Securitize reported record growth in tokenized assets and transaction activity, but its revenue declined in the company’s first earnings release since becoming publicly traded.
Shares of Securitize (SECZ) dropped 20% in after-hours trading Wednesday after the tokenization company delivered second-quarter results that fell below analysts’ expectations.
The company reported $14.4 million in Q2 revenue, a 5% decline from the same period last year and well below the $20.6 million analysts had projected.
Securitize also posted a loss of $2.37 per share, compared with the $0.15-per-share loss expected by the market. Its net loss reached $21.7 million, while adjusted EBITDA moved to a $5.5 million loss from a $1.8 million profit a year earlier.
The disappointing results come as Wall Street’s interest in tokenization continues to grow. Financial institutions are increasingly exploring blockchain-based versions of funds, equities and other traditional assets, with Securitize playing a key role in that transition. However, the broader increase in tokenized assets has not yet translated into steady revenue growth for the company.
CEO Carlos Domingo described the quarter as “softer” during the earnings report, while noting that the business had a stronger first half overall. Revenue for the first six months was still 16% higher than a year earlier, supported by record first-quarter revenue of $19.5 million.
Platform Activity Hits New Highs
Securitize’s operating metrics continued to improve despite the revenue decline.
Average tokenized assets under management rose 16% year over year to a record $4.3 billion. Transaction volume increased 147% to $5.3 billion.
The company’s fund-services business was overseeing 663 active funds with $24.3 billion in assets under administration.
Securitize provides the technology and infrastructure that enables asset managers to issue and manage traditional financial products as blockchain-based tokens. Its customers include major institutions such as BlackRock and KKR, positioning the company as a key participant in the growing effort to bring financial assets onto blockchain networks.
BlackRock’s BUIDL fund, which Securitize launched in 2024, has become one of the largest tokenized Treasury and money-market products.
The company is also working with the New York Stock Exchange to develop infrastructure for tokenized securities trading. Separately, Securitize has partnered with Computershare to support the issuance of tokenized shares by U.S. companies.
The Wednesday earnings release was Securitize’s first quarterly report as a public company following its merger with a Cantor-backed special purpose acquisition company in July.
