Bullish indicating open at $55-$60, IPO prices at $37
Forge Global Holdings, Inc. (NYSE:FRGE), a company specializing in brokerage and financial exchange services currently valued at $115 million, has announced a change in its independent registered public accounting firm. According to InvestingPro data, the company faces financial challenges with a weak overall health score and significant cash burn rate, though it maintains a strong current ratio of 4.74x. Effective March 14, 2025, the company’s Audit Committee approved the dismissal of Ernst & Young LLP (EY) and the appointment of KPMG LLP as its new auditor for the fiscal year ending December 31, 2025, and related interim periods, pending standard client acceptance procedures.
The dismissal of EY and appointment of KPMG were communicated to EY on the same day. According to the company’s statement, EY’s audit reports for the fiscal years ended December 31, 2024, and 2023 did not contain any adverse opinion or disclaimer, nor were they qualified or modified regarding uncertainty, audit scope, or accounting principles.
Forge Global Holdings has confirmed that there were no disagreements with EY on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedure during the fiscal years mentioned or in the subsequent interim period through the effective date of the change. Furthermore, there were no reportable events as described in Regulation S-K.
The company has also stated that during the fiscal years ended December 31, 2024, and 2023, and the subsequent interim period, there were no consultations with KPMG regarding the application of accounting principles to a specified transaction, audit opinions on the company’s consolidated financial statements, or any matter that was the subject of a disagreement or a reportable event.
EY has provided a letter, dated March 20, 2025, to the Securities and Exchange Commission (SEC) agreeing with the company’s statements regarding the change in auditors. This letter is filed as an exhibit to the company’s Form 8-K.
This corporate update is based on the recent SEC filing by Forge Global Holdings, Inc., which details the transition in the company’s accounting oversight. The company, formerly known as Motive Capital Corp and MCF2 Acquisition Corp., is headquartered in San Francisco, California, and trades on the New York Stock Exchange under the ticker (NYSE:FRGE). Recent InvestingPro analysis indicates the stock is currently undervalued, despite facing challenges including a 71% decline over the past year and negative EBITDA of -$74.3 million. Investors seeking deeper insights can access comprehensive analysis and 12 additional ProTips through InvestingPro’s detailed research reports, available for over 1,400 US stocks including FRGE.
In other recent news, Forge Global Holdings Inc. reported its fourth-quarter earnings for 2024, which fell short of analyst expectations. The company posted an earnings per share (EPS) of -0.08, slightly below the forecasted -0.07, and revenue of $18.3 million, missing the anticipated $25.19 million. Despite these setbacks, Forge Global experienced a 46% year-over-year increase in marketplace revenues and a 73% surge in trading volume to $1.3 billion. The company also reported a full-year net loss of $67.8 million, an improvement from the previous year’s $91.5 million loss, highlighting effective cost management and operational efficiencies.
Additionally, Forge Global announced the appointment of Brian McDonald, a seasoned financial industry veteran, to its Board of Directors. McDonald, with experience from Morgan Stanley (NYSE:MS) and Charles Schwab (NYSE:SCHW), is expected to aid Forge’s strategic initiatives, focusing on technology-driven growth and international market expansion. The company also launched Forge Pro and expanded its SPV structures, indicating a focus on innovation. In a move to enhance shareholder value, Forge’s Board authorized a stock buyback program of up to $10 million, reflecting confidence in the company’s strategic goals and stock valuation.
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