Forum Markets Incorporated (FRMM) Q2 2026 earnings summary

Executive summary

• Focused on disciplined capital allocation, monetizing real-world assets, and building a portfolio of cash-generating assets in scalable, complex markets with durable demand, including commercial aviation, AI infrastructure, modular home, and auto financing.

• Transitioned from legacy operations to a blockchain-enabled RWA tokenization and digital asset business model, with all current operations focused on digital asset management, tokenization, and income-generating asset investments.

• Repurchased approximately 7.1 million shares (35% of prior outstanding), retiring all acquired shares to address perceived undervaluation, with authorization extended to $100 million through June 2027.

• Board special committee process advancing, with an update expected before the next earnings call; strategic alternatives under review.

• Continued expansion in tokenized real-world assets, notably commercial aircraft engines and AI infrastructure, and announced a 15% stake in Satschel, Inc., parent of Liquidity.io.

Financial highlights

• Q2 2026 revenue was $1.4 million, down from $2.9 million in Q1, primarily due to the elimination of $1.8 million in staking revenue after selling most Ethereum holdings.

• Net loss from continuing operations was $12.4 million, a significant improvement from $77.5 million in Q1.

• Adjusted EBITDA loss was $7.4 million, compared to $76 million in Q1, reflecting a cleaner expense structure post-digital asset repositioning.

• General and administrative expenses were $10.3 million, including $3.8 million in non-cash stock-based compensation and $1.8 million in one-time cash charges.

• Net asset value (NAV) at quarter-end was $127.8 million, or $9.68 per undiluted share.

Outlook and guidance

• Full-year 2026 revenue guidance remains $18 million–$22 million, with uneven growth expected due to transaction timing and revenue weighted toward H2.

• AI infrastructure is expected to contribute over 50% of H2 revenue, with $8–$12 million anticipated from this segment in Q4.

• Aircraft engine revenue for H2 projected at $5–$6 million, with potential for further engine acquisitions.

• Targeting cash flow positivity by early 2027 and year-end 2027 AUM of $300M–$400M, with anticipated year-over-year revenue growth of 50%–100% in 2027.

• Expects to exit 2026 with $100M–$175M in assets under management across on-balance sheet and pre-tokenization portfolios.