Forge(US:FRGE)2025-07-30 13:00Financial Data and Key Metrics Changes - Q2 2025 marked the second consecutive record-breaking quarter for revenue, reaching GBP 27.6 million, an increase of 10% from the previous quarter [20] - Adjusted EBITDA loss improved to GBP 5.4 million from GBP 8.9 million in the prior quarter, reflecting a 39% improvement [22] - Total revenues less transaction-based expenses for the first six months of 2025 were GBP 52.7 million, a 28% year-over-year increase [25] Business Line Data and Key Metrics Changes - Market-based revenues in Q2 were GBP 18.6 million, up 16% from Q1 [20] - Trading volume increased by 9% from GBP 692 million to GBP 756 million quarter over quarter, with total trading volume in 2025 already exceeding the full year 2024 volume [21] - Custodial administration fees remained broadly flat at GBP 9.1 million, while custodial client cash balances decreased slightly to GBP 440 million [21] Market Data and Key Metrics Changes - The private market is experiencing renewed strength, with over 174 companies going public in 2025, raising more than $31 billion [29] - The median bid-ask spread compressed to 3%, the lowest level since February 2021, indicating rising price confidence [29] - Median private market valuations have trended up since bottoming out in 2023, with the private AI sector leading performance [30][31] Company Strategy and Development Direction - The company is focused on three priorities: opening the market to new participants, expanding technology-enabled competitive edge, and executing with discipline [16] - Forge aims to become the central nervous system of the private market, delivering a broad order book and setting standards for pricing and transparency [14] - The launch of the next-generation marketplace is designed to reduce friction and enable investors to transact with confidence [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the IPO market and its influence on platform activity, noting ongoing uncertainty [36] - The company is confident in its growth trajectory and path to profitability, expecting to reach adjusted EBITDA breakeven in 2026 [25][28] - Regulatory momentum is seen as favorable, with policymakers exploring broader access to private markets [58][60] Other Important Information - The company has closed the acquisition of Liquidity, expanding its asset management and wealth capabilities [19] - The recent launch of Forge Price is positioned as the industry's most trusted pricing standard, providing daily pricing for nearly 200 private companies [12] Q&A Session Summary Question: How is the U.S. IPO market influencing activity on the platform? - Management noted a correlation between a healthy IPO window and increased volume, expressing cautious optimism about market conditions [36] Question: What is the company's stance on tokenization of private companies? - The company is monitoring the tokenization space and believes that partnerships will be crucial for entering this emerging market [39] Question: Where is the volume strength coming from? - The company observed a shift towards more institutional trading in Q2, with a more even distribution of trade sizes compared to Q1 [47] Question: Can you provide an update on reaching breakeven in 2026? - Management is confident about achieving breakeven in 2026, with cost actions already taken and operational scalability expected to improve [65] Question: What are the regulatory measures needed for broader private market participation? - Management highlighted ongoing bipartisan efforts to improve access to private markets, including changes to accredited investor definitions [58][60]