Forum Funds

02/20/2026 | Press release | Distributed by Public on 02/20/2026 06:27

Annual Report by Investment Company (Form N-CSR)

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number 811-03023
FORUM FUNDS
190 Middle Street, Suite 101
Portland, Maine 04101
Zachary Tackett, Principal Executive Officer
190 Middle Street, Suite 101
Portland, Maine 04101
207-347-2000
Date of fiscal year end December 31
Date of reporting period: January 1, 2025 - December 31, 2025

ITEM 1. REPORT TO SHAREHOLDERS.
(a) A copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Investment Company Act, as amended ("Act"), is attached hereto.

Lisanti Small Cap Growth Fund

ASCGX

Annual Shareholder Report - December 31, 2025

Fund Overview

This annual shareholder report contains important information about the Lisanti Small Cap Growth Fund for the period of January 1, 2025, to December 31, 2025, including certain material changes to the Fund that occurred during the period. You can find additional information about the Fund at https://lisantismallcap.com/investing-in-the-fund. You can also request this information by contacting us at (800) 441-7031.

What were the Fund's costs for the last year?

(based on a hypothetical $10,000 investment)

Fund Name
Costs of a $10,000 investment
Costs paid as a percentage of a $10,000 investment
Lisanti Small Cap Growth Fund
$182
1.74%

Total Return Based on a $10,000 Investment

Date
Lisanti Small Cap Growth Fund
Russell 2000® Index
Russell 2000 Growth Index
12/31/15
$10,000
$10,000
$10,000
03/31/16
$9,121
$9,848
$9,532
06/30/16
$9,206
$10,222
$9,841
09/30/16
$10,248
$11,146
$10,748
12/31/16
$10,732
$12,131
$11,132
03/31/17
$11,351
$12,430
$11,727
06/30/17
$12,107
$12,736
$12,242
09/30/17
$12,857
$13,458
$13,003
12/31/17
$13,714
$13,908
$13,599
03/31/18
$14,181
$13,896
$13,912
06/30/18
$15,573
$14,973
$14,918
09/30/18
$17,447
$15,509
$15,742
12/31/18
$13,454
$12,376
$12,334
03/31/19
$15,816
$14,181
$14,448
06/30/19
$16,804
$14,478
$14,845
09/30/19
$15,794
$14,130
$14,226
12/31/19
$16,902
$15,535
$15,847
03/31/20
$13,189
$10,779
$11,764
06/30/20
$18,323
$13,519
$15,362
09/30/20
$20,156
$14,185
$16,461
12/31/20
$25,834
$18,636
$21,335
03/31/21
$27,270
$21,002
$22,375
06/30/21
$28,530
$21,904
$23,251
09/30/21
$27,762
$20,949
$21,937
12/31/21
$28,595
$21,397
$21,939
03/31/22
$24,474
$19,787
$19,169
06/30/22
$18,259
$16,385
$15,478
09/30/22
$18,336
$16,026
$15,516
12/31/22
$17,907
$17,024
$16,157
03/31/23
$18,767
$17,491
$17,138
06/30/23
$19,298
$18,401
$18,347
09/30/23
$17,173
$17,457
$17,004
12/31/23
$18,688
$19,906
$19,171
03/31/24
$21,242
$20,938
$20,625
06/30/24
$21,864
$20,251
$20,023
09/30/24
$23,074
$22,129
$21,707
12/31/24
$23,865
$22,203
$22,077
03/31/25
$19,761
$20,099
$19,623
06/30/25
$23,135
$21,807
$21,971
09/30/25
$26,015
$24,510
$24,650
12/31/25
$26,199
$25,047
$24,949

The above chart represents historical performance of a hypothetical $10,000 investment over the past 10 years. Updated performance can be found www.lisantismallcap.com/portfolio-performance. Effective May 1, 2024, the Fund changed its primary benchmark from the Russell 2000 Growth Index to the Russell 2000 Index due to regulatory requirements. The Fund retained the Russell 2000 Growth Index as a secondary benchmark because the Russell 2000 Growth Index more closely aligns with the Fund's investment strategies and investment restrictions.

How did the Fund perform in the last year?

The Fund underperformed the Russell 2000® Index in 2025. Performance of the Fund in 2025 was driven by individual stock selection and style bias. The Fund's investment process focuses on companies that have individual, idiosyncratic drivers of growth and are showing or on the path to show strong operating leverage. This focus was the main driver of performance. At the sector level, the Industrials sector was the strongest contributor to performance, as the Fund benefited from our focus on smaller, technology focused defense companies and companies involved in the Artificial Intelligence infrastructure/data center buildout. The Information Technology sector was also a strong contributor, driven by our focus on Artificial Intelligence beneficiaries. Materials, Communication Services, Financials and Industrials also contributed to the Fund's performance. Consumer Discretionary and Health Care were the largest detractors to performance; Consumer Discretionary suffered as tariff worries hit the sector in the first part of the year and investors worried about the health of the consumer through most of 2025. Health Care's underperformance was driven by stock selection, as several of the Fund's holdings had fundamental issues. Our top three contributors were Lumentum Holdings, Inc.; Credo Technology Group Holding Ltd., and Kratos Defense & Security Solutions Inc. Our bottom three detractors were RH; FTAI Aviation Ltd., and Inspire Medical Systems Inc.

During the year ended December 31, 2025, the Fund's use of current investment strategies did not cause the Fund's performance to deviate materially from the manager's expectations.

The Fund's past performance is not a good predictor of how the Fund will perform in the future. The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.

Average Annual Total Returns

One Year
Five Year
Ten Year
Lisanti Small Cap Growth Fund
9.78%
0.28%
10.11%
Russell 2000®Index
12.81%
6.09%
9.62%
Russell 2000 Growth Index
13.01%
3.18%
9.57%

Fund Statistics

Total Net Assets
$17,456,781
# of Portfolio Holdings
93
Portfolio Turnover Rate
358%
Investment Advisory Fees (Net of fees waived)
$42,169

Sector Weightings

(% total investments)*

Value
Value
Industrials
26.6%
Health-Care
26.3%
Information Technology
23.4%
Consumer Discretionary
14.2%
Financials
4.1%
Materials
3.3%
Communication Services
1.2%
Energy
0.9%

* excluding cash equivalents

Top Ten Holdings

(% total investments)*

Mercury Systems, Inc.
2.25%
JFrog, Ltd.
2.18%
Carpenter Technology Corp.
2.15%
SiTime Corp.
1.93%
Alphatec Holdings, Inc.
1.89%
Huron Consulting Group, Inc.
1.87%
Five Below, Inc.
1.86%
Ligand Pharmaceuticals, Inc.
1.85%
BrightSpring Health Services, Inc.
1.84%
Klaviyo, Inc., Class A
1.82%

* excluding cash equivalents

Asset Class Weightings

(% total investments)

Value
Value
Common Stock
98.0%
Money Market Fund
2.0%

Material Fund Changes

Lisanti Capital Growth, LLC (the "Adviser") had contractually agreed to waive its fee and/or reimburse Fund expenses to limit Total Annual Fund Operating Expenses to 1.35% (subject to certain exclusions) through April 30, 2025 (the "Expense Cap"). On May 1, 2025, the Expense Cap expired without renewal by Forum Funds' Board of Trustees (the "Board"). Effective May 1, 2025, the Adviser voluntarily agreed to waive its fee and/or reimburse Fund expenses to limit the Fund's Total Annual Fund Operating Expenses to 1.99% (subject to certain exclusions). This expense limitation will continue on a voluntary basis at the Adviser's discretion, based on consultation with the Board. Amounts waived pursuant to the voluntary expense limitation arrangement are not subject to recoupment. Other fund service providers have agreed to waive a portion of their fees and such waivers may be changed or eliminated with the approval of the Board.

