Forge Global Holdings (FRGE) AI Stock Analysis

• Market Cap: $93.09M
• Dividend Yield: N/A
• Average Volume (3M): 681.78K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.24
• Revenue Growth: 13.62%
• EPS Growth: 30.25%
• Country: US
• Employees: 300
• Sector: Technology
• Sector Strength: 40
• Industry: Software - Application
• EPS (TTM): -0.36
• Shares Outstanding: 188,142,820
• 10 Day Avg. Volume: 835,215
• 30 Day Avg. Volume: 681,785
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.47
• Price to Cash Flow (P/CF): -3.70
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.60
• Price Target Upside: 634.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Forge Global Holdings is navigating significant financial challenges with negative profitability and inadequate cash flow. Despite positive growth in marketplace revenue and strategic initiatives like a stock buyback, the stock remains under bearish technical pressure and lacks valuation appeal.

Positive Factors

Cost Management

Forge Global Holdings is making progress on expense initiatives, surpassing the original cost savings goal of $11.3 million with a total of $11.9 million.

Technological Advancements

The company has launched a number of tech products, enhancing market automation and data analytics to drive more liquidity.

Negative Factors

Economic Environment

Recovery from a depressed trough is complicated by many external variables, leading to a more conservative view on near-term estimates.

Revenue Performance

Forge reported net revenues of $18 million in the quarter, which were below consensus and estimate of $21 million.

Forge Global Holdings Business Overview & Revenue Model

Company Description

Forge Global Holdings (FRGE) is a leading provider in the financial technology sector, specializing in facilitating private market transactions. The company operates a platform that connects investors with private companies, enabling the buying and selling of pre-IPO shares. Forge Global offers a suite of services including liquidity solutions, data and insights, and a trusted marketplace to support the growth and transparency of private markets.

How the Company Makes Money

Forge Global Holdings generates revenue primarily through transaction fees charged on the trades conducted on its platform. The company earns money by facilitating the buying and selling of private company shares, where both buyers and sellers are charged a fee based on the transaction size. Additionally, Forge offers data and analytics services, providing market insights and valuations, which also contribute to its revenue streams. The company's partnerships with financial institutions and private companies are significant in maintaining a robust pipeline of shares for its marketplace, further enhancing its revenue potential.

Forge Global Holdings Financial Statement Overview

Summary

Forge Global Holdings shows slight revenue growth but struggles with profitability, resulting in negative margins. The balance sheet's low debt levels are positive, yet persistent net losses impact financial stability. Cash flows remain negative, indicating challenges in sustaining operations without external financing.

Income Statement

Forge Global Holdings has shown a decline in total revenue over the years, with the TTM (Trailing-Twelve-Months) revenue at $79.3 million compared to $69.8 million the previous year. The gross profit margin is negative, indicating cost of goods sold exceeds the revenue. Net profit margin remains negative due to consistent net losses, and both EBIT and EBITDA margins are also negative. Despite the slight revenue growth, the company struggles with profitability, impacting the overall income statement score.

Balance Sheet

The company's balance sheet shows a healthy equity ratio with stockholders' equity comprising a significant portion of total assets. The debt-to-equity ratio is low, reflecting limited leverage. However, return on equity is negative due to net losses, which undermines financial stability. Despite strong equity, the continuous losses present challenges.

