FORRESTER RESEARCH, INC. Leases Disclosure
Note 6 – Leases
The components of lease expense were as follows (in thousands):
|
Years Ended December 31, |
|
|||||||||
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Operating lease cost |
$ |
7,857 |
|
|
$ |
11,542 |
|
|
$ |
12,671 |
|
Short-term lease cost |
|
1,703 |
|
|
|
1,095 |
|
|
|
981 |
|
Variable lease cost |
|
4,064 |
|
|
|
4,817 |
|
|
|
4,394 |
|
Sublease income |
|
(39 |
) |
|
|
(524 |
) |
|
|
(521 |
) |
Total lease cost |
$ |
13,585 |
|
|
$ |
16,930 |
|
|
$ |
17,525 |
|
Additional lease information is summarized in the following table (in thousands, except lease term and discount rate):
|
|
Years Ended December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash paid for amounts included in the measurement of |
|
$ |
10,962 |
|
|
$ |
14,570 |
|
Operating ROU assets obtained in exchange for |
|
$ |
9,936 |
|
|
$ |
408 |
|
Weighted-average remaining lease term - operating |
|
|
9.0 |
|
|
|
3.7 |
|
Weighted-average discount rate - operating leases |
|
|
5.1 |
% |
|
|
4.1 |
% |
Future minimum lease payments under non-cancelable leases as of December 31, 2025 are as follows (in thousands):
|
|
Operating Lease |
|
|
Tenant Improvement |
|
|
Net Undiscounted |
|
|
Sublease |
|
||||
|
|
Payments |
|
|
Allowance |
|
|
Cash Flows |
|
|
Cash Receipts |
|
||||
2026 |
|
$ |
7,590 |
|
|
$ |
(17,151 |
) |
|
$ |
(9,561 |
) |
|
$ |
292 |
|
2027 |
|
|
8,276 |
|
|
|
— |
|
|
|
8,276 |
|
|
|
389 |
|
2028 |
|
|
6,548 |
|
|
|
— |
|
|
|
6,548 |
|
|
|
— |
|
2029 |
|
|
6,625 |
|
|
|
— |
|
|
|
6,625 |
|
|
|
— |
|
2030 |
|
|
6,574 |
|
|
|
— |
|
|
|
6,574 |
|
|
|
— |
|
Thereafter |
|
|
37,649 |
|
|
|
— |
|
|
|
37,649 |
|
|
|
— |
|
Total |
|
|
73,262 |
|
|
|
(17,151 |
) |
|
|
56,111 |
|
|
$ |
681 |
|
Less imputed interest |
|
|
|
|
|
|
|
|
(19,216 |
) |
|
|
|
|||
Present value of lease liabilities |
|
|
|
|
|
|
|
$ |
36,895 |
|
|
|
|
|||
Lease balances are as follows (in thousands):
|
|
As of |
|
|
|
|
December 31, 2025 |
|
|
Operating lease ROU assets |
|
$ |
30,662 |
|
|
|
|
|
|
(1) |
|
$ |
7,383 |
|
Non-current operating lease liabilities |
|
|
29,512 |
|
Total operating lease liabilities |
|
$ |
36,895 |
|
The 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.
During 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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 13, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 10, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 11, 2021 | |
| 2019 | Mar 13, 2020 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.