Free cash flow remains consistently negative, with FCF margins reaching as low as -81.6% in 2023Q2, reflecting a structural inability to cover operating expenses through marketplace transaction revenue.
| Cash from Operations | -39.86M | -40.53M | -41.46M | -68.81M | 10.9M | -2.53M | 1.79M |
| Operating CF Margin % | - | -51.09% | -59.37% | -99.17% | 8.51% | -5.29% | 7.43% |
| Operating CF Growth % | -72.62% | 2.23% | 39.75% | -731.19% | 531.21% | -241.39% | - |
| Net Income | -62.62M | -67.84M | -91.55M | -111.91M | -18.5M | -9.71M | -15.24M |
| Depreciation & Amortization | 6.28M | 9.31M | 10.11M | 10.03M | 8.19M | 4.04M | 1.6M |
| Stock-Based Compensation | 20.51M | 30.49M | 34.33M | 57.92M | 12.23M | 4.91M | 7.29M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 5.31M | -8.14M | 9.25M | -10.31M | 6.29M | 1.18M | 1.64M |
| Working Capital Changes | -5.01M | -4.35M | -3.6M | -14.54M | 2.68M | -2.94M | 6.5M |
| Change in Receivables | -4.49M | -877K | -792K | 1.4M | 382K | -3.39M | 1.61M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 467K | 284K | -1.22M | 904K | -692K | -1.68M | 1.52M |
| Cash from Investing | -37.21M | 5.47M | -8.16M | -6.65M | -3.26M | -23.37M | -45.83M |
| Capital Expenditures | -446K | -792K | -527K | -220K | -3.26M | -13K | -218K |
| CapEx % of Revenue | 0.48% | 1% | 0.75% | 0.32% | 2.54% | 0.03% | 0.91% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | -19.21M | -44.87M |
| Investments | - | - | - | - | - | - | - |
| Other Investing | -9.21M | 6.26M | 0 | -6.43M | 0 | -4.15M | -743K |
| Cash from Financing | -5.57M | -3.89M | 57K | 192.86M | 26.58M | 39.38M | 40.1M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | -19.44M | -2.12M | 28.51M |
| Equity Issued (Net) | -919K | 528K | 0 | 1000K | 1000K | 1000K | 1000K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -4.14M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -1.55M | -4.42M | 57K | -15.64M | -3.36M | -25K | 71K |
| Net Change in Cash | -82.11M | -39.53M | -49.18M | 118.56M | 34.23M | 13.48M | -3.95M |
| Free Cash Flow | -40.3M | -41.33M | -41.98M | -75.46M | 7.64M | -3.69M | 1.13M |
| FCF Margin % | -43.39% | -52.09% | -60.13% | -108.75% | 5.97% | -7.73% | 4.69% |
| FCF Growth % | 0.38% | 1.57% | 44.36% | -1087% | 307.18% | -427.42% | - |
| FCF per Share | -3.02 | -3.38 | -3.63 | -7.81 | 2.11 | -1.07 | 0.33 |
| FCF Conversion (FCF/Net Income) | 0.64x | 0.61x | 0.46x | 0.62x | -0.59x | 0.26x | -0.12x |
| Interest Paid | 0 | 0 | 0 | 0 | 2.12M | 425K | 160K |
| Taxes Paid | 0 | 913K | 145K | 0 | 0 | 0 | 0 |
Persistent Operating Cash Burn
As reported in recent financial statements, Forge Global's operating cash flow consistently trails net income, with an OCF/NI ratio that fluctuated between 0.19 and 1.05 over the last ten quarters, suggesting that non-cash adjustments and working capital volatility significantly distort the company's underlying cash generation capabilities.
The persistent gap between net income and operating cash flow indicates that the company's reported losses do not fully capture the cash-based operational requirements of the business. Investors should monitor the reliance on stock-based compensation to bridge this gap, as it suggests that the firm's ability to retain talent is currently decoupled from its ability to generate positive cash flow from core operations.
Based on reported figures, Forge Global has failed to achieve positive free cash flow in any of the last ten quarters, with FCF margins reaching as low as -81.6% in 2023Q2, highlighting a structural inability to cover operating expenses and capital requirements through marketplace transaction revenue.
The consistent negative FCF trajectory suggests that the platform remains in a capital-intensive growth phase where revenue scale is insufficient to offset fixed costs. This trend warrants further investigation into whether the current business model can ever reach a self-sustaining state without significant changes to the take-rate or a substantial increase in transaction volume.
According to recent SEC filings, working capital changes have been highly erratic, swinging from a $4.3 million inflow in 2023Q3 to a $8.5 million outflow in 2024Q2, which reflects the inherent unpredictability of timing differences in secondary market settlements and custodial fee collections.
The volatility in working capital suggests that the company's cash position is highly sensitive to the timing of large private market transactions. This instability complicates cash flow forecasting and may indicate that the firm's liquidity is subject to the idiosyncratic settlement cycles of the venture-backed companies it serves.
As indicated by financial data, stock-based compensation has become a material component of the firm's expense structure, rising to $5.0 million in 2025Q3, which effectively masks the true cash cost of maintaining the specialized brokerage and technology talent required for platform operations.
By relying on equity-based incentives, the company avoids immediate cash outflows but dilutes existing shareholders to sustain its operations. Analysts should consider whether this reliance on non-cash compensation is a sustainable strategy for long-term talent retention or if it merely delays the inevitable pressure on cash reserves.
Quick answers to the most common questions about buying FRGE stock.
Forge Global Holdings, Inc. (FRGE) generated $-40.5M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Forge Global Holdings, Inc. (FRGE) reported negative free cash flow of $41.3M in 2024, indicating capital requirements exceeded cash from operations.
Forge Global Holdings, Inc. (FRGE) spent $0.8M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.