FORRESTER RESEARCH, INC. Segments Disclosure
Note 14 – Operating Segment and Enterprise Wide Reporting
The Company’s chief operating decision-maker is . 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.
The 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.
The 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.
The Events segment includes the revenues and the costs of the organization responsible for developing and hosting the Company's events.
The 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.
The Company provides information by reportable segment in the tables below (in thousands):
|
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|
|
|
|
|
|
|
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||||
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|
Research |
|
|
Consulting |
|
|
Events |
|
|
Consolidated |
|
||||
Year Ended December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research revenues |
|
$ |
295,607 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
295,607 |
|
Consulting revenues |
|
|
21,963 |
|
|
|
66,229 |
|
|
|
— |
|
|
|
88,192 |
|
Events revenues |
|
|
— |
|
|
|
— |
|
|
|
13,089 |
|
|
|
13,089 |
|
Total segment revenues |
|
|
317,570 |
|
|
|
66,229 |
|
|
|
13,089 |
|
|
|
396,888 |
|
Segment expenses (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation, benefits and related costs |
|
|
(92,500 |
) |
|
|
(28,411 |
) |
|
|
(5,376 |
) |
|
|
(126,287 |
) |
Direct costs of Events |
|
|
— |
|
|
|
— |
|
|
|
(13,140 |
) |
|
|
(13,140 |
) |
Professional services |
|
|
(6,837 |
) |
|
|
(3,453 |
) |
|
|
(58 |
) |
|
|
(10,348 |
) |
Billable expenses |
|
|
(407 |
) |
|
|
(5,993 |
) |
|
|
— |
|
|
|
(6,400 |
) |
Travel and entertainment |
|
|
(1,950 |
) |
|
|
(518 |
) |
|
|
(162 |
) |
|
|
(2,630 |
) |
Software |
|
|
(1,399 |
) |
|
|
— |
|
|
|
(56 |
) |
|
|
(1,455 |
) |
Other segment expenses (2) |
|
|
(168 |
) |
|
|
(34 |
) |
|
|
(37 |
) |
|
|
(239 |
) |
Total segment expenses |
|
|
(103,261 |
) |
|
|
(38,409 |
) |
|
|
(18,829 |
) |
|
|
(160,499 |
) |
Segment operating income (loss) |
|
$ |
214,309 |
|
|
$ |
27,820 |
|
|
$ |
(5,740 |
) |
|
|
236,389 |
|
Selling, marketing, administrative and other expenses |
|
|
|
|
|
|
|
|
|
|
|
(218,386 |
) |
|||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
(8,745 |
) |
|||
Restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
(11,724 |
) |
|||
Goodwill impairment |
|
|
|
|
|
|
|
|
|
|
|
(110,707 |
) |
|||
Interest expense, credit loss expense on note receivable, other income, and gains on investments |
|
|
|
|
|
|
|
|
|
|
|
(6,236 |
) |
|||
Loss before income taxes |
|
|
|
|
|
|
|
|
|
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$ |
(119,409 |
) |
|||
|
|
|
|
|
|
|
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|
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|
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Research |
|
|
Consulting |
|
|
Events |
|
|
Consolidated |
|
||||
Year Ended December 31, 2024 |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Research revenues |
|
$ |
316,739 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
316,739 |
|
Consulting revenues |
|
|
21,095 |
|
|
|
76,159 |
|
|
|
— |
|
|
|
97,254 |
|
Events revenues |
|
|
— |
|
|
|
— |
|
|
|
18,477 |
|
|
|
18,477 |
|
Total segment revenues |
|
|
337,834 |
|
|
|
76,159 |
|
|
|
18,477 |
|
|
|
432,470 |
|
Segment expenses (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation, benefits and related costs |
|
|
(100,995 |
) |
|
|
(30,433 |
) |
|
|
(5,567 |
) |
|
|
(136,995 |
) |
Direct costs of Events |
|
|
— |
|
|
|
— |
|
|
|
(13,434 |
) |
|
|
(13,434 |
) |
Professional services |
|
|
(10,449 |
) |
|
|
(1,735 |
) |
|
|
(74 |
) |
|
|
(12,258 |
) |
Billable expenses |
|
|
(613 |
) |
|
|
(7,927 |
) |
|
|
— |
|
|
|
(8,540 |
) |
Travel and entertainment |
|
|
(1,830 |
) |
|
|
(393 |
) |
|
|
(104 |
) |
|
|
(2,327 |
) |
Software |
|
|
(1,740 |
) |
|
|
— |
|
|
|
(38 |
) |
|
|
(1,778 |
) |
Other segment expenses (2) |
|
|
(397 |
) |
|
|
(25 |
) |
|
|
(33 |
) |
|
|
(455 |
) |
Total segment expenses |
|
|
(116,024 |
) |
|
|
