Forge Global (FRGE) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly revenue of $25.3 million for Q1 2025, up 36% sequentially and 31% year-over-year, driven by improved market dynamics, strong marketplace revenue, and institutional block trades.

• Marketplace revenue reached $16 million, up 85% quarter-over-quarter and 88% year-over-year, with trading volume surging 132% to $692 million.

• Net loss attributable to shareholders was $16.2 million, flat sequentially and improved from $18.6 million year-over-year; adjusted EBITDA loss narrowed to $8.9 million from $13.5 million year-over-year.

• Strategic partnerships launched with Yahoo Finance and Intercontinental Exchange to expand data distribution and market reach.

• Announced intent to acquire Equity Capital Management and entered a non-binding LOI to acquire Accuidity Capital Management to accelerate asset management expansion and recurring revenue streams.

Financial highlights

• Total revenue: $25.3 million, up 36% from the previous quarter and 31% year-over-year.

• Marketplace revenue: $16 million, up 85% quarter-over-quarter and 88% year-over-year.

• Trading volume: $692 million, up 132% quarter-over-quarter and 59% year-over-year.

• Net loss: $16.2 million, flat sequentially and improved from $18.6 million year-over-year.

• Adjusted EBITDA loss: $8.9 million, improved from $10.9 million prior quarter and $13.5 million year-over-year.

• Custodial administration fees: $9.3 million, down 7% sequentially and 13% year-over-year due to rate cuts and lower client cash balances.

• Net take rate declined from 2.8% to 2.3%, primarily due to large SPV block trades.

Outlook and guidance

• Strong deal pipeline persists into Q2, but macroeconomic volatility and tariff uncertainty make forecasting challenging.

• Management expects existing liquidity to be sufficient for operating and capital needs for at least the next twelve months.

• On track for adjusted EBITDA break-even and cash-neutral position by 2026; cash burn in 2025 expected to be lower than previous years.

• Estimated weighted average shares outstanding for Q2 2025 is 12.3M; full year 2025 estimate: 12.3M shares.