Securitize falls 20% after earnings miss as tokenization revenue falls short
- Securitize shares fell 20% after hours on Wednesday after the tokenization firm reported a $2.37 per-share loss versus the $0.15 loss analysts expected.
- Revenue fell 5% to $14.4 million, missing the $20.6 million consensus estimate, even as average tokenized assets under management reached a record $4.3 billion.
- Transaction volume jumped 147% to $5.3 billion, showing growing activity as Wall Street pushes to bring funds, stocks and other assets onto blockchain rails.
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.