Forum Markets has moved from concept to execution in RWA tokenization with the February launch of Eurus Aero Token One and is building an asset origination pipeline via partnerships with Aero Engine Solutions, Karus, and Zippi to target auto credit, residential lending, equipment finance, and commercial real estate.

Despite launching products, the company reported heavy losses (Q4 net loss of about $229.7 million, full-year $450.5 million) but says it now holds approximately $103 million in cash, has zero net debt, has eliminated direct ETH price exposure, and plans to deploy cash into asset purchases in the coming months.

For 2026 Forum guides platform AUM of $125 million to $200 million and revenue of $18 million to $26 million, and targets year-end 2027 AUM of $300 million to $400 million with an aim for positive cash flow in 2027.

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Forum Markets used its fiscal fourth-quarter earnings call to outline progress on its strategy to “modernize capital markets through the tokenization of institutional-grade real-world assets,” highlighting the February launch of its first tokenized product, efforts to expand asset origination pipelines, and initial guidance for 2026 platform growth.

Chairman and CEO McAndrew Rudisill said the company is focused on bringing “real-world credit on chain,” targeting verticals such as auto credit, residential lending, equipment finance, and commercial real estate. Rudisill argued these markets remain largely “untokenized and inaccessible,” and said blockchain-based settlement could reduce friction created by “fragmented, manual, and batch processes.”

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Rudisill also described Forum’s intended revenue model as multi-pronged, including:

Yield on assets acquired or financed prior to tokenization

Economics from structuring and originating tokenized products

Recurring revenue from managing assets

Potential upside from trading activity as secondary liquidity develops

He characterized the approach as combining “immediate cash flow generation while building long-term scale,” and stressed that the company’s model does not require “Ethereum price exposure” or “token price speculation,” but instead relies on “real assets generating real cash flows with tokenization as the scaling mechanism on top.”

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Rudisill highlighted partnerships and investments aimed at building an asset “supply chain” across multiple credit categories. He pointed to the company’s partnership with Aero Engine Solutions and strategic investments in Karus and Zippi.

According to Rudisill, Aero Engine Solutions provides a pipeline of aircraft engines leased to major airlines and supports Forum’s aircraft engine token program. He said Karus brings “AI-driven analytics” and relationships across the auto lending ecosystem, while Zippi provides a digital origination platform for manufactured housing finance.

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Rudisill said both Karus and Zippi are performing in line with expectations. He added that Zippi is moving from an initial build phase to “significant scale and margin expansion,” with expectations to double annual revenue and reach EBITDA profitability by late 2026. He said Karus is working to optimize underwriting models while expanding its customer network and originations, targeting “over $50 million in monthly originations” in the latter half of 2026.

Forum “moved from RWA tokenization concept to actual execution” with the February launch of Eurus Aero Token One on liquidity.io, Rudisill said. He described the product as backed by “contracted cash flows from jet engines on lease with a major U.S. air carrier,” offered to qualified investors through what he called a compliant, institutional-grade framework.

Rudisill said the company’s next priorities are expanding its menu of token offerings and building distribution. On the retail side, he said Liquidity.io is Forum’s primary distribution platform and that Forum expects to begin ramping marketing “as Liquidity.io grows their user base” through expanded offerings, including crypto trading and tokenized equities. On the institutional side, he said the company is in discussions with large financial institutions, family offices, and private platforms interested in tokenized real-world credit products, though he noted that institutional distribution will take time to develop.

CFO John Saunders said Forum’s current operating strategy began in August 2025 following recapitalization and repositioning, making fiscal 2025 a partial year under the new model. He also said the company plans to emphasize operational metrics such as platform assets under management, yield generated from the asset base, and tokenization issuance activity.

For the fourth quarter, Saunders reported revenue of approximately $2.4 million, and $6.5 million for the full year. He said fourth-quarter revenue reflected the “deliberate wind down” of staking activities as the company monetized ETH holdings, and cautioned that third-quarter revenue of $4.1 million was primarily driven by staking yields and incentive tokens and “is therefore not a relevant baseline.”

