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

Securitize's shares plummeted 20% in after-hours trading after the tokenization firm missed Wall Street's second-quarter expectations in its first earnings report following its IPO last month. The company, famous for issuing and managing BlackRock's BUIDL tokenized money-market fund, disclosed $14.4 million in revenue, a 5% decline from the previous year and below analysts' forecast of $20.6 million.

Securitize disclosed a $2.37 per-share loss, while Wall Street had anticipated a $0.15 per-share loss. The company reported a $21.7 million net loss, a stark contrast to the $1.8 million gain in the same period a year ago. Adjusted EBITDA turned into a $5.5 million loss, up from a $1.8 million gain the year before. Despite the revenue shortfall, Wall Street has shown growing enthusiasm for tokenization, the process of transferring funds, equities, and other financial assets onto blockchain platforms.

Securitize plays a pivotal role in this trend, but sustained revenue growth remains elusive. CEO Carlos Domingo described the quarter as "softer" during the earnings call, highlighting a stronger start to the year. First-half revenue still surpassed the previous year's figures by 16%, including a record $19.5 million in the first quarter.

The platform's activity continued to climb, with average tokenized assets under management reaching a record $4.3 billion, a 16% increase from the prior year. Transaction volume also surged by 147% to $5.3 billion. The company's fund-services arm managed 663 active funds and $24.3 billion in assets under administration. Securitize provides the infrastructure for asset managers to issue and manage traditional financial products as blockchain-based tokens.

Notable clients include BlackRock and KKR, placing the company at the heart of Wall Street's push to bring securities on-chain. BUIDL, launched in collaboration with BlackRock in 2024, has emerged as one of the largest tokenized Treasury and money-market products. The company is also collaborating with the New York Stock Exchange on infrastructure for trading tokenized securities and has partnered with Computershare, a leading transfer agent, to enable tokenized shares for U.S. issuers.

Securitize's first quarterly update as a publicly-traded company came after it merged with a Cantor-backed special purpose acquisition company in July.