First Earnings Shock for BlackRock Partner Securitize: Shares Drop 20%

Securitize shares fell 20% in after-hours trading following second-quarter results that missed expectations.

Securitize (SECZ), which issues and manages BlackRock’s BUIDL tokenized money market fund, failed to meet Wall Street expectations in its first earnings report since going public. The company’s shares fell sharply in after-hours trading on Wednesday.

Securitize reported $14.4 million in revenue for the second quarter. This figure represents a 5% decline compared to the same period last year and fell short of analysts’ $20.6 million revenue expectation. The company also reported a loss of $2.37 per share. The expectation was for a loss of $0.15 per share. Net loss reached $21.7 million, while adjusted EBITDA—a measure of profit before interest, taxes, depreciation, and amortization—resulted in a $5.5 million loss. This item had reported a profit of $1.8 million last year.

Assets on the Securitize platform grew

CEO Carlos Domingo characterized the quarter as “weaker” while noting that revenue in the first half of the year increased by 16% year-over-year. Revenue in the first quarter had reached a record $19.5 million.

Despite the weakness in financial results, platform activities continued to grow. The average assets under management of tokenized assets increased by 16% year-over-year to $4.3 billion. Transaction volume rose 147% to reach $5.3 billion. The fund services unit tracked 663 active funds and $24.3 billion in assets under management.

Securitize provides infrastructure for asset managers looking to convert funds and securities into digital tokens on the blockchain. The company works with BlackRock and KKR. It also collaborates with the New York Stock Exchange for tokenized securities trading and with Computershare for tokenized shares of U.S. companies.