Securitize falls 20% after earnings miss as tokenization revenue falls short

Securitize (SECZ) shares plunged 20% in after-hours trading Wednesday after the tokenization firm fell short of Wall Street’s second-quarter expectations in its first earnings report since going public last month.

The company, best known for issuing and managing BlackRock’s BUIDL tokenized money-market fund, reported revenue of $14.4 million, down 5% from a year earlier and missing analyst estimates of $20.6 million.

Securitize posted a $2.37 per-share loss, compared with an expected loss of just $0.15 per share. Its net loss totaled $21.7 million, while adjusted EBITDA swung to a $5.5 million loss from a $1.8 million gain a year ago.

Wall Street has grown increasingly excited about tokenization, the effort to bring funds, equities and other financial assets onto blockchain rails. Securitize sits at the center of that push, but the growing interest has yet to materialize as sustained revenue growth.

CEO Carlos Domingo called the quarter “softer” when reporting earnings on Wednesday, while pointing to a stronger start to the year. First-half revenue remained 16% higher year-over-year, including a record $19.5 million in the first quarter.

Activity on Securitize’s platform grew despite the weaker financial results. Average tokenized assets under management reached a record $4.3 billion, up 16% from a year earlier, while transaction volume surged 147% to $5.3 billion. The company’s fund-services arm oversaw 663 active funds and $24.3 billion in assets under administration.

The company provides the infrastructure for asset managers to issue and manage traditional financial products such as funds as blockchain-based tokens. Its clients include BlackRock and KKR, putting the company near the center of Wall Street’s push to bring securities on-chain. BUIDL, launched with BlackRock in 2024, has grown into one of the largest tokenized Treasury and money-market products.

It is also working with the New York Stock Exchange on infrastructure for trading tokenized securities and has partnered with market-leading transfer agent Computershare to enable tokenized shares for U.S. issuers.

Wednesday’s report was Securitize’s first quarterly update as a publicly traded company after it merged with a Cantor-backed special purpose acquisition company in July.