • Forrester’s client count is 1,805, a 12% decline from Q2 2024.
  • Forrester’s total headcount decreased by 12% from Q2 2024.
  • Improvements to Izola – Forrester’s generative AI research tool – include report-specific interactions and the ability for Izola to leverage visuals, including the Forrester Wave graphic.
    • Client usage of Izola rose 22% since Q1.
    • Prompts within Izola rose 44% since Q1.

Key Q2 2025 Metrics

  • Total Revenue: $111.7M, down 8% YoY
  • Contract Value: $288.7M, down 7% YoY
  • Research Revenue: $77.9M, down 7% YoY
  • Consulting Revenue: $23.4M, down 6% YoY
  • Overall Headcount: 1,465 down 12% YoY
  • Sales Force: 540, down 9% YoY
  • Number of Clients: 1,805, down 12% YoY

More Takeaways from Forrester’s Q2 2025 Results:

Izola Improvements

Forrester continues to improve Izola, its generative AI research tool. Izola can now read and draw answers from charts, graphics, and figures in Forrester reports – such as the Forrester Wave graphic. Another iteration is that Izola can now isolate its focus to a specific report, creating an in-report interaction experience. Forrester believes that this more “native” experience will further accelerate the value that Izola provides to clients.

Forrester Clients’ Focus on AI

Given Izola and the quality and quantity of AI-related research coming from Forrester analysts, Forrester CEO George Colony continues to champion the firm as the leading AI research company.

Colony also shared evidence of Forrester clients’ interest in AI. As part of the product, each Forrester Decisions (FD) client declares its top five strategic initiatives. Generative AI ranks in the top three of those initiatives across all 14 FD services (such as Customer Experience, B2C Marketing, and Digital Business).

Research Revenue Declines

Q2 2025 marks the tenth consecutive quarter of decline for research-specific revenue. Revenue specific to subscriptions declined 3 percent compared to Q2 2024. The good news is that 22% of Forrester clients are in three-year contracts.

New Research Constructs

Colony summarized the two new frameworks that Forrester launched at its flagship events (B2B Summit and CX Summit North America). First, the concept of buying networks within B2B sales and marketing. Second, the Total Experience Score, which relates to brand experience, customer experience, and B2C marketing.

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