Lisanti Small Cap Growth Fund

Annual Shareholder Report - December 31, 2025

Where can I find additional information about the fund?

If you wish to view additional information about the Fund; including but not limited to its prospectus, holdings, financial information, and proxy voting information, please visit https://lisantismallcap.com/investing-in-the-fund or scan the QR code.

228A-ASCGX-25

(b) Not applicable.
ITEM 2. CODE OF ETHICS.
(a) As of the end of the period covered by this report, Forum Funds (the "Registrant") has adopted a code of ethics, which applies to its Principal Executive Officer and Principal Financial Officer (the "Code of Ethics").
(c) There have been no amendments to the Registrant's Code of Ethics during the period covered by this report.
(d) There have been no waivers to the Registrant's Code of Ethics during the period covered by this report.
(e) Not applicable.
(f)(1) A copy of the Code of Ethics is being filed under Item 19(a)(1) hereto.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The Board of Trustees has determined that the Registrant has an audit committee financial expert, as defined in Item 3 of Form N-CSR, serving on its audit committee.
(a)(2) The audit committee financial expert, Mr. Mark Moyer, is a non-"interested" Trustee (as defined in Item 3(a)(2) of Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant for the audit of the Registrant's annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $15,200 in 2024 and $15,200 in 2025.
(b) Audit-Related Fees - The aggregate fees billed in the Reporting Periods for assurance and related services rendered by the principal accountant that were reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2024 and $0 in 2025.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $3,300 in 2024 and $3,300 in 2025. These services consisted of review or preparation of U.S. federal, state, local and excise tax returns.
(d) All Other Fees - The aggregate fees billed in the Reporting Periods for products and services provided by the principal accountant to the Registrant, other than the services reported in paragraphs (a) through (c) of this Item, were $0 in 2024 and $0 in 2025.
(e)(1) The Audit Committee reviews and approves in advance all audit and "permissible non-audit services" (as that term is defined by the rules and regulations of the U.S. Securities and Exchange Commission) to be rendered to a series of the Registrant (each, a "Series"). In addition, the Audit Committee reviews and approves in advance all "permissible non-audit services" to be provided to an investment adviser (not including any sub-adviser) of a Series, or an affiliate of such investment adviser, that is controlling, controlled by or under common control with the investment adviser and provides on-going services to the Registrant ("Affiliate"), by the Series' principal accountant if the engagement relates directly to the operations and financial reporting of the Series. The Audit Committee considers whether fees paid by a Series' investment adviser or an Affiliate to the Series' principal accountant for audit and permissible non-audit services are consistent with the principal accountant's independence.
(e)(2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
(f) Not applicable
(g) The aggregate non-audit fees billed by the principal accountant for services rendered to the Registrant for the Reporting Periods were $0 in 2024 and $0 in 2025. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant's investment adviser or any Affiliate.
(h) During the Reporting Period, the Registrant's principal accountant provided no non-audit services to the investment advisers or any entity controlling, controlled by or under common control with the investment advisers to the series of the Registrant to which this report relates.
(i) Not applicable. The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the "PCAOB") has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
(j) Not applicable. The Registrant is not a "foreign issuer," as defined in 17 CFR 240.3b-4.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Included as part of financial statements filed under Item 7(a).
(b) Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
(a)
Lisanti
Small
Cap
Growth
Fund
Annual
Financials
and
Other
Information
December
31,
2025
TABLE
OF
CONTENTS
Schedule
of
Investments
1
Statement
of
Assets
and
Liabilities
3
Statement
of
Operations
4
Statements
of
Change
in
Net
Assets
5
Financial
Highlights
6
Notes
to
Financial
Statements
7
Report
of
Independent
Registered
Public
Accounting
Firm
13
Important
Tax
Information
(Unaudited)
15
Other
Information
(Unaudited)
16
Lisanti
Small
Cap
Growth
Fund
SCHEDULE
OF
INVESTMENTS
December
31,
2025
1
See
Notes
to
Financial
Statements.
Shares
Security
Description
Value
Common
Stock
-
97.8%
‌
Communication
Services
-
1.2%
7,670‌
EverQuote,
Inc.,
Class A
(a)
$
207,090‌
Consumer
Discretionary
-
13.9%
1,130‌
Abercrombie
&
Fitch
Co.
(a)
142,233‌
4,285‌
BJ's
Restaurants,
Inc.
(a)
168,829‌
1,700‌
Boot
Barn
Holdings,
Inc.
(a)
299,999‌
2,655‌
Dutch
Bros,
Inc.,
Class A
(a)
162,539‌
1,690‌
Five
Below,
Inc.
(a)
318,329‌
5,720‌
Macy's,
Inc.
126,126‌
2,720‌
Meritage
Homes
Corp.
178,976‌
8,010‌
National
Vision
Holdings,
Inc.
(a)
206,818‌
3,895‌
On
Holding
AG,
Class A
(a)
181,040‌
780‌
Patrick
Industries,
Inc.
84,575‌
1,495‌
Planet
Fitness,
Inc.,
Class A
(a)
162,163‌
2,870‌
Steven
Madden,
Ltd.
119,507‌
1,065‌
Urban
Outfitters,
Inc.
(a)
80,152‌
1,940‌
Wayfair,
Inc.,
Class A
(a)
194,795‌
2,426,081‌
Energy
-
0.8%
3,185‌
Solaris
Energy
Infrastructure,
Inc.,
Class A
146,415‌
Financials
-
4.1%
1,785‌
Coastal
Financial
Corp./WA
(a)
204,543‌
1,730‌
Enova
International,
Inc.
(a)
271,956‌
680‌
Piper
Sandler
Cos.
231,003‌
707,502‌
Health-Care
-
25.7%
5,690‌
Adaptive
Biotechnologies
Corp.
(a)
92,406‌
4,500‌
ADMA
Biologics,
Inc.
(a)
82,080‌
15,360‌
Alphatec
Holdings,
Inc.
(a)
323,174‌
1,230‌
ANI
Pharmaceuticals,
Inc.
(a)
97,096‌
15,880‌
ARS
Pharmaceuticals,
Inc.
(a)
185,002‌
5,945‌
Axogen,
Inc.
(a)
194,580‌
2,320‌
Beta
Bionics,
Inc.
(a)
70,690‌
8,370‌
BrightSpring
Health
Services,
Inc.
(a)
313,456‌
2,320‌
Crinetics
Pharmaceuticals,
Inc.
(a)
107,996‌
3,015‌
Cytokinetics,
Inc.
(a)
191,573‌
6,265‌
Dyne
Therapeutics,
Inc.
(a)
122,543‌
1,485‌
GeneDx
Holdings
Corp.
(a)
193,139‌
970‌
Glaukos
Corp.
(a)
109,523‌
1,565‌
Guardant
Health,
Inc.
(a)
159,849‌
2,405‌
HeartFlow,
Inc.
(a)
70,106‌
2,235‌
Hinge
Health,
Inc.,
Class A
(a)
103,816‌
905‌
Ionis
Pharmaceuticals,
Inc.
(a)
71,595‌
695‌
iRhythm
Technologies,
Inc.
(a)
123,321‌
1,670‌
Ligand
Pharmaceuticals,
Inc.
(a)
315,747‌
Shares
Security
Description
Value
Health-Care
-
25.7%
(continued)
6,595‌
