Securitize, a platform for issuing and managing tokenized digital asset securities, reported a net loss of $21.7 million for the second quarter, with revenue declining 5% year-over-year to $14.4 million, marking the company's first earnings release since going public.

The loss widened significantly from $6.1 million in the same period of 2025 and translated to $2.37 per diluted share. Adjusted EBITDA swung to a negative $5.5 million from a positive $1.8 million in the second quarter of 2025.

Total operating costs and expenses surged 56% to $24.1 million. Selling, general, and administrative expenses jumped 133% to $8.2 million, while compensation and benefits rose 31% to $10.5 million. The provision for expected credit losses climbed sharply to $1.3 million from $111,885 a year earlier.

The quarter's results were also affected by a $29.3 million loss stemming from a change in the fair value of an option liability, partially offset by a $21.8 million gain from a change in the fair value of a derivative liability.

On the revenue side, tokenization revenue declined 12% to $7.8 million, while asset-servicing revenue rose 3% to $6.6 million. Average tokenized assets under management reached a record $4.3 billion, up 16%, and quarter-end tokenized AUM increased 9% to $4.3 billion.

Aggregate transaction volume surged 147% to $5.3 billion. As of June 30, Securitize Fund Services was servicing 663 active funds, while assets under administration declined approximately 20% to $24.3 billion.

Securitize began trading on the New York Stock Exchange on July 2 after completing its business combination. Chief Financial Officer Francisco Flores stated that the transaction left the company with approximately $350 million in cash and no debt entering the third quarter.

During the quarter, Securitize announced tokenized-equities partnerships with transfer agents Computershare and Continental Stock Transfer & Trust, along with a collaboration with Jump Trading and Jupiter. The partnerships come as traditional financial institutions and fintech firms increasingly explore blockchain-based tokenization of equities, funds, and other securities, a market that has attracted growing institutional interest.

The company also received FINRA approval to custody tokenized securities and to participate in underwriting and selling groups for both primary and secondary offerings, expanding its regulatory toolkit as competition in the tokenization infrastructure space intensifies.

SECZ shares fell 19.85% to $6.30 in after-hours trading as of 5:08 p.m. ET Wednesday, following a regular-session close that was 6.36% higher at $7.86.