Securitize posts $21.7M Q2 loss as SECZ falls 21%

Securitize Corp. reported a $21.7 million net loss for the second quarter on Aug. 12, more than tripling from $6.1 million a year earlier, even as assets and transaction activity across its tokenization platform expanded. 

Revenue declined 5% to $14.4 million from $15.3 million, according to the company’s release.

The results are Securitize’s first since its July 2 New York Stock Exchange debut, but the reported quarter ended June 30 and therefore predates the public listing. The business combination with Cantor Equity Partners II closed July 1. Securitize then put its own NYSE listed common stock onchain on Solana and Avalanche on its first trading day.

Securitize loss widens despite record tokenized AUM

Average tokenized assets under management reached a record $4.3 billion, up 16% year over year. Quarter end AUM was also $4.3 billion, up 9%. Securitize said it added about $1 billion during the quarter and now has approximately $5 billion managed onchain. More than seven assets on its platform each have at least $100 million in AUM, according to the company.

Higher asset levels did not translate into higher quarterly revenue. Tokenization revenue declined 12% to $7.84 million, while asset servicing revenue increased 3% to $6.60 million. Total operating expenses climbed 56% to $24.1 million. Selling, general and administrative expenses more than doubled to $8.2 million, while compensation and benefits rose 31% to $10.5 million.

Adjusted EBITDA swung to a $5.5 million loss from a $1.8 million profit a year earlier. The GAAP loss was also affected by changes in the fair value of option, SAFE and derivative liabilities. Securitize recorded a $29.3 million loss from its option liability, partly offset by a $21.8 million gain from a derivative liability.

Transaction activity moved in the opposite direction. Aggregate transaction volume reached $5.3 billion, with the formal earnings release describing the increase as 147% year over year. CEO Carlos Domingo separately described the 147% figure on X as a quarter over quarter increase. However, Securitize reported $1.9 billion in Q1 volume, so the formal release’s year over year definition is the figure used here.

SECZ drops after hours following first public results

SECZ closed Wednesday at $7.86, up about 6.8% during regular trading, before the earnings release. The shares then fell about 22% after hours, according to Google Finance

The balance sheet entering the third quarter looks different from the one reflected at June 30 because the Cantor transaction closed one day later. CFO Francisco Flores said the combination left Securitize with “approximately $350 million in cash and no debt on our balance sheet.” He added that reaching positive adjusted EBITDA remains a near term objective, rather than guidance that profitability has already been achieved.

Securitize has also expanded its U.S. regulatory footprint since going public. As previously reported, Securitize Capital became an SEC registered investment adviser in July, adding another regulated business to its broker dealer, transfer agent and alternative trading system operations.

Tokenized equities remain central to Securitize strategy

During Q2, Securitize received FINRA approval for its broker dealer to custody tokenized securities and support atomic settlement between securities and stablecoins. It also partnered with Computershare and Continental Stock Transfer & Trust on issuer sponsored tokenized equities and announced infrastructure work with Jump Trading and Jupiter.

Its U.S. strategy is increasingly tied to changes in traditional market infrastructure. The NYSE already plans 24/7 trading and onchain settlement for tokenized securities, while Securitize is serving as a design partner for its planned digital platform. Shortly after quarter end, Securitize also partnered with Cantor Fitzgerald on infrastructure intended to support onchain IPOs and follow on offerings.

The company also expanded several tokenized fund products. BlackRock’s BUIDL became available as yield bearing collateral through OKX and Standard Chartered, while Securitize expanded its STAC fund to Solana and received a $250 million USDe allocation from Ethena Labs.

What happens next for Securitize

Securitize will hold its Q2 earnings call at 8:30 a.m. ET on Aug. 13, when management is expected to provide further detail on costs, revenue trends and its post listing capital position. Presentation materials and a transcript are scheduled to become available through its investor relations site after the call.

Regulation is another near term focus. Domingo wrote that he “expect[s] further regulatory progress” on Friday and referred to an SEC innovation exemption alongside “Reg Crypto.” The SEC’s official schedule confirms an Aug. 14 open meeting to consider proposed rules for a tailored offering regime covering certain crypto related investment contracts. However, the published agenda does not describe the meeting using Domingo’s exact wording.

The SEC has separately confirmed that an innovation exemption for limited onchain trading remains under development. Commissioner Hester Peirce said in June that the planned framework could permit onchain trading of National Market System stocks while regulators assess how those markets should operate.