Newamsterdam
Pharma
Co.
NV
(a)
$
231,353‌
1,675‌
Palvella
Therapeutics,
Inc.
(a)
175,322‌
1,960‌
PROCEPT
BioRobotics
Corp.
(a)
61,662‌
565‌
Repligen
Corp.
(a)
92,581‌
3,170‌
SI-BONE,
Inc.
(a)
62,512‌
10,730‌
Tandem
Diabetes
Care,
Inc.
(a)
235,845‌
2,610‌
Tarsus
Pharmaceuticals,
Inc.
(a)
213,707‌
2,330‌
TransMedics
Group,
Inc.
(a)
283,445‌
5,345‌
Travere
Therapeutics,
Inc.
(a)
204,232‌
4,488,351‌
Industrials
-
26.0%
2,250‌
Allient,
Inc.
120,937‌
8,015‌
Amprius
Technologies,
Inc.
(a)
63,238‌
445‌
Applied
Industrial
Technologies,
Inc.
114,263‌
980‌
Astronics
Corp.
(a)
53,155‌
1,980‌
Bloom
Energy
Corp.,
Class A
(a)
172,042‌
4,515‌
CECO
Environmental
Corp.
(a)
270,223‌
2,440‌
Construction
Partners,
Inc.,
Class A
(a)
264,862‌
825‌
Dycom
Industries,
Inc.
(a)
278,768‌
1,560‌
Herc
Holdings,
Inc.
231,473‌
1,850‌
Huron
Consulting
Group,
Inc.
(a)
319,884‌
1,744‌
JBT
Marel
Corp.
262,768‌
2,730‌
Karman
Holdings,
Inc.
(a)
199,754‌
5,770‌
Knight-Swift
Transportation
Holdings,
Inc.
301,656‌
2,520‌
Kratos
Defense
&
Security
Solutions,
Inc.
(a)
191,293‌
810‌
MasTec,
Inc.
(a)
176,070‌
5,270‌
Mercury
Systems,
Inc.
(a)
384,763‌
2,700‌
Nextpower,
Inc.,
Class A
(a)
235,197‌
5,650‌
Planet
Labs
PBC
(a)
111,418‌
545‌
RBC
Bearings,
Inc.
(a)
244,394‌
305‌
Sterling
Infrastructure,
Inc.
(a)
93,400‌
1,355‌
VSE
Corp.
234,103‌
3,545‌
Xometry,
Inc.,
Class A
(a)
210,821‌
4,534,482‌
Information
Technology
-
22.9%
1,115‌
Advanced
Energy
Industries,
Inc.
233,447‌
4,785‌
Braze,
Inc.,
Class A
(a)
164,078‌
3,925‌
Calix,
Inc.
(a)
207,750‌
1,185‌
Camtek,
Ltd./Israel
(a)
126,019‌
2,225‌
Clear
Secure,
Inc.,
Class A
78,053‌
1,220‌
Credo
Technology
Group
Holding,
Ltd.
(a)
175,546‌
4,125‌
DigitalOcean
Holdings,
Inc.
(a)
198,495‌
3,395‌
D-Wave
Quantum,
Inc.
(a)
88,779‌
Lisanti
Small
Cap
Growth
Fund
SCHEDULE
OF
INVESTMENTS
December
31,
2025
2
See
Notes
to
Financial
Statements.
The
following
is
a
summary
of
the
inputs
used
to
value
the
Fund's investments
as
of
December
31,
2025.
The
inputs
or
methodology
used
for
valuing
securities
are
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
For
more
information
on
valuation
inputs,
and
their
aggregation
into
the
levels
used
in
the
table
below,
please
refer
to
the
Security
Valuation
section
in
Note
2
of
the
accompanying
Notes
to
Financial
Statements.
The
Level
1
value
displayed
in
this
table
is
Common
Stock
and
a
Money
Market
Fund.
Refer
to
this
Schedule
of
Investments
for
a
further
breakout
of
each
security
by
industry.
Shares
Security
Description
Value
Information
Technology
-
22.9%
(continued)
9,195‌
Evolv
Technologies
Holdings,
Inc.
(a)
$
65,836‌
1,125‌
Impinj,
Inc.
(a)
195,761‌
5,965‌
JFrog,
Ltd.
(a)
372,574‌
9,585‌
Klaviyo,
Inc.,
Class A
(a)
311,225‌
540‌
Lumentum
Holdings,
Inc.
(a)
199,039‌
8,645‌
Mirion
Technologies,
Inc.
(a)
202,466‌
5,705‌
nLight,
Inc.
(a)
213,994‌
5,760‌
PDF
Solutions,
Inc.
(a)
164,333‌
3,840‌
Pegasystems,
Inc.
229,325‌
1,690‌
Semtech
Corp.
(a)
124,536‌
935‌
SiTime
Corp.
(a)
330,233‌
2,835‌
TTM
Technologies,
Inc.
(a)
195,615‌
6,055‌
Zeta
Global
Holdings
Corp.,
Class A
(a)
123,219‌
4,000,323‌
Materials
-
3.2%
1,165‌
Carpenter
Technology
Corp.
366,788‌
3,915‌
MP
Materials
Corp.
(a)
197,786‌
564,574‌
Total
Common
Stock
(Cost
$15,273,498)
17,074,818‌
Shares
Security
Description
Value
Money
Market
Fund
-
2.0%
‌
350,727‌
First
American
Treasury
Obligations
Fund,
Class X,
3.66%
(b)
(Cost
$350,727)
350,727‌
Investments,
at
value
-
99.8%
(Cost
$15,624,225)
$
17,425,545‌
Other
Assets
&
Liabilities,
Net
-
0.2%
31,236‌
Net
Assets
-
100.0%
$
17,456,781‌
(a)
Non-income
producing
security.
(b)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
December
31,
2025.
Valuation
Inputs
Investments
in
Securities
Level
1
-
Quoted
Prices
$
17,425,545‌
Level
2
-
Other
Significant
Observable
Inputs
-‌
Level
3
-
Significant
Unobservable
Inputs
-‌
Total
$
17,425,545‌
Lisanti
Small
Cap
Growth
Fund
STATEMENT
OF
ASSETS
AND
LIABILITIES
December
31,
2025
3
See
Notes
to
Financial
Statements.
ASSETS
Investments,
at
value
(Cost
$15,624,225)
$
17,425,545‌
Receivables:
Fund
shares
sold
101‌
Investment
securities
sold
82,084‌
Dividends
2,203‌
Prepaid
expenses
14,785‌
Total
Assets
17,524,718‌
LIABILITIES
Payables:
Fund
shares
redeemed
1,921‌
Accrued
Liabilities:
Investment
adviser
fees
19,806‌
Fund
services
fees
8,105‌
Other
expenses
38,105‌
Total
Liabilities
67,937‌
NET
ASSETS
$
17,456,781‌
COMPONENTS
OF
NET
ASSETS
Paid-in
capital
$
36,869,337‌
Accumulated
loss
(19,412,556‌)
NET
ASSETS
$
17,456,781‌
SHARES
OF
BENEFICIAL
INTEREST
AT
NO
PAR
VALUE
(UNLIMITED
SHARES
AUTHORIZED)
764,559‌
NET
ASSET
VALUE,
OFFERING
AND
REDEMPTION
PRICE
PER
SHARE
$
22.83‌
Lisanti
Small
Cap
Growth
Fund
STATEMENT
OF
OPERATIONS
YEAR
ENDED
DECEMBER
31,
2025
4
See
Notes
to
Financial
Statements.
INVESTMENT
INCOME
Dividend
income
$
49,271‌
Total
Investment
Income
49,271‌
EXPENSES
Investment
adviser
fees
179,296‌
Fund
services
fees
205,638‌
Shareholder
service
fees
37,747‌
Custodian
fees
5,987‌
Registration
fees
23,947‌
Professional
fees
54,891‌
Trustees'
fees
and
expenses
10,741‌
Other
expenses
58,459‌
Total
Expenses
576,706‌
Fees
waived
(248,574‌)
Net
Expenses
328,132‌
NET
INVESTMENT
LOSS
(278,861‌)
NET
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
Net
realized
gain
on
investments
2,933,800‌
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(2,571,852‌)
NET
REALIZED
AND
UNREALIZED
GAIN
361,948‌
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
$
83,087‌
Lisanti
Small
Cap
Growth
Fund
STATEMENTS
OF
CHANGES
IN
NET
ASSETS
5
See
Notes
to
Financial
Statements.
For
the
Years
Ended
December
31,
2025
2024
OPERATIONS
Net
investment
loss
$
(278,861‌)
$
(279,609‌)
Net
realized
gain
2,933,800‌
6,783,097‌
Net
change
in
unrealized
appreciation
(depreciation)
(2,571,852‌)
118,175‌
Increase
in
Net
Assets
Resulting
from
Operations
83,087‌
6,621,663‌
DISTRIBUTIONS
TO
SHAREHOLDERS
Total
Distributions
Paid
(278,350‌)
-‌
CAPITAL
SHARE
TRANSACTIONS
Sale
of
shares
3,604,435‌
5,587,412‌
Reinvestment
of
distributions
196,822‌
-‌
Redemption
of
shares
(13,790,642‌)
(15,399,659‌)
Decrease
in
Net
Assets
from
Capital
Share
Transactions
(9,989,385‌)
(9,812,247‌)
Decrease
in
Net
Assets
(10,184,648‌)
(3,190,584‌)
NET
ASSETS
Beginning
of
Year
27,641,429‌
30,832,013‌
End
of
Year
$
17,456,781‌
$
27,641,429‌
SHARE
TRANSACTIONS
Sale
of
shares
162,142‌
288,225‌
Reinvestment
of
distributions
11,430‌
-‌
Redemption
of
shares
(718,160‌)
(843,774‌)
Decrease
in
Shares
(544,588‌)
(555,549‌)
Lisanti
Small
Cap
Growth
Fund
FINANCIAL
HIGHLIGHTS
6
See
Notes
to
Financial
Statements.
These
financial
highlights
reflect
selected
data
for
a
share
outstanding
throughout
each
year
.
For
the
Years
Ended
December
31,
2025
2024
2023
2022
2021
NET
ASSET
VALUE,
Beginning
