Securitize’s tokenization business reached new highs in assets and transaction activity, but revenue declined in its first earnings report since becoming a public company.

Shares of Securitize (SECZ) dropped 20% in after-hours trading Wednesday after the company posted second-quarter results that came in below Wall Street expectations.

The firm recorded $14.4 million in revenue for the quarter, down 5% from a year earlier and short of the $20.6 million analysts had forecast.

Securitize reported a per-share loss of $2.37, significantly wider than the expected $0.15 loss. Its net loss reached $21.7 million, while adjusted EBITDA swung to a $5.5 million loss from a $1.8 million profit in the same quarter last year.

The results arrive as institutional interest in tokenization continues to increase. Financial firms are exploring blockchain-based versions of investment funds, stocks and other traditional assets, with Securitize serving as a major infrastructure provider. Despite that momentum, the company has yet to turn rising platform activity into sustained revenue growth.

CEO Carlos Domingo characterized the quarter as “softer” but highlighted the company’s stronger first-half performance. Revenue during the first six months was 16% higher than a year earlier, boosted by a record $19.5 million in first-quarter revenue.

Platform Metrics Continue to Grow

Securitize’s operating activity strengthened even as its financial results disappointed investors.

Average tokenized assets under management rose 16% year over year to $4.3 billion, setting a new record. Transaction volume increased 147% to $5.3 billion.

The company’s fund-services division supported 663 active funds with $24.3 billion in assets under administration.

Securitize provides the infrastructure required by asset managers to issue and manage traditional financial products in tokenized form on blockchain networks. Its customers include major firms such as BlackRock and KKR, giving it a prominent position in the institutional tokenization market.

BUIDL, the tokenized money-market fund launched with BlackRock in 2024, has grown into one of the largest products of its kind.

Beyond BUIDL, Securitize is working with the New York Stock Exchange on technology for tokenized securities trading. It has also partnered with Computershare to support tokenized shares for U.S. companies.

Wednesday’s results marked the company’s first quarterly earnings report since it became publicly listed following its July merger with a Cantor-backed special purpose acquisition company.