Forge Global Holdings, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $25.3 million, a 31% increase from $19.2 million in the same period last year. The company's marketplace revenue surged by 88% year-over-year to $16.0 million, driven by a 132% increase in trading volume. However, custodial administration fees fell by 13% to $9.3 million, attributed to lower cash administration fees due to declining interest rates and reduced custodial client cash balances. The overall operating loss for the quarter was $16.5 million, an improvement from a loss of $25.0 million in the prior year.
In terms of operational metrics, Forge reported a total of 2,508 custodial accounts, a 17% increase from the previous year, and assets under custody rose to $17.6 billion, reflecting a 7% year-over-year growth. The company also noted a decrease in its net take rate to 2.3%, down from 3.2% a year earlier, primarily due to large block transactions executed at lower rates. The total number of trades executed increased to 963, marking a 59% rise compared to the same quarter last year.
Forge's total operating expenses for the quarter were $41.6 million, a slight decrease from $44.2 million in the prior year. Compensation and benefits expenses accounted for the largest portion, totaling $29.5 million, which included a notable increase in incentive compensation linked to the rise in marketplace revenue. The company also experienced a significant reduction in general and administrative expenses, which fell by 55% year-over-year, largely due to the absence of non-recurring legal settlement costs that impacted the previous year's figures.
The company’s cash and cash equivalents stood at $70.5 million as of March 31, 2025, down from $105.1 million at the end of 2024. This decline was primarily due to cash used in investing activities, which totaled $21.5 million, reflecting investments in short-term securities. Forge has initiated a share repurchase program of up to $10 million, with $10 million remaining available for repurchase as of the end of the quarter. Looking ahead, Forge Global Holdings remains focused on expanding its product offerings and enhancing its technology platform to drive future growth, while maintaining sufficient liquidity to support its operational needs.
About Forge Global Holdings, Inc.
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