of
Year
$
21.11‌
$
16.53‌
$
15.84‌
$
25.95‌
$
30.96‌
INVESTMENT
OPERATIONS
Net
investment
loss
(a)
(0.30‌)
(0.20‌)
(0.17‌)
(0.17‌)
(0.38‌)
Net
realized
and
unrealized
gain
(loss)
2.28‌
4.78‌
0.86‌
(9.51‌)
3.32‌
Total
from
Investment
Operations
1.98‌
4.58‌
0.69‌
(9.68‌)
2.94‌
DISTRIBUTIONS
TO
SHAREHOLDERS
FROM
Net
investment
income
(0.26‌)
-‌
-‌
-‌
-‌
Net
realized
gain
-‌
-‌
-‌
(0.43‌)
(7.95‌)
Total
Distributions
to
Shareholders
(0.26‌)
-‌
-‌
(0.43‌)
(7.95‌)
REDEMPTION
FEES(a)
-‌
-‌
-‌
0.00‌(b)
0.00‌(b)
NET
ASSET
VALUE,
End
of
Year
$
22.83‌
$
21.11‌
$
16.53‌
$
15.84‌
$
25.95‌
TOTAL
RETURN
9.78‌%
27.71‌%
4.36‌%
(37.37‌)%
10.69‌%
RATIOS/SUPPLEMENTARY
DATA
Net
Assets
at
End
of
Year
(000s
omitted)
$
17,457‌
$
27,641‌
$
30,832‌
$
60,474‌
$
105,111‌
Ratios
to
Average
Net
Assets:
Net
investment
loss
(1.48‌)%
(1.03‌)%
(1.05‌)%
(0.91‌)%
(1.14‌)%
Net
expenses
1.74‌%
1.35‌%
1.35‌%
1.35‌%
1.35‌%
Gross
expenses
(c)
3.06‌%
2.48‌%
1.88‌%
1.67‌%
1.61‌%
PORTFOLIO
TURNOVER
RATE
358‌%
223‌%
475‌%
347‌%
264‌%
footertext
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.01
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Expense
waivers
and/or
reimbursements
would
decrease
the
total
return
had
such
reductions
not
occurred.
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
7
Note
1.
Organization
The
Lisanti
Small
Cap
Growth
Fund
(the
"Fund")
is
a
diversified
portfolio
of
Forum
Funds
(the
"Trust").
The
Trust
is
a
Delaware
statutory
trust
that
is
registered
as
an
open-end,
management
investment
company
under
the
Investment
Company
Act
of
1940,
as
amended
(the
"Act").
Under
its
Trust
Instrument,
the
Trust
is
authorized
to
issue
an
unlimited
number
of
the
Fund's
shares
of
beneficial
interest
without
par
value.
The
Fund
commenced
operations
on
February
27,
2004.
The
Fund
seeks
maximum
capital
appreciation.
The
Fund
included
herein
is
deemed
to
be
an
individual
reporting
segment
and
is
not
part
of
a
consolidated
reporting
entity.
The
objective
and
strategy
of
the
Fund
is
used
by
the
adviser,
as
defined
in
Note
3,
to
make
investment
decisions,
and
the
results
of
the
operations,
as
shown
on
the
Statement
of
Operations
and
the
financial
highlights
for
the
Fund
is
the
information
utilized
for
the
day-to-day
management
of
the
Fund.
The
Fund
is
party
to
the
expense
agreements
as
disclosed
in
the
Notes
to
the
Financial
Statements
and
there
are
no
resources
allocated
to
the
Fund
based
on
performance
measurements.
Due
to
the
significance
of
oversight
and
their
role,
the
management
committee
of
Lisanti
Capital
Growth,
LLC,
the
Fund's
adviser,
is
deemed
to
be
the
Chief
Operating
Decision
Maker.
Note
2.
Summary
of
Significant
Accounting
Policies
The
Fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
Accounting
Standards
Codification
Topic
946,
"Financial
Services
-
Investment
Companies."
These
financial
statements
are
prepared
in
accordance
with
accounting
principles
generally
accepted
in
the
United
States
of
America
("GAAP"),
which
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities,
the
disclosure
of
contingent
liabilities
at
the
date
of
the
financial
statements,
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
fiscal
year.
Actual
amounts
could
differ
from
those
estimates.
The
following
summarizes
the
significant
accounting
policies
of
the
Fund:
Security
Valuation
-
Securities
are
recorded
at
fair
value
using
last
quoted
trade
or
official
closing
price
from
the
principal
exchange
where
the
security
is
traded,
as
provided
by
independent
pricing
services
on
each
Fund
business
day.
In
the
absence
of
a
last
trade,
securities
are
valued
at
the
mean
of
the
last
bid
and
ask
price
provided
by
the
pricing
service.
Shares
of
non-exchange
traded
open-end
mutual
funds
are
valued
at
net
asset
value
per
share
("NAV").
Short-term
investments
that
mature
in
sixty
days
or
less
may
be
recorded
at
amortized
cost,
which
approximates
fair
value.
Pursuant
to
Rule
2a-5
under
the
Investment
Company
Act,
the
Trust's
Board
of
Trustees
(the
"Board")
has
designated
the
Adviser
as
the
Fund's
valuation
designee
to
perform
any
fair
value
determinations
for
securities
and
other
assets
held
by
the
Fund.
The
Adviser
is
subject
to
the
oversight
of
the
Board
and
certain
reporting
and
other
requirements
intended
to
provide
the
Board
the
information
needed
to
oversee
the
Adviser's
fair
value
determinations.
The
Adviser
is
responsible
for
determining
the
fair
value
of
investments
for
which
market
quotations
are
not
readily
available
in
accordance
with
policies
and
procedures
that
have
been
approved
by
the
Board.
Under
these
procedures,
the
Adviser
convenes
on
a
regular
and
ad
hoc
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
8
basis
to
review
such
investments
and
considers
a
number
of
factors,
including
valuation
methodologies
and
significant
unobservable
inputs,
when
arriving
at
fair
value.
The
Board
has
approved
the
Adviser's
fair
valuation
procedures
as
a
part
of
the
Fund's
compliance
program
and
will
review
any
changes
made
to
the
procedures.
The
Adviser
provides
fair
valuation
inputs.
In
determining
fair
valuations,
inputs
may
include
market-based
analytics
that
may
consider
related
or
comparable
assets
or
liabilities,
recent
transactions,
market
multiples,
book
values
and
other
relevant
investment
information.
Adviser
inputs
may
include
an
income-based
approach
in
which
the
anticipated
future
cash
flows
of
the
investment
are
discounted
in
determining
fair
value.
Discounts
may
also
be
applied
based
on
the
nature
or
duration
of
any
restrictions
on
the
disposition
of
the
investments.
The
Adviser
performs
regular
reviews
of
valuation
methodologies,
key
inputs
and
assumptions,
disposition
analysis
and
market
activity.
Fair
valuation
is
based
on
subjective
factors
and,
as
a
result,
the
fair
value
of
an
investment
may
differ
from
the
security's
market
price
and
may
not
be
the
price
at
which
the
asset
may
be
sold.
Fair
valuation
could
result
in
a
different
NAV
than
a
NAV
determined
by
using
market
quotes.
GAAP
has
a
three-tier
fair
value
hierarchy.
The
basis
of
the
tiers
is
dependent
upon
the
level
of
various
"inputs"
used
to
determine
the
value
of
the
Fund's
investments.
These
inputs
are
summarized
in
the
three
broad
levels
listed
below:
Level
1
-
Quoted
prices
in
active
markets
for
identical
assets
and
liabilities.
Level
2
-
Prices
determined
using
significant
other
observable
inputs
(including
quoted
prices
for
similar
securities,
interest
rates,
prepayment
speeds,
credit
risk,
etc.).
Short-term
securities
are
valued
at
amortized
cost,
which
approximates
market
value,
and
are
categorized
as
Level
2
in
the
hierarchy.
Municipal
securities,
long-term
U.S.
government
obligations
and
corporate
debt
securities
are
valued
