Securitize (SECZ) shares dropped 20 percent in after-hours trading Wednesday following its second-quarter earnings release. The tokenization infrastructure provider missed Wall Street estimates for both revenue and profit in its first public quarterly report.
The company posted a $2.37 per share loss for the quarter. The loss significantly exceeded analyst projections for a $0.15 per share loss.
Securitize reported a net loss of $21.7 million in Q2. Its adjusted EBITDA swung to a $5.5 million loss, a sharp reversal from the $1.8 million gain recorded in the same period a year earlier.
Revenue for the quarter reached $14.4 million, a 5 percent decrease from a year earlier. The revenue figure also missed analyst estimates of $20.6 million.
CEO Carlos Domingo said the quarter was “softer” during an earnings call. He highlighted a stronger start to the fiscal year, with first-half revenue climbing 16 percent year over year. The first quarter alone generated a record $19.5 million in revenue.
Securitize's operational metrics showed continued growth in platform activity, despite the financial shortfalls. Average tokenized assets under management (AUM) reached a record $4.3 billion, an increase of 16 percent from a year earlier.
Transaction volume on the Securitize platform rose 147 percent to $5.3 billion during the quarter.
The company's fund-services division oversaw 663 active funds at quarter-end. Its assets under administration (AUA) for these services totaled $24.3 billion, a 20 percent decline from prior periods, pointing to a shift in the composition or value of serviced assets.
Securitize provides infrastructure for asset managers to issue and manage traditional financial products as blockchain-based tokens. It is known for its role in issuing and managing BlackRock's BUIDL tokenized money-market fund. BUIDL, launched in 2024, has grown into one of the largest tokenized Treasury and money-market products.
The company’s client portfolio extends to other major financial institutions, including KKR. Securitize also collaborates with the New York Stock Exchange to develop infrastructure for trading tokenized securities.
To expand its ecosystem, Securitize partnered with leading transfer agent Computershare. This collaboration aims to enable tokenized shares for U.S. issuers, potentially streamlining management and transfer of corporate equities on-chain.
Wednesday's report marked Securitize's first public quarterly update, following its merger with a Cantor-backed special purpose acquisition company in July. The company's shares had already experienced volatility since its SPAC debut last month, with an earlier 40 percent drop. The earnings miss adds further pressure.
