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Introduction & Market Context
Forge Global Holdings Inc. (NYSE:FRGE) presented its second quarter 2025 financial results on July 30, 2025, highlighting record revenue growth and significant improvements in its path toward profitability. The company, which operates a marketplace for private securities, is capitalizing on fundamental shifts in private market dynamics.
As shown in the following chart of private market trends, companies are staying private longer, with the median age of VC-backed IPOs increasing dramatically from 6 years in 2000 to 37 years in 2024. Simultaneously, alternative investments are becoming mainstream in investment portfolios, while retail investor allocation to private markets is projected to grow from $0.1 trillion in 2024 to $2.4 trillion by 2030, representing a 76.2% CAGR.
Quarterly Performance Highlights
Forge Global reported its second consecutive quarter of record revenue, with 28% year-over-year growth for the first half of 2025. The company achieved its lowest Adjusted EBITDA loss since becoming a public company, demonstrating progress toward its profitability goals.
The following slide summarizes the key achievements for Q2 2025, including the launch of the Next (LON:NXT) Generation Marketplace, expanded data distribution partnerships, and the completed acquisition of Accuidity:
According to the earnings call, trading volume reached $756 million in Q2, representing a 9% increase quarter-over-quarter. The stock saw a premarket rise of 1.14% following the announcement, reaching $16.86, and continued to gain throughout the trading day with a 3.21% increase, reflecting positive investor sentiment toward the company’s performance and strategic initiatives.
Detailed Financial Analysis
Forge Global’s Q2 2025 revenue breakdown shows strong performance in marketplace revenue, which reached $18.6 million, up from $16.0 million in Q1 2025 and $11.7 million in Q2 2024. Custodial administration fees were $9.1 million, slightly down from $9.3 million in Q1 2025 and $10.6 million in Q2 2024. Total (EPA:TTEF) revenues, less transaction-based expenses, amounted to $27.6 million, representing a 10% increase from the previous quarter and a 25.5% increase year-over-year.
The detailed revenue breakdown is illustrated in the following chart:
On the expense side, Forge Global reported total operating expenses of $40.4 million in Q2 2025, down from $41.6 million in Q1 2025 and up slightly from $39.7 million in Q2 2024. The company’s net loss was $16.6 million, compared to $16.2 million in Q1 2025 and $14.0 million in Q2 2024.
Notably, Adjusted EBITDA loss improved to $5.4 million, a significant enhancement from $8.9 million in Q1 2025 and $7.9 million in Q2 2024. This improvement reflects the company’s focus on operational efficiency while driving revenue growth, as shown in the following EBITDA bridge:
Year-to-date financial performance further underscores Forge Global’s progress. For the first half of 2025, revenue net of transaction-based expenses reached $52.7 million, a 28% increase from $41.2 million in H1 2024. Total operating expenses decreased by 2% to $82.0 million, while Adjusted EBITDA loss improved by 33% to $14.3 million. Adjusted EPS also showed a 29% improvement, reaching ($2.30) compared to ($3.22) in H1 2024.
The comprehensive year-over-year comparison is presented in the following table:
Strategic Initiatives & Market Positioning
Forge Global is strategically positioning itself as the "central nervous system of the private market," integrating trading infrastructure, proprietary data, asset management, and custody solutions through its Next Generation Platform. This platform connects companies, investors, shareholders, and partners, creating a comprehensive ecosystem for private market transactions.
The following diagram illustrates Forge’s unique positioning in the market:
The company’s 2025 strategic priorities focus on three key areas: opening the market to new participants through new investment vehicles and products, expanding technology-enabled competitive advantage through modern API-native architecture, and executing with discipline by balancing innovation with operational focus.
CEO Kelly Rodriques emphasized this strategic direction during the earnings call, stating, "We’re operating with greater clarity, greater momentum and greater conviction than ever before."
Market trends appear favorable for Forge’s business model, with data showing 64% buyside interest and improving valuation metrics. The median discount to last funding round improved from -21% in May to -9% in June 2025, indicating strengthening private market conditions.
Forward-Looking Statements
Looking ahead, Forge Global expects continued revenue and Adjusted EBITDA growth in the second half of 2025. The company remains confident in achieving Adjusted EBITDA breakeven by 2026, supported by its growing marketplace activity and operational efficiencies.
Strategic initiatives include the planned launch of its first registered fund later in 2025 and the expansion of custody solutions for wealth and investment advisers. The company is also exploring ways to broaden 401(k) private market access, supported by regulatory momentum that favors broader private market participation.
Forge Global highlights three key investment considerations: the massive private market opportunity, technology-driven competitive advantage, and a clear path to profitability.
While the company’s presentation and recent performance show promising trends, investors should consider potential risks including market volatility affecting trading volumes, regulatory changes, intense competition in the private market sector, and execution risks associated with new product launches and strategic expansions.
With its stock trading at $16.67 as of July 30, 2025, within a 52-week range of $6.60 to $23.70, Forge Global appears to be gaining momentum as it executes on its strategy to capitalize on the growing private market opportunity.
Full presentation:
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