Securitize posts $66.3m first-quarter loss
Securitize Corp. reported a net loss of $66.3m for its first quarter as a New York Stock Exchange (NYSE) listed company, according to its results release yesterday. The company said tokenized assets and revenue grew.
Tokenized assets are traditional financial instruments recorded on a blockchain. Securitize, which trades as SECZ, said average tokenized assets reached a record $5.0bn in the third quarter, up 39%. Revenue was $18.6m, up 13% from $16.5m a year earlier, which the company called its second-highest quarterly revenue.
The loss, $0.41 per diluted share, compares with net income of $4.1m a year earlier. Chief Financial Officer Francisco Flores said: “Approximately 90% of our reported net loss from the quarter was attributable to expenses and accounting charges, primarily non-cash in nature, including those associated with our business combination and NYSE listing, as well as warrant-related expenses.” The company cited a $23.2m change in the fair value of an earnout liability (a payment owed to former owners if targets are met) and a $20.6m loss on settling convertible instruments. Adjusted EBITDA (earnings before interest, tax, depreciation and amortisation), a non-GAAP measure that falls outside standard US accounting rules, was a $2.0m loss against a $3.6m profit.
Growth was uneven. Period-end tokenized assets were $4.8bn, up 9% and below the average. Asset servicing revenue fell 6% to $7.15m, while tokenization revenue rose 28% to $11.46m. Fund Services assets under administration (AUA) fell 29% to $25.2bn.
Securitize ended the quarter with $298.9m of cash and no debt. It plans to buy River One, an asset-backed financing business, with completion expected in the fourth quarter. A $50m buyback was authorised on 6 November.
Securitize Stocks launched on Solana on 8 October. It offers security entitlements, meaning claims on shares held in custody, backed 1:1 by underlying shares, for eligible investors in the US, Europe and other permitted jurisdictions. It runs through Securitize Markets, LLC, a broker-dealer registered with the US Securities and Exchange Commission (SEC) that operates an alternative trading system (ATS), a trading venue that is not a formal exchange. Securitize tokenizes BlackRock’s BRSRV fund for stablecoin reserve management.
Chairman and Chief Executive Carlos Domingo said: “to me it’s the clearest sign yet that institutions are past the experimenting stage.”
For brokers, exchanges and payment firms, this suggests tokenized equities and stablecoin reserve management are becoming competitive infrastructure rather than pilots. That is our inference, not the company’s claim.
