Billy Miller

Securitize 2Q26 Earnings — My quick take The numbers Revenue: $14.4M, down 5% YoY. Tokenization fell 12% to $7.8M despite average AUM up 16%, implies take-rate compression. Asset servicing grew 3% to 6.6M. Headline net loss: $21.7M — but ~$12M of it is noise. Pre-IPO fair-value marks on the option liability, SAFEs, and derivatives, which disappear going forward since those instruments converted at the July 1 close. The real loss: $9.7M from operations (vs. breakeven a year ago) and adjusted EBITDA of -$5.5M (vs. +$1.8M). The deterioration is cost-driven: opex up 56% against declining revenue. Cash burn: ~$7M/quarter, trivial against the balance sheet. Operating metrics Record average tokenized AUM of $4.3B, up 16%, with ~$1B added in the quarter, recovering the prior two quarters' declines. Transaction volume of $5.3B, up 147%. Soft spot: Fund Services AUA down ~20% to 24.3B. Valuation at $5.79 ~$945M market cap on 163.3M basic shares. ~$350M cash, no debt post-merger → ~$595M EV, roughly 4x annualized revenue for the category leader in a market growing 50% YTD. Strategic progress The equities-tokenization stack assembled fast: NYSE listing with their own stock tokenized day one, Computershare/Continental transfer-agent deals, FINRA custody and underwriting approval, Cantor partnership for onchain IPOs, Jump/Jupiter liquidity, and Redfearn as President. The bigger picture take here Despite the bear market, tokenized RWAs have grown ~50% YTD, and the entire market is still only ~$40B. That's extraordinarily small. And this is before the CLARITY Act and, more importantly for both @Securitize and @Bullish, before any innovation exemption, the regulatory unlock that would let tokenized securities actually trade, settle, and be used as collateral at scale rather than sitting in compliant wrappers. These are still the early days of tokenization. What Securitize and a handful of other players are doing right now is groundwork: transfer-agent rails, broker-dealer approvals, custody, underwriting capability, exchange partnerships. None of it monetizes much today, which is exactly what this quarter's P&L shows. But that's the point: the infrastructure has to exist before the assets migrate. It will take time, and quarters like this one will test patience but I don't foresee many more of them. Once the regulatory and market pieces align, the companies that spent the bear market building the regulated stack are the ones positioned to capture the real growth phase and Securitize, as the category leader with $350M of dry powder, is at the front of that line.