Forge Global Holdings (FRGE) AI Stock Analysis

• Market Cap: $298.41M
• Dividend Yield: N/A
• Average Volume (3M): 101.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.63
• Revenue Growth: 14.78%
• EPS Growth: 21.87%
• Country: US
• Employees: 300
• Sector: Financial
• Sector Strength: 70
• Industry: Software - Application
• EPS (TTM): -1.34
• Shares Outstanding: 13,601,362
• 10 Day Avg. Volume: 165,304
• 30 Day Avg. Volume: 101,078
• PEG Ratio: 0.08
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 2.15
• P/FCF Ratio: -4.12
• Enterprise Value/Market Cap: 0.58
• Enterprise Value/Revenue: 1.91
• Enterprise Value/Gross Profit: -7.96
• Enterprise Value/Ebitda: -2.85
• 1Y Price Target: $41.33
• Price Target Upside: 88.38% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 58 Neutral
• Price Target: $23.00 ▲(4.83% Upside)

Forge Global Holdings' overall stock score is driven by strong technical indicators and positive sentiment from the latest earnings call, which highlight growth and strategic initiatives. However, significant challenges in profitability and cash flow generation, alongside a concerning valuation, weigh heavily on the score. The company's ability to address these financial challenges will be crucial for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong marketplace performance and expanding market reach, which are crucial for long-term business sustainability.

Strategic Acquisitions

Strategic acquisitions like Accuidity enhance Forge's service offerings, potentially increasing market share and competitive positioning in the fintech industry.

Improved EBITDA

Improved EBITDA indicates better operational efficiency and cost management, which are critical for achieving long-term profitability.

Negative Factors

Profitability Challenges

Ongoing profitability challenges can hinder long-term growth and investment potential, requiring strategic efforts to improve margins.

Cash Flow Issues

Negative free cash flow reflects operational inefficiencies and reliance on external financing, impacting financial stability and growth potential.

Revenue Forecasting Challenges

Difficulty in forecasting transaction-based revenue can lead to unpredictable financial performance, affecting strategic planning and investor confidence.

Forge Global Holdings Business Overview & Revenue Model

Company Description

Forge Global Holdings (FRGE) is a financial technology company that operates in the private securities market, providing a platform for investors to buy and sell shares in private companies. The company focuses on facilitating liquidity for private equity investments and offers services that include equity management, trading, and data analytics. Forge aims to streamline the process of investing in private companies, making it more accessible for both institutional and accredited investors.

How the Company Makes Money

Forge Global Holdings generates revenue through several key streams, primarily by charging fees for transactions conducted on its platform. This includes commissions on trades executed between buyers and sellers of private equity shares. Additionally, the company may earn revenue by providing data analytics services to institutional investors, offering insights into market trends and valuations of private companies. Significant partnerships with venture capital firms and private equity funds also enhance its service offerings and contribute to its earnings, as these partnerships enable Forge to expand its network and attract more users to its platform.

Forge Global Holdings Financial Statement Overview

Summary

Forge Global Holdings shows potential with revenue growth and a strong equity position, but faces significant challenges in achieving profitability and generating positive cash flow. Persistent losses and negative cash flows are critical areas that require strategic focus.

Income Statement

Forge Global Holdings has experienced a decline in revenue from its peak in 2021, with the TTM (Trailing-Twelve-Months) revenue showing modest growth over 2024. Despite this growth, the company continues to struggle with profitability, as indicated by negative gross and net profit margins. The EBIT and EBITDA margins are also negative, reflecting ongoing operational challenges. The revenue growth trajectory is positive but overshadowed by persistent losses.

Balance Sheet

The balance sheet reveals a strong equity base with an improving debt position, as evidenced by low and declining levels of total debt. The equity ratio remains healthy, indicating strong shareholder backing. However, there is a significant decline in total assets, and while the debt-to-equity ratio is favorable, the company must leverage its equity to improve profitability and asset utilization.

Cash Flow

Cash flow analysis shows ongoing negative free cash flow, although the free cash flow deficit has slightly decreased from previous periods. The operating cash flow to net income ratio is concerning, reflecting inefficiencies in converting income into cash. The company must improve operational efficiencies to stabilize cash flows and reduce reliance on external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.84M	79.33M	69.82M	68.90M	128.06M	47.76M
Gross Profit	-21.74M	-42.07M	69.39M	-112.94M	125.02M	43.87M
EBITDA	-60.72M	-72.95M	-80.62M	-119.90M	-713.00K	-2.02M
Net Income	-66.88M	-66.33M	-90.22M	-111.91M	-18.50M	-9.71M
Balance Sheet
Total Assets	242.84M	263.51M	310.73M	363.73M	257.89M	258.50M
Cash, Cash Equivalents and Short-Term Investments	81.84M	106.21M	152.42M	193.14M	74.78M	40.58M
Total Debt	14.87M	14.57M	10.82M	7.44M	10.53M	31.29M
Total Liabilities	42.74M	36.76M	42.31M	38.27M	64.48M	109.15M
Stockholders Equity	196.38M	223.58M	263.51M	319.39M	193.42M	149.35M
Cash Flow
Free Cash Flow	-34.90M	-41.33M	-41.98M	-75.46M	7.64M	-3.69M
Operating Cash Flow	-34.33M	-40.53M	-41.46M	-68.81M	10.90M	-2.53M
Investing Cash Flow	-26.77M	5.47M	-8.16M	-6.65M	-3.26M	-23.37M
Financing Cash Flow	-5.83M	-3.89M	57.00K	192.86M	26.58M	39.38M

Forge Global Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 21.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FRGE, the sentiment is Positive. The current price of 21.94 is above the 20-day moving average (MA) of 18.03, above the 50-day MA of 17.61, and above the 200-day MA of 15.17, indicating a bullish trend. The MACD of 1.19 indicates Negative momentum. The RSI at 72.52 is Negative, neither overbought nor oversold. The STOCH value of 92.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FRGE.

Forge Global Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRGE	―	$298.41M	―	-28.14%	―	14.78%	21.87%
ONTF	―	$233.53M	―	-22.60%	―	-6.88%	15.83%
TEAD	―	$140.56M	―	-16.75%	―	19.67%	-1183.48%
COE	―	$287.11M	-43.96	―	―	91.86%	52.66%
NRDY	―	$183.92M	―	-105.81%	―	-10.85%	-15.09%
EB	―	$222.92M	―	-11.81%	―	-11.54%	-54.32%

Forge Global Holdings Corporate Events

Forge Global Holdings Enters New Headquarters Lease Agreement

Forge Global Holdings, Inc., through its subsidiary Forge Global, Inc., has entered into a lease agreement for its headquarters at Four Embarcadero Center in San Francisco, California. The lease, effective from February 1, 2026, to May 31, 2031, follows a previous sublease and includes an initial annual base rent of approximately $1,983,000 with a 3% annual increase. The company will also cover a share of the building’s operating expenses and provide a security deposit.

The most recent analyst rating on (FRGE) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Forge Global Holdings stock, see the FRGE Stock Forecast page.