Securitize revenue slips 5% as costs push adjusted EBITDA negative

Securitize reported Q2 revenue of $14.4 million, down 5%, as operating costs rose 56% and pushed adjusted EBITDA to a $5.5 million loss.

"We are very well positioned to lead the next stage of institutional tokenization growth," Carlos Domingo, chairman and CEO, said.

Average tokenized assets under management hit a record $4.3 billion, up 16%, while aggregate transaction volume surged 147% to $5.3 billion. Tokenization revenue fell 12% to $7.84 million, outweighing 3% growth in asset servicing to $6.60 million. Diluted loss per share widened to $2.37 from $0.72.

The July 1 business combination with Cantor Equity Partners II left the first tokenization company to list on the New York Stock Exchange with roughly $350 million in cash and no debt. Management targets positive adjusted EBITDA as a near-term goal but gave no quantitative guidance.

Total operating costs and expenses climbed 56% to $24.14 million, with selling, general and administrative expense up 133% to $8.22 million and compensation and benefits up 31% to $10.55 million. The provision for expected credit losses jumped to $1.32 million from $0.11 million. Securitize also recorded $1.88 million of one-time public-company readiness costs, which were excluded from adjusted EBITDA.

GAAP net loss widened 253% to $21.69 million, amplified by $11.73 million of fair-value charges on option liabilities, simple agreements for future equity and derivative liabilities. Adjusted EBITDA, which strips out those items, still swung from a $1.8 million profit to a $5.5 million loss.

Securitize Fund Services was servicing 663 active funds at quarter-end, but assets under administration fell about 20% to $24.3 billion. Cash and cash equivalents rose to $33.60 million at June 30 from $24.87 million at the end of 2025, supported by $19.37 million of financing cash flow. Operating activities used $13.73 million in the first half, versus $10.97 million a year earlier.

Operationally, Securitize received FINRA approval to custody tokenized securities and participate in underwriting and selling groups. It announced relationships with Computershare and Continental Stock Transfer & Trust for issuer-sponsored tokenized equities, plus collaborations with Jump Trading, Jupiter and, after quarter-end, Cantor Fitzgerald. The company did not quantify revenue contributions from these initiatives.

The results cover predecessor Securitize I, Inc. before the July 1 business combination and July 2 start of NYSE trading. Securitize said it added roughly $1 billion of AUM during the quarter after crypto-driven declines over the prior two quarters, with more than seven assets each crossing $100 million in AUM.

The widening loss signals management must convert record platform activity into recurring revenue while reining in expense growth. Investors will watch the Q3 earnings call for progress toward positive adjusted EBITDA and revenue from the new tokenized-equities partnerships.

This article is for informational purposes only and does not constitute investment advice.