Clashing numbers are the most jarring part of this earnings report.
Securitize (Nasdaq: SECZ) released its first quarterly report since going public on Wednesday, and every business metric pointed upward: Q2 average tokenized assets under management (AUM) hit a record $4.3 billion, up 16% year-over-year; trading volume surged 147% to $5.3 billion; its fund services division now manages 663 active funds, with assets under advisement (AUA) reaching $24.3 billion. This is the Securitize that Wall Street knows best—the company that helps BlackRock issue and manage BUIDL, the world's largest tokenized money market fund.
But the financials tell a different story. Q2 revenue came in at $14.4 million, down 5% year-over-year and falling well short of the $20.6 million analysts had expected. Earnings per share (EPS) posted a loss of $2.37, far exceeding the market's projected loss of $0.15. Net loss for the quarter widened to $21.7 million, and adjusted EBITDA flipped from a $1.8 million profit in the same period last year to a $5.5 million loss. Shares tumbled as much as 20% in after-hours trading.
CEO Carlos Domingo described the results as "relatively weak" in the earnings report, while pointing to 16% year-over-year revenue growth for the first half as a silver lining—Q1's $19.5 million was actually a company record, meaning Q2 dragged down the momentum built up in the first half.
This report card also marks Securitize's first time reporting to the market since completing its Cantor Fitzgerald-backed SPAC merger this past July. The company is currently working with the New York Stock Exchange (NYSE) to build infrastructure for tokenized securities trading, and has also partnered with transfer agent Computershare to pave the way for US issuers to launch tokenized stocks. Impressive scale numbers don't automatically win over investors—that's the first lesson this tokenization darling has learned since going public.
