Key facts
- Securitize reported a $2.37 per-share loss, significantly wider than the expected $0.15 loss.
- Revenue declined 5% year-over-year to $14.4 million, falling short of the $20.6 million consensus estimate.
- Average tokenized assets under management hit a record $4.3 billion.
- Transaction volume on the platform increased by 147% to $5.3 billion.
- The company's stock fell 20% in after-hours trading following the earnings release.
Securitize shares experienced a 20% decline in after-hours trading following the company's first earnings report since its public listing. The tokenization firm reported a second-quarter loss of $2.37 per share, significantly missing the $0.15 loss analysts had projected. Revenue also fell short, coming in at $14.4 million, a 5% decrease from the previous year and below the consensus estimate of $20.6 million.
Despite the weaker financial results, key operational metrics showed growth. Average tokenized assets under management reached a record $4.3 billion, up 16% year-over-year. Transaction volume surged by 147% to $5.3 billion, indicating increased activity on the platform. The company's fund-services division reported overseeing 663 active funds with $24.3 billion in assets under administration.
Securitize, known for its work with clients like BlackRock on its BUIDL tokenized money-market fund, is positioned at the forefront of the growing interest in asset tokenization. However, this enthusiasm has not yet translated into consistent revenue growth, as CEO Carlos Domingo acknowledged a "softer" quarter while noting a stronger first half of the year. The company is also collaborating with the New York Stock Exchange on tokenized security trading infrastructure and with Computershare for tokenized shares.