in
accordance
with
the
evaluated
price
supplied
by
a
pricing
service
and
generally
categorized
as
Level
2
in
the
hierarchy.
Other
securities
that
are
categorized
as
Level
2
in
the
hierarchy
include,
but
are
not
limited
to,
warrants
that
do
not
trade
on
an
exchange,
securities
valued
at
the
mean
between
the
last
reported
bid
and
ask
quotation
and
international
equity
securities
valued
by
an
independent
third
party
with
adjustments
for
changes
in
value
between
the
time
that
the
securities'
respective
local
market
closes
and
the
close
of
the
U.S.
market.
Level
3
-
Significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
investments).
The
aggregate
value
by
input
level,
as
of
December
31,
2025,
for
the
Fund's
investments
is
included
in
the
Fund's
Schedule
of
Investments.
Security
Transactions,
Investment
Income
and
Realized
Gain
and
Loss
-
Investment
transactions
are
accounted
for
on
the
trade
date.
Dividend
income
is
recorded
on
the
ex-dividend
date.
Foreign
dividend
income
is
recorded
on
the
ex-dividend
date
or
as
soon
as
possible
after
determining
the
existence
of
a
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
9
dividend
declaration
after
exercising
reasonable
due
diligence.
Income
and
capital
gains
on
some
foreign
securities
may
be
subject
to
foreign
withholding
taxes,
which
are
accrued
as
applicable.
Interest
income
is
recorded
on
an
accrual
basis.
Premium
is
amortized
to
the
next
call
date
above
par,
and
discount
is
accreted
to
maturity
using
the
effective
interest
method
and
included
in
interest
income.
Identified
cost
of
investments
sold
is
used
to
determine
the
gain
and
loss
for
both
financial
statement
and
federal
income
tax
purposes.
Distributions
to
Shareholders
-
Distributions
to
shareholders
of
net
investment
income,
if
any,
are
declared
and
paid
quarterly.
Distributions
to
shareholders
of
net
capital
gains
and
foreign
currency
gains,
if
any,
are
declared
and
paid
at
least
annually.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Distributions
are
based
on
amounts
calculated
in
accordance
with
applicable
federal
income
tax
regulations,
which
may
differ
from
GAAP.
These
differences
are
due
primarily
to
differing
treatments
of
income
and
gain
on
various
investment
securities
held
by
the
Fund,
timing
differences
and
differing
characterizations
of
distributions
made
by
the
Fund.
Federal
Taxes
-
The
Fund
intends
to
continue
to
qualify
each
year
as
a
regulated
investment
company
under
Subchapter
M
of
Chapter
1,
Subtitle
A,
of
the
Internal
Revenue
Code
of
1986,
as
amended
("Code"),
and
to
distribute
all
of
its
taxable
income
to
shareholders.
In
addition,
by
distributing
in
each
calendar
year
substantially
all
of
its
net
investment
income
and
capital
gains,
if
any,
the
Fund
will
not
be
subject
to
a
federal
excise
tax.
Therefore,
no
federal
income
or
excise
tax
provision
is
required.
The
Fund
recognizes
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statement
of
Operations.
During
the
year,
the
Fund
did
not
incur
any
interest
or
penalties.
The
Fund
files
a
U.S.
federal
income
and
excise
tax
return
as
required.
The
Fund's
federal
income
tax
returns
are
subject
to
examination
by
the
Internal
Revenue
Service
for
a
period
of
three
years
after
they
are
filed.
As
of
December
31,
2025,
there
are
no
uncertain
tax
positions
that
would
require
financial
statement
recognition,
de-recognition
or
disclosure.
Income
and
Expense
Allocation
-
The
Trust
accounts
separately
for
the
assets,
liabilities
and
operations
of
each
of
its
investment
portfolios.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
investment
portfolios
in
an
equitable
manner.
Commitments
and
Contingencies
-
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
provide
general
indemnifications
by
the
Fund
to
the
counterparty
to
the
contract.
The
Fund's
maximum
exposure
under
these
arrangements
is
dependent
on
future
claims
that
may
be
made
against
the
Fund
and,
therefore,
cannot
be
estimated;
however,
based
on
experience,
the
risk
of
loss
from
such
claims
is
considered
remote.
The
Fund
has
determined
that
none
of
these
arrangements
requires
disclosure
on
the
Fund's
Statement
of
Assets
and
Liabilities.
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
10
Note
3.
Fees
and
Expenses
Investment
Adviser
-
Lisanti
Capital
Growth,
LLC
(the
"Adviser")
is
the
investment
adviser
to
the
Fund.
Pursuant
to
an
investment
advisory
agreement,
the
Adviser
receives
an
advisory
fee,
payable
monthly,
from
the
Fund
at
an
annual
rate
of
0.95%
of
the
Fund's
average
daily
net
assets.
Shareholder
Service
Plan
-
The
Trust
has
adopted
a
shareholder
service
plan
for
the
Fund
under
which
the
Fund
may
reimburse
the
Fund's
administrator
for
amounts
paid
by
the
administrator
for
providing
shareholder
service
activities
that
are
not
otherwise
provided
by
the
transfer
agent.
The
Fund's
administrator
may
make
such
payments
to
various
financial
institutions,
including
the
Adviser,
that
provide
shareholder
servicing
to
their
customers
invested
in
the
Fund
in
amounts
of
up
to
0.25%
annually
of
the
average
daily
net
assets
of
the
Fund.
Distribution
-
Foreside
Fund
Services,
LLC,
a
wholly
owned
subsidiary
of
Foreside
Financial
Group,
LLC
(d/b/a
ACA
Group)
(the
"Distributor"),
acts
as
the
agent
of
the
Trust
in
connection
with
the
continuous
offering
of
shares
of
the
Fund.
The
Fund
does
not
have
a
distribution
(12b-1)
plan;
accordingly,
the
Distributor
does
not
receive
compensation
from
the
Fund
for
its
distribution
services.
The
Adviser
compensates
the
Distributor
directly
for
its
services.
The
Distributor
is
not
affiliated
with
the
Adviser
or
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings
LLC
(d/b/a
Apex
Fund
Services)
("Apex")
or
their
affiliates.
Other
Service
Providers
-
Apex
provides
fund
accounting,
fund
administration,
compliance
and
transfer
agency
services
to
the
Fund.
The
fees
related
to
these
services
are
included
in
Fund
services
and
administration
fees
within
the
Statement
of
Operations.
Apex
also
provides
certain
shareholder
report
production
and
EDGAR
conversion
and
filing
services.
Pursuant
to
an
Apex
Services
Agreement,
the
Fund
pays
Apex
customary
fees
for
its
services.
Apex
provides
a
Principal
Executive
Officer,
a
Principal
Financial
Officer,
a
Chief
Compliance
Officer
and
an
Anti-Money
Laundering
Officer
to
the
Fund,
as
well
as
certain
additional
compliance
support
functions.
Trustees
and
Officers
-
Each
Independent
Trustee's
annual
retainer
is
$60,000
($70,000
for
the
Chairman).
The
Audit
Committee
Chairman
receives
an
additional
$5,000
annually.
The
Trustees
and
the
Chairman
may
receive
additional
fees
for
special
Board
meetings.
Each
Trustee
is
also
reimbursed
for
all
reasonable
out-
of-pocket
