Securitize Stock Jumps After Q3 Revenue Beat, $50 Million Buyback

Shares of Securitize Corp. (NYSE:SECZ) are trading sharply higher on Tuesday after the company reported third-quarter results that beat revenue expectations and announced a $50 million share repurchase plan.

While the company posted a wider-than-expected per-share loss, management said a substantial portion of the quarterly loss came from largely non-cash expenses and accounting charges related to its business combination and public listing.

• Securitize Holdings stock is surging to new heights today. Why are SECZ shares rallying?

SECZ Reports Mixed Third-Quarter Results

Securitize reported third-quarter revenue of $18.61 million, up 12.79% from $16.5 million a year earlier and above analyst expectations of $17.56 million. However, the company reported a loss of 41 cents per share, wider than the consensus estimate for a 26-cent loss.

During the earnings call, Chief Financial Officer Francisco Flores explained that earnout liabilities generated a $23.2 million charge after SECZ shares climbed from $11.78 at the close of the listing deal to $14.59 on Sept. 30. The liabilities are tied to earnout shares issued as part of the business combination and fluctuate with the company’s share price.

Flores added that if the stock’s price at year-end remained around levels at the time of the call, the company would expect to record a meaningful non-cash gain in the fourth quarter.

Tokenized Assets Reach Record Levels

Securitize Chairman and CEO Carlos Domingo said the company reached a record $5 billion in average tokenized assets during the third quarter, representing a 39% increase from a year earlier.

Domingo attributed the growth to major asset managers bringing investment products onto blockchain-based platforms, including new offerings from ARK Invest, BlackRock and Neuberger. He said the participation of established asset managers indicates that institutional interest in tokenized assets is moving beyond the experimentation stage.

Securitize, which went public on the New York Stock Exchange in July, operates a platform focused on tokenizing real-world assets and connecting traditional financial markets with blockchain technology.

$50 Million Buyback, River One Acquisition

Alongside its earnings report, Securitize announced a $50 million share repurchase plan, signaling management’s willingness to return capital to shareholders.

The company is also expanding its institutional finance business. Securitize entered into a definitive agreement to acquire River Credit Labs, known as River One, an institutional asset-backed financing platform developing technology to connect stablecoin capital with traditional lending markets.

The proposed acquisition adds to Securitize’s efforts to connect blockchain-based financial products with traditional capital markets.

Wall Street Adjusts SECZ Price Targets

Following the earnings announcement, several analysts made adjustments to their outlook on Securitize.

Rosenblatt analyst Chris Brendler maintained a Buy rating but lowered his price target from $13 to $12, while Needham analyst John Todaro maintained a Buy rating and raised his target from $11 to $13. Meanwhile, Citigroup analyst Peter Christiansen upgraded Securitize from Neutral to Buy, maintaining his $14 price target. All three analysts currently have Buy ratings on the stock.

SECZ Shares Trade Higher

SECZ Price Action: Securitize shares were up 23.53% at $8.61 at the time of publication on Tuesday, according to Benzinga Pro.

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