Securitize saw tokenized assets and trading volumes reach record levels, but the growth did not translate into higher revenue in its first earnings report as a publicly traded company.
Shares of Securitize (SECZ) sank 20% in after-hours trading Wednesday after the tokenization firm reported second-quarter results that missed Wall Street forecasts.
The company generated $14.4 million in revenue during the quarter, down 5% from a year earlier and below analysts’ expectations of $20.6 million.
Securitize reported a loss of $2.37 per share, compared with the $0.15 loss analysts had anticipated. Net losses totaled $21.7 million, while adjusted EBITDA turned negative at $5.5 million, compared with a $1.8 million gain in the year-ago period.
The results come as interest in blockchain-based tokenization continues to expand across traditional finance. Asset managers and financial institutions are increasingly exploring tokenized funds, equities and other securities, with Securitize positioned as one of the leading infrastructure providers. However, the company’s latest figures show that increased tokenization activity has yet to produce consistent revenue growth.
CEO Carlos Domingo described the second quarter as “softer” while pointing to stronger results during the first half of the year. Revenue for the first six months was up 16% year over year, supported by a record $19.5 million in first-quarter revenue.
Tokenized Assets and Trading Surge
Operational activity on Securitize’s platform continued to grow despite the weaker financial performance.
Average tokenized assets under management climbed 16% from a year earlier to a record $4.3 billion. Transaction volume jumped 147% to $5.3 billion.
Its fund-services division was managing 663 active funds with a combined $24.3 billion in assets under administration.
Securitize provides the infrastructure that allows asset managers to issue and manage traditional financial products as blockchain-based tokens. Its clients include BlackRock and KKR, placing the company at the heart of the financial industry’s growing tokenization push.
BlackRock’s BUIDL, which was launched with Securitize in 2024, has become one of the biggest tokenized Treasury and money-market products.
Securitize is also collaborating with the New York Stock Exchange on infrastructure for tokenized securities trading. The company has separately teamed up with Computershare to facilitate tokenized shares for U.S. issuers.
The latest earnings report marked Securitize’s first quarterly financial update since becoming publicly traded following its July merger with a Cantor-backed special purpose acquisition company.