expenses
incurred
in
connection
with
his
or
her
duties
as
a
Trustee,
including
travel
and
related
expenses
incurred
in
attending
Board
meetings.
The
amount
of
Trustees'
fees
attributable
to
the
Fund
is
disclosed
in
the
Statement
of
Operations.
Certain
officers
of
the
Trust
are
also
officers
or
employees
of
the
above
named
service
providers,
and
during
their
terms
of
office
received
no
compensation
from
the
Fund.
Note
4.
Fees
Waived
The
Adviser
had
contractually
agreed
to
waive
its
fee
and/or
reimburse
expenses
to
limit
total
annual
fund
operating
expenses
(excluding
all
taxes,
interest,
portfolio
transaction
expenses,
proxy
expenses,
and
extraordinary
expenses)
to
1.35%
through
April
30,
2025
("Expense
Cap").
Effective
May
1,
2025,
the
Expense
Cap
is
no
longer
in
effect.
However,
effective
May
1,
2025,
the
Adviser
voluntarily
agreed
to
waive
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
11
its
fee
and/or
reimburse
expenses
to
limit
total
annual
fund
operating
expenses
to
1.99%
(subject
to
certain
exclusions).
This
voluntary
expense
limitation
will
continue
on
a
voluntary
basis
at
the
Adviser's
discretion,
subject
to
consultation
with
the
Board.
Other
Fund
service
providers
have
agreed
to
waive
a
portion
of
their
fees
and
such
waivers
may
be
changed
or
eliminated
with
the
approval
of
the
Board.
For
the
year
ended
December
31,
2025
,
fees
waived
were
as
follows:
The
Adviser
may
be
reimbursed
by
the
Fund
for
fees
waived
and
expenses
reimbursed
by
the
Adviser
if
such
payment
is
made
within
three
years
of
the
fee
waiver
or
expense
reimbursement,
and
does
not
cause
the
Total
Annual
Fund
Operating
Expenses
After
Fee
Waiver
and/or
Expense
Reimbursement
to
exceed
the
lesser
of
(i)
the
then-current
expense
cap,
or
(ii)
the
expense
cap
in
place
at
the
time
the
fees/expenses
were
waived/reimbursed.
As
of
December
31,
2025,
$510,641
is
subject
to
recapture
by
the
Adviser.
Amounts
waived
pursuant
to
the
voluntary
expense
limitation
arrangement
are
not
subject
to
recoupment.
Other
waivers
are
not
eligible
for
recoupment.
Note
5.
Security
Transactions
The
cost
of
purchases
and
proceeds
from
sales
of
investment
securities
(including
maturities),
other
than
short-term
investments
during
the
year
ended
December
31,
2025,
totaled
$67,166,836
and
$77,645,723,
respectively.
Note
6.
Sector
Concentration
Risk
Sector
concentration
risk
is
the
possibility
that
securities
within
the
same
sector
will
decline
in
price
due
to
sector-specific
market
or
economic
developments.
If
the
Fund
invests
more
heavily
in
a
particular
sector,
the
value
of
its
shares
may
be
especially
sensitive
to
factors
and
economic
risks
that
specifically
affect
that
sector.
As
a
result,
the
Fund's
share
price
may
fluctuate
more
widely
than
the
value
of
shares
of
a
mutual
fund
that
invests
in
a
broader
range
of
sectors.
Additionally,
some
sectors
could
be
subject
to
greater
government
regulation
than
other
sectors.
Therefore,
changes
in
regulatory
policies
for
those
sectors
may
have
a
material
effect
on
the
value
of
securities
issued
by
companies
in
those
sectors.
Note
7.
Federal
Income
Tax
As
of
December
31,
2025,
the
cost
of
investments
for
federal
income
tax
purposes
is
$15,947,190 and
the
components
of
net
unrealized appreciation were
as
follows:
Investment
Adviser
Fees
Waived
Other
Waivers
Total
Fees
Waived
and
Expenses
Reimbursed
$
137,127‌
$
111,447‌
$
248,574‌
Gross
Unrealized
Appreciation
$
1,971,077‌
Gross
Unrealized
Depreciation
(492,722‌)
Net
Unrealized
Appreciation
$
1,478,355‌
Lisanti
Small
Cap
Growth
Fund
NOTES
TO
FINANCIAL
STATEMENTS
December
31,
2025
12
Distributions
paid
during
the
fiscal
years
ended
as
noted
were
characterized
for
tax
purposes
as
follows:
As
of
December
31,
2025,
distributable
earnings
on
a
tax
basis
were
as
follows:
The
difference
between
components
of
distributable
earnings
on
a
tax
basis
and
the
amounts
reflected
in
the
Statement
of
Assets
and
Liabilities
are
primarily
due
to
wash
sales.
For
the
year
ended
December
31,
2025,
the
Fund
had
$20,890,911
in
short
term
capital
loss
carry
forwards
that
have
no
expiration
date.
On
the
Statement
of
Assets
and
Liabilities,
as
a
result
of
permanent
book
to
tax
differences,
certain
amounts
have
been
reclassified
for
the
year
ended
December
31,
2025.
The
following
reclassification
was
the
result
of
net
operating
loss
and
has
no
impact
on
the
net
assets
of
the
Fund.
Note
8.
Subsequent
Events
Subsequent
events
occurring
after
the
date
of
this
report
through
the
date
these
financial
statements
were
issued
have
been
evaluated
for
potential
impact,
and
the
Fund
has
had
no
such
events.
2025
2024
Ordinary
Income
$
278,350‌
$
-‌
Capital
and
Other
Losses
$
(20,890,911‌)
Net
Unrealized
Appreciation
1,478,355‌
Total
$
(19,412,556‌)
Accumulated
Loss
$
278,865‌
Paid-in-Capital
(278,865‌)
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
13
To
the
Shareholders
of
Lisanti
Small
Cap
Growth
Fund
and
the
Board
of
Trustees
of
Forum
Funds
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
Lisanti
Small
Cap
Growth
Fund
(the
"Fund"),
a
series
of
Forum
Funds,
as
of
December
31,
2025,
the
related
statement
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
the
financial
highlights
for
each
of
the
three
years
in
the
period
then
ended,
and
the
related
notes
(collectively
referred
to
as
the
"financial
statements").
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
December
31,
2025,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
and
the
financial
highlights
for
each
of
the
three
years
in
the
period
then
ended,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
The
Fund's
financial
highlights
for
the
years
ended
December
31,
2022,
and
prior,
were
audited
by
other
auditors
whose
report
dated
February
24,
2023,
expressed
an
unqualified
opinion
on
those
financial
highlights.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund's
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund's
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
("PCAOB")
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audits
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement
whether
due
to
error
or
fraud.
REPORT
OF
INDEPENDENT
REGISTERED
PUBLIC
ACCOUNTING
FIRM
14
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
December
31,
2025,
by
correspondence
with
the
custodian
and
broker.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
Fund's
auditor
since
2023.
COHEN
&
COMPANY,
LTD
Philadelphia,
Pennsylvania
February
18,
2026
Lisanti
Small
Cap
Growth
Fund
IMPORTANT
TAX
INFORMATION
{Unaudited}
December
31,
2025
15
Federal
Tax
Status
of
Dividends
Declared
during
the
Fiscal
Year
For
federal
income
tax
purposes,
dividends
from
short-term
capital
gains
are
classified
