Forum Markets reported second-quarter revenue of approximately $1.4 million, down from $2.9 million in the first quarter, as the company continued to shift its strategy toward income-producing real-world assets, expanded its aircraft-engine portfolio and outlined plans for an AI compute deployment expected to begin generating revenue in the fourth quarter.
Chairman and Chief Executive Officer McAndrew Rudisill said the company is focused on acquiring and managing cash-flowing assets in markets with durable demand, while preserving the option to tokenize those assets as the market for tokenized real-world assets develops. Forum’s core verticals include commercial aviation, AI infrastructure, manufactured housing and auto credit.
Buybacks Prioritized During the Quarter
Rudisill said the company viewed its shares as the most attractive available use of capital because of what management considered a disconnect between Forum’s market value and intrinsic value. The decision to prioritize repurchases over new revenue-generating assets affected quarterly results, he said.
The board extended the repurchase program through June 30, 2027, set aggregate authorization at $100 million and approved additional repurchase methods, including derivative transactions. Chief Financial Officer John Saunders said further buybacks will remain discretionary and will be assessed against liquidity needs, potential asset returns and Forum’s share price.
At June 30, Forum estimated net asset value at approximately $127.8 million, or $9.68 per undiluted share, based on approximately 13.2 million shares outstanding.
Revenue Declines Following Ethereum Sale
Saunders said second-quarter revenue was primarily driven by approximately $1.4 million of aircraft lease revenue. Manufactured-housing and auto-credit interest income totaled approximately $0.38 million, while interest and other financing income was approximately $0.42 million.
The quarter-over-quarter revenue decline reflected the elimination of $1.8 million in staking revenue after Forum sold most of its Ethereum holdings in March as part of its transition to its current operating model, Saunders said.
General and administrative expenses rose to approximately $10.3 million from $7.5 million in the first quarter. The expense figure included about $3.8 million of non-cash stock-based compensation and $1.8 million in one-time cash charges, including an early termination fee related to an asset manager agreement and U.K. taxes associated with settling a VAT repayment liability from the company’s legacy biotech business.
Forum reported a net loss from continuing operations of approximately $12.4 million, improving from a $77.5 million loss in the first quarter. Its adjusted EBITDA loss was approximately $7.4 million, compared with an adjusted EBITDA loss of roughly $76 million in the prior quarter. Saunders said first-quarter results included substantial digital-asset-related losses tied to the company’s balance-sheet repositioning.
Aircraft Engines and AI Compute Expected to Drive Second-Half Growth
At quarter-end, Forum had approximately $16.7 million of commercial aircraft-engine assets, $14.7 million of manufactured-housing loans, $2.5 million of auto loans and warehouse-financing assets, and $45.7 million of strategic equity investments. Total assets were approximately $159.1 million, including $48.4 million in cash, cash equivalents and marketable securities.
After the quarter ended, Forum deployed approximately $23.7 million to acquire two additional commercial aircraft engines. The purchases brought its aviation portfolio to five engines leased to two large U.S. airlines. Rudisill said both newly acquired engines were already under lease and generating contracted revenue when purchased, with the company targeting double-digit annual returns on the pair.
Saunders estimated that the five engines could generate between $5 million and $6 million of revenue in the second half of 2026, excluding any potential additional engine acquisitions.
Management also said it is in advanced stages of completing a phased AI compute transaction, which it expects to close and begin generating revenue from in the fourth quarter. Rudisill said the company has focused on finding AI infrastructure opportunities where it can acquire GPUs, deploy them with available power capacity and generate compute revenue immediately.
According to Saunders, the AI infrastructure project could represent about 50% of revenue within the company’s full-year guidance range and could contribute approximately $8 million to $12 million, depending on timing. Rudisill said AI compute returns in the structures under consideration are higher than the company’s baseline threshold of high-teens returns for potential investments.
- Full-year 2026 revenue guidance was reaffirmed at $18 million to $22 million.
- Management expects revenue growth to be uneven because it depends on transaction timing and capital deployment.
- Forum said it is striving to become cash-flow positive by early 2027.
Tokenization Remains a Long-Term Option
Forum said Liquidity.io remains part of its longer-term tokenization strategy, with a platform upgrade expected in the second half of 2026. Rudisill said the platform is working with Alpaca to integrate private-market systems, alongside capabilities for stock, cryptocurrency, options and fixed-income trading.
However, Rudisill said the market for tokenized private assets has not yet developed at significant scale. He said regulatory clarity, including potential passage of the CLARITY Act, could be important for broader token distribution and international trading. Until then, management said it is directing more attention and capital toward cash-generating AI compute and other operating assets.
Forum’s board special committee also continues to evaluate strategic opportunities. Rudisill said the process has advanced since the company’s previous call, though he declined to discuss potential counterparties or timing. He said Forum expects to provide shareholders with a meaningful update before its next earnings call.
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