Securitize drops 20% as tokenization revenue falls short of estimates

Securitize (SECZ) shares plunged 20% in after-hours trading Wednesday after the company reported second-quarter revenue that missed analyst estimates in its first earnings release since going public.

The tokenization firm, best known for managing BlackRock's BUIDL money-market fund, posted revenue of $14.4 million, down 5% from a year earlier. Analysts had forecast $20.6 million, according to data compiled by Bloomberg.

Securitize reported a net loss of $21.7 million, or $2.37 per share. The consensus had expected a loss of $0.15 per share. Adjusted EBITDA swung to a loss of $5.5 million from a gain of $1.8 million in the same quarter last year.

CEO Carlos Domingo called the quarter “softer” on the earnings call. He pointed to a stronger start to the year. First-half revenue remained 16% above the prior-year period, including a record $19.5 million in the first quarter.

Platform activity grew even as revenue slipped. Average tokenized assets under management hit a record $4.3 billion, up 16% from a year earlier. Transaction volume surged 147% to $5.3 billion. The company's fund-services unit oversaw 663 active funds and $24.3 billion in assets under administration.

Wall Street has grown increasingly excited about tokenization, the push to bring funds and equities onto blockchain rails. Securitize sits near the center of that trend. Its clients include BlackRock and KKR. The BUIDL product, 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 on infrastructure for trading tokenized securities. It has partnered with Computershare to enable tokenized shares for U.S. issuers.

Wednesday's report was Securitize's first quarterly update as a public company. It merged with a Cantor-backed special purpose acquisition company in July.

AlphaScala gives Securitize an Alpha Score of 47 out of 100, a mixed rating within the financials sector.