Forge Global Holdings Reports Record Q1 2025 Financial Results: A Milestone in Private Market Innovation
Forge Global Holdings, Inc. (NYSE: FRGE), a leading provider of marketplace infrastructure, data services, and technology solutions for the private market, has announced its preliminary financial results for the first quarter of fiscal year 2025, ending March 31, 2025. The results highlight significant growth across key metrics, marking this as the company’s highest revenue quarter as a public entity. These achievements underscore Forge’s leadership in driving innovation and efficiency within the private market ecosystem.
Record-Breaking Revenue Growth
Forge’s total revenues less transaction-based expenses are estimated to range between $24.9 million and $25.1 million, representing a substantial increase from $18.3 million in the prior quarter. This marks a pivotal moment for the company as it achieves its highest revenue quarter since going public. According to James Nevin, CFO of Forge, “Improving market dynamics, post-election fervor that carried into the start of the year, and several large institutional block trades have contributed to this exceptional performance. These results are estimated to exceed our internal forecasts.”
The impressive revenue growth is driven by strong performance in the company’s marketplace segment, which plays a crucial role in facilitating private market transactions. Total marketplace revenues less transaction-based expenses are estimated to be between $15.7 million and $15.8 million, more than doubling from $8.4 million in the previous quarter. This surge reflects increased market traction and growing adoption of Forge’s fully automated marketplace technology.
Surge in Trading Volume
One of the standout highlights of Forge’s Q1 2025 performance is the remarkable increase in trading volume, which surged 132% to $692.5 million, up from $299 million in the prior quarter. This exponential growth underscores the platform’s ability to attract high-value transactions and meet the demands of institutional investors and private shareholders alike.
However, the net take rate—a critical measure of profitability—declined slightly to an estimated 2.3%, compared to 2.8% in the previous quarter. This decline is attributed to the mix of clients and the execution of several large block trades, which typically carry lower margins. Despite this, the overall revenue impact remains positive due to the sheer scale of trading activity.
Custodial Administration Performance
While marketplace revenues soared, custodial administration fees less transaction-based expenses saw a modest decline, estimated at $9.2 million to $9.3 million, compared to $9.8 million in the prior quarter. This slight decrease does not detract from the broader narrative of growth, as Forge continues to expand its custodial services and enhance its value proposition for clients.
Forge’s custodial business remains a cornerstone of its operations, with total custodial accounts increasing to 2,508,388, up from 2,376,099 at the end of 2024. Similarly, total assets under custody grew to $17.6 billion, reflecting a steady rise from $16.9 billion in the previous quarter. These metrics highlight the trust and confidence clients place in Forge’s platform for managing their private market investments.
Key Drivers of Success
Several factors contributed to Forge’s outstanding performance in Q1 2025:
- Market Dynamics: Improved market conditions and heightened investor interest in private markets fueled demand for Forge’s services.
- Strategic Investments: The company continued to invest in its fully automated marketplace technology, enhancing its capabilities to handle complex transactions efficiently.
- Data Leadership: Forge’s partnership with Yahoo Finance exemplifies its commitment to distributing proprietary, industry-leading data, further solidifying its position as a trusted resource for private market insights.
- Institutional Adoption: Several large institutional block trades during the quarter underscored the growing reliance on Forge’s platform for executing high-value transactions.
Financial Position and Operational Metrics
Forge’s estimated net loss for the quarter ranges between ($16.2 million) and ($16.7 million), while its Adjusted EBITDA loss is projected at ($8.9 million) to ($9.3 million). These figures reflect higher variable compensation tied to the company’s improved performance, as well as costs associated with transitioning its CFO, ramping up offshore resources, and managing seasonal expenses such as payroll-related taxes.
Despite these operational costs, Forge maintains a strong financial position, with cash and cash equivalents and short-term investments totaling $93.1 million as of March 31, 2025, down from $106.2 million at the end of 2024. The reduction is primarily due to funding operations and paying annual bonuses in the first quarter, a typical seasonal expense.
Looking Ahead
Forge’s leadership expressed optimism about the company’s momentum and future prospects. “We’re pleased with our progress and look forward to sharing our full results in early May,” said Nevin. The company plans to release its complete financial report on May 7, alongside its quarterly earnings conference call.
Why Forge Matters in the Private Market Landscape
As private markets continue to grow in importance, Forge’s innovative solutions are proving indispensable for investors, companies, and stakeholders navigating this complex space. By combining cutting-edge technology with deep industry expertise, Forge is redefining how private market transactions are executed and managed.
For businesses and investors seeking reliable access to private market opportunities, Forge’s platform offers unparalleled scalability, transparency, and efficiency. Its ability to deliver record-breaking results in Q1 2025 demonstrates the company’s resilience and adaptability in an ever-evolving financial landscape.
About Forge
Forge (NYSE: FRGE) is a leading provider of marketplace infrastructure, data services and technology and investment solutions for the private market. Forge Securities LLC is a registered broker-dealer and a Member of FINRA that operates an alternative trading system.