(40,513 |
) |
|
|
(19,250 |
) |
|
|
(175,787 |
) |
Segment operating income (loss) |
|
$ |
221,810 |
|
|
$ |
35,646 |
|
|
$ |
(773 |
) |
|
|
256,683 |
|
Selling, marketing, administrative and other expenses |
|
|
|
|
|
|
|
|
|
|
|
(232,747 |
) |
|||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
(9,648 |
) |
|||
Restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
(11,773 |
) |
|||
Loss from sale of divested operation |
|
|
|
|
|
|
|
|
|
|
|
(1,775 |
) |
|||
Interest expense, other income, and gains on investments |
|
|
|
|
|
|
|
|
|
|
|
1,897 |
|
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
2,637 |
|
|||
|
|
Research |
|
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Consulting |
|
|
Events |
|
|
Consolidated |
|
||||
Year Ended December 31, 2023 |
|
|
|
|
|
|
|
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|
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|
||||
Research revenues |
|
$ |
334,396 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
334,396 |
|
Consulting revenues |
|
|
28,826 |
|
|
|
89,402 |
|
|
|
— |
|
|
|
118,228 |
|
Events revenues |
|
|
— |
|
|
|
— |
|
|
|
28,155 |
|
|
|
28,155 |
|
Total segment revenues |
|
|
363,222 |
|
|
|
89,402 |
|
|
|
28,155 |
|
|
|
480,779 |
|
Segment expenses (1): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Compensation, benefits and related costs |
|
|
(109,432 |
) |
|
|
(37,828 |
) |
|
|
(6,049 |
) |
|
|
(153,309 |
) |
Direct costs of Events |
|
|
— |
|
|
|
— |
|
|
|
(14,293 |
) |
|
|
(14,293 |
) |
Professional services |
|
|
(11,403 |
) |
|
|
(2,181 |
) |
|
|
(54 |
) |
|
|
(13,638 |
) |
Billable expenses |
|
|
(595 |
) |
|
|
(8,113 |
) |
|
|
— |
|
|
|
(8,708 |
) |
Travel and entertainment |
|
|
(1,690 |
) |
|
|
(317 |
) |
|
|
(124 |
) |
|
|
(2,131 |
) |
Software |
|
|
(2,089 |
) |
|
|
(84 |
) |
|
|
(14 |
) |
|
|
(2,187 |
) |
Other segment expenses (2) |
|
|
(591 |
) |
|
|
(21 |
) |
|
|
(23 |
) |
|
|
(635 |
) |
Total segment expenses |
|
|
(125,800 |
) |
|
|
(48,544 |
) |
|
|
(20,557 |
) |
|
|
(194,901 |
) |
Segment operating income |
|
$ |
237,422 |
|
|
$ |
40,858 |
|
|
$ |
7,598 |
|
|
|
285,878 |
|
Selling, marketing, administrative and other expenses |
|
|
|
|
|
|
|
|
|
|
|
(253,884 |
) |
|||
Amortization of intangible assets |
|
|
|
|
|
|
|
|
|
|
|
(11,956 |
) |
|||
Restructuring costs |
|
|
|
|
|
|
|
|
|
|
|
(13,272 |
) |
|||
Interest expense, other income, and gains on investments |
|
|
|
|
|
|
|
|
|
|
|
(481 |
) |
|||
Income before income taxes |
|
|
|
|
|
|
|
|
|
|
$ |
6,285 |
|
|||
Net long-lived tangible assets by location as of December 31, 2025 and 2024 are as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
||
United States |
|
$ |
34,738 |
|
|
$ |
30,307 |
|
United Kingdom |
|
|
6,391 |
|
|
|
7,043 |
|
Europe (excluding United Kingdom) |
|
|
107 |
|
|
|
191 |
|
Asia Pacific |
|
|
643 |
|
|
|
1,207 |
|
Total |
|
$ |
41,879 |
|
|
$ |
38,748 |
|
Revenues 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):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
|
$ |
304,168 |
|
|
$ |
334,095 |
|
|
$ |
373,483 |
|
Europe (excluding United Kingdom) |
|
|
37,034 |
|
|
|
37,698 |
|
|
|
37,912 |
|
United Kingdom |
|
|
15,746 |
|
|
|
18,934 |
|
|
|
21,311 |
|
Canada |
|
|
10,919 |
|
|
|
12,221 |
|
|
|
16,416 |
|
Asia Pacific |
|
|
21,774 |
|
|
|
20,778 |
|
|
|
23,604 |
|
Other |
|
|
7,247 |
|
|
|
8,744 |
|
|
|
8,053 |
|
Total |
|
$ |
396,888 |
|
|
$ |
432,470 |
|
|
$ |
480,779 |
|
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
United States |
|
|
77 |
% |
|
|
77 |
% |
|
|
78 |
% |
Europe (excluding United Kingdom) |
|
|
9 |
|
|
|
9 |
|
|
|
8 |
|
United Kingdom |
|
|
4 |
|
|
|
4 |
|
|
|
4 |
|
Canada |
|
|
3 |
|
|
|
3 |
|
|
|
3 |
|
Asia Pacific |
|
|
5 |
|
|
|
5 |
|
|
|
5 |
|
Other |
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
Total |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
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 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 9, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 11, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.