as
ordinary
income.
The
Fund
designates
14.84%
of
its
income
dividend
distributed
as
qualifying
for
the
corporate
dividends-
received
deduction
(DRD)
and
16.81%
for
the
qualified
dividend
rate
(QDI)
as
defined
in
Section
1(h)(11)
of
the
Code.
Lisanti
Small
Cap
Growth
Fund
OTHER
INFORMATION
(UNAUDITED)
December
31,
2025
16
Changes
in
and
Disagreements
with
Accountants
(Item
8
of
Form
N-CSR)
N/A
Proxy
Disclosure
(Item
9
of
Form
N-CSR)
N/A
Remuneration
Paid
to
Directors,
Officers,
and
Others
(Item
10
of
Form
N-CSR)
Please
see
financial
statements
in
Item
7.
Statement
Regarding
the
Basis
for
the
Board's
Approval
of
Investment
Advisory
Contract
(Item
11
of
Form
N-CSR)
Investment
Advisory
Agreement
Approval
At
the
September
23,
2025
Board
meeting,
the
Board,
including
the
Independent
Trustees,
considered
the
approval
of
the
continuance
of
the
investment
advisory
agreement
between
the
Adviser
and
the
Trust
pertaining
to
the
Fund
(the
"Advisory
Agreement").
In
preparation
for
its
deliberations,
the
Board
requested
and
reviewed
written
responses
from
the
Adviser
to
a
due
diligence
questionnaire
circulated
on
the
Board's
behalf
concerning
the
services
provided
by
the
Adviser.
The
Board
also
discussed
the
materials
with
Fund
counsel
and,
as
necessary,
with
the
Trust's
administrator.
During
its
deliberations,
the
Board
received
an
oral
presentation
from
the
Adviser
and
was
assisted
by
the
advice
of
independent
Trustee
counsel.
At
the
Meeting,
the
Board
reviewed,
among
other
matters:
(i)
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
the
Adviser,
including
information
on
the
investment
performance
of
the
Fund
and
the
Adviser;
(ii)
the
costs
of
the
services
provided
and
profitability
to
the
Adviser
of
its
relationship
with
the
Fund;
(iii)
the
advisory
fee
and
total
expense
ratio
of
the
Fund
as
compared
to
those
of
a
relevant
peer
group
of
funds;
(iv)
the
extent
to
which
economies
of
scale
may
be
realized
as
the
Fund
grows
and
whether
the
advisory
fee
enables
the
Fund's
investors
to
share
in
the
benefits
of
economies
of
scale;
and
(v)
other
benefits
received
by
the
Adviser
from
its
relationship
with
the
Fund.
The
Board
recognized
that
the
evaluation
process
with
respect
to
the
Adviser
was
an
ongoing
one
and,
in
this
regard,
the
Board
considered
information
provided
by
the
Adviser
at
regularly
scheduled
meetings
during
the
past
year.
Nature,
Extent
and
Quality
of
Services
Based
on
written
materials
received,
a
presentation
from
the
principal
of
the
Adviser
and
a
discussion
with
the
Adviser
about
the
Adviser's
personnel,
operations
and
financial
condition,
the
Board
considered
the
quality
of
services
provided
by
the
Adviser
under
the
Advisory
Agreement.
In
this
regard,
the
Board
considered
information
regarding
the
experience,
qualifications
and
professional
background
of
the
portfolio
manager
and
other
personnel
at
the
Adviser
providing
services
to
the
Fund,
as
well
as
the
investment
Lisanti
Small
Cap
Growth
Fund
OTHER
INFORMATION
(UNAUDITED)
December
31,
2025
17
philosophy
and
decision-making
process
of
the
Adviser
and
the
capability
and
integrity
of
the
Adviser's
senior
management
and
staff.
The
Board
considered
also
the
adequacy
of
the
Adviser's
resources.
The
Board
noted
the
Adviser's
representations
that
the
firm
is
in
stable
financial
condition
and
has
the
operational
capability
and
the
necessary
staffing
and
experience
to
continue
providing
high-quality
investment
advisory
services
to
the
Fund.
Based
on
the
presentation
and
the
materials
provided
by
the
Adviser
in
connection
with
the
Board's
consideration
of
the
renewal
of
the
Advisory
Agreement,
among
other
relevant
factors,
the
Board
concluded
that,
overall,
it
was
satisfied
with
the
nature,
extent
and
quality
of
services
to
be
provided
to
the
Fund
under
the
Advisory
Agreement.
Performance
In
connection
with
a
presentation
by
the
Adviser
regarding
its
approach
to
managing
the
Fund,
the
Board
considered
the
performance
of
the
Fund
compared
to
relevant
benchmark
indices
and
compared
to
an
independent
peer
group
of
funds
identified
by
Strategic
Insight,
Inc.
("Strategic
Insight")
as
having
characteristics
similar
to
the
Fund
("Peer
Group").
The
Board
observed
that
the
Fund
underperformed
each
of
the
Russell
2000
Index
and
Russell
2000
Growth
Index
for
the
one-,
three-,
and
five-year
periods
ended
June
30,
2025,
and
outperformed
both
benchmark
indices
for
the
10-year
period
ended
June
30,
2025.
The
Board
also
observed
that
the
Fund
outperformed
the
Russell
2000
Index
for
the
period
since
the
Fund's
inception
on
February
27,
2004,
and
was
performing
in
line
with
the
Russell
2000
Growth
Index
over
the
same
period.
The
Board
further
observed
that,
based
on
the
information
provided
by
Strategic
Insight,
the
Fund
underperformed
the
average
of
the
Strategic
Insight
peer
group
for
the
one-,
three-,
five-,
and
10-year
periods
ended
June
30,
2025.
The
Board
noted
the
Adviser's
representation
that
the
Fund's
relative
underperformance
over
the
short
term
was
attributable,
in
part,
to
the
Fund's
focus
on
higher
growth,
higher
valuation
stocks,
which
were
more
negatively
impacted
during
the
market
correction
that
occurred
from
late
November
2024
through
April
9,
2025.
The
Board
noted
the
Adviser's
representation
that
the
Fund's
relative
underperformance
over
the
three-
and
five-year
periods
was
primarily
a
function
of
the
significant
valuation
compression
that
occurred
in
2022,
as
the
Fund
generally
focuses
on
companies
that
have
growth
rates
on
the
higher
end
of
the
Russell
2000
Index
and
Russell
2000
Growth
Index,
and
thus
would
be
impacted
more
by
the
Federal
Reserve's
aggressive
rate
hikes,
as
well
as
the
underperformance
of
technology
and
healthcare
companies
in
the
Fund's
portfolio
in
2023.
The
Board
also
noted
the
Adviser's
representation
that,
although
the
Strategic
Insight
peer
group
includes
an
array
of
funds
that
are
classified
as
small
cap
growth
funds,
most
employ
investment
strategies
that
differ
from
the
investment
strategy
that
the
Fund
employs
because
the
Fund
tends
to
have
a
slightly
lower
market
capitalization
range
and
slightly
higher
growth
rate
profile
than
those
of
the
peers,
which
could
result
in
the
type
of
performance
disparity
over
longer
time
periods
identified
in
the
Strategic
Insight
report.
Finally,
the
Board
noted
the
Adviser's
representation
that
the
Fund's
consistent
focus
on
higher
growth
and
higher
valuation
stocks
ultimately
contributed
to
outperformance
during
the
second
quarter
of
2025
and
that
the
Fund
outperformed
its
benchmark
indices
during
the
quarter
ended
Lisanti
Small
Cap
Growth
Fund
OTHER
INFORMATION
(UNAUDITED)
December
31,
2025
18
June
30,
2025.
Based
on
the
foregoing
and
other
applicable