Cash Flow

Operating cash flow remains negative, impacting the company's ability to generate cash internally. Free cash flow shows slight improvement but is still negative. The company's cash flow metrics indicate challenges in sustaining operations without external financing, though there is a moderate improvement in free cash flow growth.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
79.33M	69.82M	68.90M	128.06M	47.76M
	Gross Profit
-42.07M	69.39M	-112.94M	125.02M	43.87M
	EBIT
-94.69M	-91.45M	-135.04M	-8.91M	-7.62M
	EBITDA
-72.95M	-80.62M	-119.90M	-713.00K	-2.02M
	Net Income Common Stockholders
-66.33M	-90.22M	-111.91M	-18.50M	-9.71M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
105.14M	152.42M	193.14M	74.78M	40.58M
	Total Assets
263.51M	310.73M	363.73M	257.89M	258.50M
	Total Debt
14.57M	10.82M	7.44M	10.53M	31.29M
	Net Debt
-90.57M	-133.91M	-185.70M	-64.25M	-9.29M
	Total Liabilities
36.76M	42.31M	38.27M	64.48M	109.15M
	Stockholders Equity
223.58M	263.51M	319.39M	193.42M	149.35M
Cash Flow		Free Cash Flow
-41.33M	-41.98M	-75.46M	7.64M	-3.69M
	Operating Cash Flow
-40.53M	-41.46M	-68.81M	10.90M	-2.53M
	Investing Cash Flow
5.47M	-8.16M	-6.65M	-3.26M	-23.37M
	Financing Cash Flow
-3.89M	57.00K	192.86M	26.58M	39.38M

Forge Global Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRGE, the sentiment is Neutral. The current price of 0.49 is below the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.74, and below the 200-day MA of 1.09, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 39.90 is Neutral, neither overbought nor oversold. The STOCH value of 28.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FRGE.

Forge Global Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GS	75 Outperform	$146.32B	11.61	11.95%	2.50%	14.80%	77.97%
SCHW	72 Outperform	$128.76B	23.12	13.30%	1.48%	1.87%	17.63%
CG	68 Neutral	$12.96B	12.94	18.90%	3.90%	62.87%	―
MS	67 Neutral	$161.01B	12.56	13.16%	3.63%	7.16%	53.77%
BX	65 Neutral	$152.38B	34.53	36.95%	3.16%	21.25%	97.42%
Sector *	57 Neutral	$18.52B	9.81	-13.96%	2.71%	5.07%	-23.65%
FRGE	46 Neutral	$93.09M	―	-27.24%	―	13.62%	30.25%

Forge Global Holdings Corporate Events

Forge Global Holdings Announces Reverse Stock Split

On March 31, 2025, Forge Global Holdings announced that its Board of Directors approved a 1-for-15 reverse stock split of its Common Stock, effective April 14, 2025. This decision follows the approval by stockholders on March 27, 2025, and aims to meet the minimum bid price requirement for continued listing on the New York Stock Exchange. The reverse stock split will convert fifteen current shares into one new share, with adjustments made to equity incentive plans and outstanding warrants. Stockholders will receive cash for fractional shares, and no action is required from them to receive post-split shares.

Forge Global Appoints Brian McDonald to Board

On March 12, 2025, Eric Leupold announced his resignation from the Board of Directors of Forge Global Holdings, effective March 17, 2025. His departure was not due to any disagreements with the company. Subsequently, on March 17, 2025, Brian McDonald was appointed as a Class III director, joining the Audit and Risk Committees. McDonald, a seasoned leader in financial services, previously held significant roles at Morgan Stanley and Charles Schwab. His appointment is expected to bolster Forge’s strategic initiatives in financial technology and international expansion.

Forge Global Holdings Adopts 2025 Inducement Plan

On February 10, 2025, Forge Global Holdings’ Board of Directors adopted the 2025 Inducement Plan, allocating 1,500,000 shares of common stock to attract new employees or those returning after a period of non-employment. This strategic move is aimed at enhancing their workforce in alignment with NYSE rules, potentially impacting their market position by strengthening their human resources.

Forge Global Holdings Appoints New Chief Financial Officer

On January 14, 2025, Forge Global Holdings announced the appointment of James Nevin as its new Chief Financial Officer, effective January 20, 2025. Nevin, who has extensive experience from the London Stock Exchange Group, succeeds Mark Lee, who will transition to a new strategic role within the company. This leadership change is seen as a strategic move to drive Forge’s growth strategy and profitability, leveraging Nevin’s expertise to enhance revenue and expand margins globally.