Forge Global Holdings, Inc. (NYSE: FRGE), a leading private securities marketplace, announced its financial results for the fourth quarter and fiscal year ended December 31, 2024.

The company reported total revenue less transaction-based expenses of $78.7 million for the full year, representing a 13% increase compared to 2023, with marketplace revenues surging 46% year-over-year to $37.0 million.

The company’s trading volume reached $1.3 billion for the year, a substantial 73% increase from the previous year. Despite the strong growth in marketplace revenues, Forge’s custodial administration fees declined 5% year-over-year to $41.7 million.

“We closed out 2024 with 13% year-over-year growth and a strong pipeline,” said Forge CEO Kelly Rodriques. “Our year-over-year revenue improvement included a 46% increase in marketplace revenues, which grew to $37.0 million. As Q4 came in near-even to Q3, I’m happy to report we’ve observed improving over-all market dynamics and growing deal activity, aided by the technology improvements we’ve delivered to support our leading marketplace.”

For the fourth quarter, Forge reported revenue with less transaction-based expenses of $18.3 million, down slightly from $19.1 million in the previous quarter. The company’s operating loss improved to $18.7 million compared to $20.9 million quarter-over-quarter.

Forge finished the year with a strong cash position, reporting cash and cash equivalents of $105.1 million as of December 31, 2024. Net loss for the full year was $67.8 million, a 26% improvement from the $91.5 million loss reported in 2023.

The company’s Adjusted EBITDA loss for the year was $43.7 million, a 10% improvement compared to the $48.8 million loss in the previous year. Net cash used in operating activities was $40.5 million, a slight 2% improvement from the $41.5 million used in 2023.

In a significant development for shareholders, Forge’s board of directors authorized a share repurchase program of up to $10 million of the company’s common stock.

The program allows for repurchases through open market purchases or privately negotiated transactions, subject to market conditions and other factors.

Forge’s marketplace activities showed strong momentum throughout the year, with the total number of trades increasing by 57% to 2,762 in 2024 compared to 1,756 in 2023. The company’s net take rate decreased to 2.8% for the year, down from 3.3% in 2023.

On the custodial front, total accounts grew by 14% year-over-year to 2.38 million, with assets under custody increasing by 8% to $16.9 billion.

The company launched several new products and features during the year, including Forge Price, a proprietary indicative price calculated daily for approximately 200 pre-IPO companies. This pricing model provides derived share prices by synthesizing data from various sources, including secondary market transactions, recent funding rounds, and indications of interest collected by Forge.

Additionally, the company announced the Private Market Magnificent 7, a selection of top-performing companies in the Forge marketplace based on criteria including company size, share price performance, secondary trading liquidity, market leadership, and brand equity.

Forge also released Forge Pro, a web application designed for institutional clients that combines data visualization with detailed trade data, extensive company information, and advanced pricing data.

As of December 31, 2024, Forge had 186 million basic weighted-average shares used to compute net loss per share, with a fully diluted outstanding share count of 201 million shares.

Opinion

The financial results from Forge Global Holdings reveal a company with contrasting performance indicators. While the 13% overall revenue growth is respectable, the 46% surge in marketplace revenues stands as the clear highlight, demonstrating strong traction in Forge’s core trading business. This growth is further validated by the impressive 73% increase in trading volume, suggesting Forge is successfully capturing more market share in the private securities trading space.

However, several weaknesses warrant attention. The 5% decline in custodial administration fees, which still represent the majority of Forge’s revenue, indicates potential challenges in this business segment. The continued operating losses, despite some improvement, point to an ongoing struggle to achieve profitability.

With $40.5 million in cash used for operations during 2024, the company’s $105.1 million cash balance provides a runway but doesn’t eliminate concerns about long-term sustainability without significant operational improvements.

The newly announced $10 million share repurchase program is a double-edged sword: while it may signal management’s confidence in the company’s value, it also raises questions about capital allocation at a time when Forge continues to post significant losses.

The series of new product launches—Forge Price, Private Market Magnificent 7, and Forge Pro—represent potential opportunities for growth and differentiation in the private securities marketplace. These innovations could help Forge establish greater competitive advantages and potentially improve take rates, which declined from 3.3% to 2.8% year-over-year.

Looking ahead, Forge’s ability to continue growing marketplace revenues while stemming losses in its custodial business will likely determine whether 2025 becomes a turning point toward profitability or another year of burning through cash reserves.

Forge Global Holdings: Learn more.