considerations,
the
Board
determined
that
the
Fund
and
its
shareholders
could
benefit
from
the
Adviser's
continued
management
of
the
Fund.
Compensation
The
Board
evaluated
the
Adviser's
compensation
for
providing
advisory
services
to
the
Fund
and
analyzed
comparative
information
on
the
net
advisory
fee
rate
and
total
expense
ratio
of
the
Fund
compared
to
its
Peer
Group.
The
Board
observed
that
the
Fund's
net
expense
ratio
was
higher
than
the
median
of
the
Peer
Group,
but
only
by
two
basis
points,
and
that
the
Fund's
net
advisory
fee
rate
was
less
than
the
median
of
the
Peer
Group.
In
addition,
the
Board
noted
that
the
Adviser
had
voluntarily
agreed
to
waive
its
advisory
fee
and/or
reimburse
Fund
expenses
to
the
extent
necessary
to
keep
the
net
expenses
of
the
Fund
(subject
to
certain
exceptions)
at
or
below
1.99%.
Based
on
the
foregoing
and
other
applicable
considerations,
the
Board
concluded
that
the
advisory
fee
rate
charged
to
the
Fund
was
reasonable.
Cost
of
Services
and
Profitability
The
Board
evaluated
information
provided
by
the
Adviser
regarding
the
costs
of
services
and
its
profitability
with
respect
to
the
Fund.
In
this
regard,
the
Board
considered
the
Adviser's
resources
devoted
to
the
Fund,
as
well
as
the
information
provided
by
the
Adviser
regarding
the
costs
and
profitability
of
its
Fund
activities.
The
Board
noted
the
Adviser's
representation
that,
although
the
Adviser
did
not
maintain
separately
identifiable
profit
and
loss
information
for
the
Fund
relative
to
its
other
advisory
businesses,
the
Adviser
believed
that
its
profit
margin
from
the
Fund
was
reasonable
considering
the
services
provided
and
that
the
Fund
required
significantly
more
attention
and
resources
than
other
accounts
managed
by
the
Adviser
due
to
the
regulatory
requirements
associated
with
investment
companies
registered
under
the
Investment
Company
Act
of
1940.
The
Board
also
noted
the
Adviser's
representation
that
the
Adviser
was
subsidizing
the
Fund's
operations
by
forgoing
a
portion
of
its
advisory
fee
and
reimbursing
Fund
expenses
in
accordance
with
the
Adviser's
voluntary
expense
cap
arrangements.
Based
on
these
and
other
applicable
considerations,
including
financial
statements
from
the
Adviser
indicating
its
profitability
and
expenses
from
overall
operations,
the
Board
concluded
that
the
Adviser's
costs
of
services
and
profits
attributable
to
management
of
the
Fund
were
reasonable.
Economies
of
Scale
The
Board
evaluated
whether
the
Fund
would
benefit
from
any
economies
of
scale.
In
this
regard,
the
Board
considered
the
Fund's
fee
structure,
asset
size,
and
net
expense
ratio.
The
Board
also
considered
the
Adviser's
representation
that
the
Fund
could
potentially
benefit
from
economies
of
scale
if
its
assets
were
to
increase
but
that,
in
light
of
the
Fund's
current
asset
level
and
the
research-intensive
nature
of
the
Fund's
investment
strategy,
the
Adviser
was
not
proposing
breakpoints
in
the
advisory
fee
at
this
time.
Based
on
the
foregoing
information,
and
in
light
of
the
size
of
the
Fund
and
the
recent
decline
in
the
Fund's
assets,
the
Board
concluded
that
the
information
presented
regarding
economies
of
scale
was
consistent
with
the
renewal
of
the
Advisory
Agreement
at
current
fee
levels.
Lisanti
Small
Cap
Growth
Fund
OTHER
INFORMATION
(UNAUDITED)
December
31,
2025
19
Other
Benefits
The
Board
noted
the
Adviser's
representation
that
it
would
be
receiving
a
benefit
arising
from
the
use
of
soft
dollars
in
connection
with
Fund
trades
for
the
acquisition
of
research
that
would
benefit
not
only
the
Fund,
but
potentially
other
clients
of
the
Adviser.
The
Board
concluded
that
the
other
benefits
received
were
not
a
material
factor
in
approving
the
Advisory
Agreement.
Conclusion
The
Board
did
not
identify
any
single
factor
as
being
of
paramount
importance,
and
different
Trustees
may
have
given
different
weight
to
different
factors.
The
Board
reviewed
a
memorandum
from
Fund
counsel
discussing
the
legal
standards
applicable
to
its
consideration
of
the
Advisory
Agreement.
Based
on
its
review,
including
consideration
of
each
of
the
factors
referenced
above,
the
Board
determined,
in
the
exercise
of
its
reasonable
business
judgment,
that
the
advisory
arrangement,
as
outlined
in
the
Advisory
Agreement,
was
fair
and
reasonable
in
light
of
the
services
performed
or
to
be
performed,
expenses
incurred
or
to
be
incurred
and
such
other
matters
as
the
Board
considered
relevant.
Lisanti
Small
Cap
Growth
Fund
P.O.
Box
588
Portland,
ME
04112
(800)
441-7031
www.lisantismallcap.com
Investment
Adviser
Lisanti
Capital
Growth,
LLC
777
Third
Avenue,
14th
Floor
New
York,
NY
10017
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund's
risks,
objectives,
fees
and
expenses,
experience
of
its
management
and
other
information.
228
-
ANR
-
1225
(b) Included as part of financial statements filed under Item 7(a).
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PROXY DISCLOSURES FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 10. REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES.
Included as part of financial statements filed under Item 7(a).
ITEM 11. STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT.
Included as part of other information filed under Item 7(a).
ITEM 12. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 13. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 14. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 15. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Registrant does not accept nominees to the Board of Trustees from shareholders.
ITEM 16. CONTROLS AND PROCEDURES
(a) The Registrant's Principal Executive Officer and Principal Financial Officer have concluded that the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the Reporting Period that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
ITEM 17. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 18. RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION.
Not applicable.
ITEM 19. EXHIBITS.
(a)(1) Code of Ethics (filed herewith).
(a)(2) Not applicable.
(a)(3) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
(a)(4) Not applicable.
(a)(5) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant Forum Funds
By:
/s/ Zachary Tackett
Zachary Tackett, Principal Executive Officer
Date:
February 13, 2026
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By:
/s/ Zachary Tackett
Zachary Tackett, Principal Executive Officer
Date:
February 13, 2026
By:
/s/ Karen Shaw
Karen Shaw, Principal Financial Officer
Date:
February 13, 2026
Forum Funds published this content on February 20, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 20, 2026 at 12:28 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]