Securitize reported record quarterly revenue as the tokenization platform continues to move toward an eventual public listing through its proposed SPAC merger with Cantor Equity Partners II (CEPT), underscoring growing institutional demand for tokenized real-world assets despite continued profitability pressures.
The Miami-based company reported Wednesday that first-quarter revenue rose 39% year-over-year to $19.5 million, the highest quarterly revenue in its history.
Asset services revenue surged 201% to $8.3 million, reflecting continued expansion at Securitize Fund Services, which served 650 active funds as of March 31. Tokenization revenue totaled $11.1 million, compared with $11.0 million in the same period last year.
At the end of the quarter, the company had $3.4 billion in tokenized assets under management, $24.9 billion in assets under management, and $1.9 billion in total trading volume.
Despite the revenue growth, net loss widened to $7.9 million, or 88 cents per diluted share, as the company increased spending to expand and prepare to become a public company. However, even though the company fell to $800,000 from $4.1 million a year earlier, it remained profitable on an adjusted Ebitda basis.
Chief Financial Officer Francisco Flores said the company continues to invest in its employees and infrastructure to support long-term growth and public market transformation while maintaining what he called disciplined expense management.
“We achieved strong positive operating leverage during the quarter despite increasing investments in our people to support business growth and prepare for becoming a public company,” Flores said. “We ended the quarter in a strong liquidity position, with operating cash flow broadly at breakeven before working capital changes and public company-related expenses,” he added.
Securitize has agreed to merge with Nasdaq-listed special purpose acquisition company Cantor Equity Partners II in a deal that will make it one of a handful of public companies focused primarily on tokenized securities and real-world assets. CEPT shares rose 5% on Wednesday.
Update (May 20, 10:26 p.m. ET): Updated headline to add CFO comments and include more context about the company’s profitability.
