Securitize (SECZ), known for issuing and managing tokenized funds, released its first quarterly report after going public on Wednesday. In the second quarter, revenue not only fell short of market expectations, but the losses were also far worse than analysts had estimated, dragging the stock price down by as much as 20% in after-hours trading at one point.
The role that Securitize (NASDAQ ticker: SECZ) is best known for in the market is helping global asset manager BlackRock issue and manage its tokenized money market fund, BUIDL. However, such a dazzling spotlight has not translated into the company’s financial performance.
According to the latest financial report, Securitize’s second-quarter revenue was $14.4 million, down 5% year over year, and much lower than analysts’ original expectations of $20.6 million. Loss per share (EPS) came in at $2.37, far worse than the market-expected loss of $0.15. Net loss for the quarter widened to $21.7 million. Meanwhile, adjusted EBITDA (profit before interest, taxes, depreciation, and amortization) swung from a profit of $1.8 million in the prior-year period to a loss of $5.5 million.
At the time the financial results were released, Securitize CEO Carlos Domingo admitted that Q2 performance was “somewhat weak,” but also emphasized that revenue for the first half of this year still grew 16% compared with the same period last year, with Q1 setting a historical high of $19.5 million.
Interestingly, despite not-so-ideal financial performance, the operational data on the Securitize platform shows explosive growth.
In Q2, Securitize’s average tokenized assets under management (AUM) hit a new high of $4.3 billion, up 16% year over year. Trading volume surged even amid the backdrop, jumping 147% to reach $5.3 billion. In addition, the company’s fund services division currently manages 663 active funds, with assets under administration (AUA) totaling $24.3 billion.
Securitize provides issuance and management services for tokenized funds tailored to asset management firms. Its client roster includes top Wall Street institutions such as BlackRock and KKR. The company’s BUIDL, launched jointly with BlackRock in 2024, is currently firmly seated as the market’s largest tokenized U.S. Treasuries and money market product.
To expand its business footprint, Securitize is also working with the New York Stock Exchange (NYSE) to jointly develop dedicated trading infrastructure for tokenized securities. At the same time, the company has partnered with market-leading transfer agent Computershare to help U.S. issuers pave a clear path for launching tokenized stocks.
The latest earnings report is the first quarterly results Securitize has delivered to the market after completing the “special purpose acquisition company (SPAC)” backdoor listing in July this year, supported behind the scenes by Cantor Fitzgerald. It now appears that to establish itself on Wall Street, this tokenization pioneer will need to show more convincing profitability.
"First earnings report after listing disappoints! Tokenized star stock Securitize plunges 20% after hours" This article was first published by (Blockcast).