Forge Global Holdings, Inc.

Q2 revenue was $27.6 million, up 10% sequentially, and Q2 market-based revenues were $18.6 million, up 16% from Q1. Trading volume increased to $756 million from $692 million, while net take rates improved from 2.3% to 2.4%. Custodial administration fees were $9.1 million, and custodial client cash balances were $440 million versus $460 million at the end of Q1. Adjusted EBITDA loss improved to $5.4 million from $8.9 million, and net cash used in operating activities was $7.8 million versus $12.8 million in Q1. On a first-half basis, revenues less transaction-based expenses were $52.7 million, up 28% year over year, adjusted EBITDA loss improved 33%, and adjusted EPS improved 29% year over year. Management said it remains on track to reach adjusted EBITDA breakeven in 2026 and expects second-half organic revenue and adjusted EBITDA growth rates to be in line with first-half year-over-year growth rates, with Q3 seasonally lower than Q2 and Q4.

Kelly Rodriques framed the quarter as evidence that Forge’s strategy is aligning with a broader shift in private markets, where companies stay private longer and investor demand for alternatives is rising. She emphasized four verticals—trading, data, custody, and wealth—and said Forge aims to become the ‘central nervous system’ of the private market. Her tone was confident and upbeat, but still measured on near-term market conditions, repeatedly noting it is still early for the new marketplace and that the company is ‘cautiously optimistic’ about the IPO backdrop and regulatory developments.

James Nevin said Q2 results beat expectations and reflected stronger marketplace performance, improved cost control, and lower operating cash burn. He cited $27.6 million of revenue, a $5.4 million adjusted EBITDA loss, $7.8 million of operating cash use, and $81.8 million of combined liquidity at June 30 versus $93.1 million at March 31. He also pointed to $3 million of reorganization and Accuidity acquisition costs in operating expenses, noted that excluding those items operating expenses would have improved 10% quarter over quarter, and said offshoring some technology development should start benefiting results in Q4 and into 2026.

Analysts focused on how a reopening IPO market is affecting volumes, the mix of institutional versus retail activity, tokenization, the launch of a registered fund, and the timing of 2026 breakeven. Management said Q2 volume strength was more evenly distributed than Q1, with a higher proportion of institutional blocks and direct trading, and that Q3 seasonality should temper results. On tokenization, Kelly said Forge is watching the space closely but would want issuer support and strong partnerships before moving in; on funds and retirement access, she described it as an extension of Forge’s broader access strategy. James reiterated confidence in 2026 breakeven but did not give a specific timing within the year.