Securitize (NYSE: SECZ) reported Q2 2026 total revenue of $14.4 million, down 5% from $15.3 million a year earlier, while the diluted loss per share widened to $2.37 from $0.72. Average tokenized AUM increased 16% and aggregate transaction volume rose 147%, but adjusted EBITDA swung to a $5.5 million loss from a $1.8 million profit. The quarter ended June 30, and the results cover predecessor Securitize I, Inc. before the July 1 business combination and July 2 start of NYSE trading.

Core earnings results

Revenue declined because a 12% contraction in tokenization revenue outweighed 3% growth in asset servicing revenue. At the same time, total operating costs rose 56%, producing a substantially wider operating loss.

GAAP net loss was also affected by fair-value changes in financial liabilities, but the negative adjusted EBITDA result shows that these accounting items were not the only source of the deterioration.

Adjusted EBITDA is a non-GAAP measure that excludes items including liability fair-value changes, expected credit losses, stock-based compensation and certain public-company readiness costs.

Business and segment performance

Platform activity expanded despite the decline in reported revenue. Average tokenized assets under management reached a record $4.3 billion, up 16%, while total tokenized AUM at June 30 was also $4.3 billion, up 9%. Securitize said it added approximately $1 billion of AUM during the quarter after crypto-driven declines over the previous two quarters.

Aggregate transaction volume increased 147% to $5.3 billion. However, tokenization revenue fell 12% to $7.84 million, indicating that higher AUM and transaction activity did not translate into quarterly growth for that segment. Management noted that revenue can be volatile at the company’s current stage of development.

Asset servicing revenue increased 3% to $6.60 million, partially offsetting the tokenization decline. Securitize Fund Services was servicing 663 active funds at quarter-end, but its assets under administration fell approximately 20% to $24.3 billion.

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

Profitability, cash flow and the balance sheet

The cost base expanded much faster than revenue. Selling, general and administrative expense rose 133% to $8.22 million, while compensation and benefits increased 31% to $10.55 million. The provision for expected credit losses climbed to $1.32 million from $0.11 million, and cost of revenue increased 13%.

Securitize also recorded $1.88 million of professional fees and other one-time public-company readiness costs in the quarter. Although these costs were excluded from adjusted EBITDA, that measure still moved from a profit to a loss, making a return to positive adjusted EBITDA an important operating target.

Cash-flow figures were provided for the first six months rather than Q2 alone. Operating activities used $13.73 million during the first half of 2026, compared with $10.97 million a year earlier. Cash and cash equivalents nevertheless increased to $33.60 million at June 30 from $24.87 million at the end of 2025, primarily with support from $19.37 million of financing cash flow, including a $20 million option prepayment liability.

The June 30 predecessor balance sheet included $74.95 million of convertible promissory notes. Following the July 1 business combination, CFO Francisco Flores said Securitize entered the third quarter with approximately $350 million in cash and no debt, representing a material change from the quarter-end balance sheet presented in the release.

Fair-value charges magnified the loss but did not fully explain it

Fair-value movements in option liabilities, simple agreements for future equity and derivative liabilities generated a net expense of $11.73 million in Q2 2026, compared with $4.11 million a year earlier. These changes contributed to total other expense rising to $11.94 million from $5.26 million and amplified the GAAP net loss.

However, adjusted EBITDA excludes these fair-value movements and still declined by approximately $7.3 million year over year. The earnings deterioration therefore reflected both volatile liability remeasurement and higher underlying operating expenses relative to revenue.

Management’s view

CEO Carlos Domingo emphasized Securitize’s expanded infrastructure for tokenized equities, custody, settlement and institutional distribution. Management sees the company’s partnerships and regulatory capabilities as a foundation for further institutional tokenization growth.

Flores acknowledged that quarterly revenue remains volatile and said Securitize will continue investing in business expansion and new capabilities. He identified positive adjusted EBITDA as an important near-term goal but did not provide quantitative revenue or earnings guidance.

Risks investors need to watch

• Activity is not yet translating into revenue growth. Average tokenized AUM and transaction volume rose substantially, but total revenue declined and tokenization revenue fell 12%.
• Operating expenses are growing faster than the top line. Higher SG&A, compensation and credit-loss provisions drove the adjusted EBITDA reversal and wider operating loss.
• Fund-services AUA declined. Assets under administration fell approximately 20%, which could limit asset-servicing growth if the decline persists.
• Cash consumption remains meaningful. The post-combination liquidity increase provides a larger buffer, but continued operating losses and negative operating cash flow would consume that capital over time.
• GAAP earnings may remain volatile. Liability fair-value changes had a material impact on Q2 net loss, making period-to-period GAAP comparisons more difficult.

Summary

Securitize’s Q2 2026 results showed expanding tokenized AUM, transaction volume and regulatory capabilities, but those gains did not produce revenue growth or positive adjusted EBITDA. The central issue is whether the company can convert higher platform activity and new institutional relationships into recurring revenue while bringing expense growth under control. The post-quarter business combination strengthened liquidity, leaving revenue conversion, asset-servicing AUA and progress toward positive adjusted EBITDA as the main operating indicators to monitor.

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