Selling, general and administrative expenses were approximately $12 million in the fourth quarter and $240 million for the full year. Saunders said the third quarter included significant non-recurring and non-cash charges tied to the corporate transformation, including about $208 million of stock-based compensation related primarily to warrant issuances and financing transactions during the restructuring.

Net loss for the fourth quarter totaled approximately $229.7 million, compared with a net loss of $216.7 million in the third quarter. Net loss for the full year was $450.5 million. Adjusted EBITDA loss was $224.3 million in the fourth quarter and $218.5 million for the full year.

On the balance sheet, Saunders said that as of Dec. 31, 2025, Forum reported total assets of approximately $306.3 million and cash and cash equivalents of approximately $8 million at that date. He also noted that in December the company announced plans to redeem its $516 million aggregate principal amount of 2028 convertible notes, which management said would simplify the balance sheet and improve flexibility.

Both Rudisill and Saunders emphasized that the company has eliminated direct ETH price exposure on its balance sheet through ETH sales and derivative hedging. Saunders said the company currently holds 12,441 ETH as collateral associated with a “3.5% ETH collateralized loan,” intends to hold the loan to term, and has hedged the remaining ETH position—stating the company has “essentially eliminated direct exposure to ETH.”

Saunders said the company’s “current cash and cash equivalent position” is $103 million. He also provided a breakdown of holdings that included $18.8 million in aircraft engine assets, $1.7 million in auto loans, and $6.1 million in manufactured home loans, as well as equity holdings in Liquidity.io’s parent company Satschel, Karus, and Zippi of $13.7 million, $9.8 million, and $22.3 million, respectively. Saunders also said the company has “zero net debt.”

Forum introduced initial 2026 guidance, with Saunders projecting year-end 2026 platform assets under management of $125 million to $200 million across tokenized and pre-tokenization credit portfolios. He said the range reflects existing pipelines in aircraft engines, auto credit, manufactured housing, and two new origination channels the company is establishing in commercial real estate and equipment financing.

For full-year 2026 revenue, Saunders guided to $18 million to $26 million, citing yield income, structuring and origination fees from tokenized product launches, and early-stage asset management economics. He said Forum is not providing earnings guidance as it continues investing in platform infrastructure and origination capabilities.

Asked by Benchmark’s Mark Palmer what could drive results toward the high end of the ranges, Rudisill said demand across pipelines exceeds the guidance but is “subject to capital.” Saunders added that the ability to deploy capital “in the next month or two,” alongside ramping token sales later in the year and generating fee revenue sooner, would support the high end of guidance.

Rudisill also discussed the company’s approach to sourcing assets in two new verticals. For AI data center equipment financing, he said Forum has made “direct inroads with some of the largest chip distributors and chip manufacturers in the United States” and is building a pipeline to finance chip purchases for “neoclouds and hyperscalers.” For commercial real estate, he said the company has been evaluating “large institutional partners” and identified a high-quality partner to access the market, adding that neither vertical requires equity investments by Forum “today” to execute on financing.

In response to a question from Sidoti’s Brendan McCarthy about funding asset purchases, Rudisill said Forum plans to deploy its $103 million cash balance over the next couple of months into asset purchases and facilities to generate revenue, then consider raising additional capital if opportunities arise.

Management also discussed the cadence of asset acquisition. Saunders said the company had approximately $27 million in assets that “are prepared or are already tokenized,” with additional loan closings expected shortly, and said the company expects AUM “to pop in Q2.” Rudisill added that, including cash, physical asset investments, credit, and equity investments, “total assets” were approximately $175 million to $185 million at the time of the call, with 20.3 million shares outstanding.

Looking further out, Saunders said the company is targeting year-end 2027 AUM of $300 million to $400 million, which “could result” in year-over-year revenue growth of 50% to 100% in 2027. He also said Forum is targeting positive cash flow in 2027.

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