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Securitize falls 20% after earnings miss as tokenization revenue falls short
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Securitize (SECZ) shares plunged 20% in after-hours trading Wednesday after the tokenization firm missed 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 the $20.6 million consensus estimate. It posted a $2.37 per-share loss versus the $0.15 loss analysts had expected, with a net loss of $21.7 million. Adjusted EBITDA swung to a $5.5 million loss from a $1.8 million gain a year ago.
The results highlight a disconnect between surging activity in tokenization and the ability of infrastructure providers to convert that interest into steady revenue. Securitize sits at the center of Wall Street’s push to bring funds, equities, and other assets onto blockchain rails, yet the growth in on-chain securities has not yet produced sustained top-line gains. The firm merged with a Cantor-backed special purpose acquisition company in July, making Wednesday’s report a closely watched debut for investors betting on the sector.
Despite the financial miss, platform activity accelerated significantly. 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. These figures suggest that tokenization adoption is expanding even as monetization lags.
CEO Carlos Domingo called the quarter “softer” when reporting earnings, while pointing to a stronger first half. First-half revenue remained 16% higher year-over-year, including a record $19.5 million in the first quarter. He emphasized that the company is building the core infrastructure for asset managers like BlackRock and KKR, and that BUIDL, launched in 2024, has grown into one of the largest tokenized Treasury and money-market products.
Looking ahead, Securitize is working with the New York Stock Exchange on infrastructure for trading tokenized securities and has partnered with transfer agent Computershare to enable tokenized shares for U.S. issuers. These partnerships could position the company to benefit from broader on-chain adoption, but Wednesday’s results underscore the challenge of turning hype into profitable operations. The coming quarters will test whether tokenization revenue can catch up with the record activity volumes now flowing through the platform.
