Gemini Space Station recorded a $107.7 million net loss in the second quarter as weaker cryptocurrency markets triggered a sharp decline in trading activity.
The crypto exchange has now posted four consecutive quarterly losses since listing on Nasdaq in September 2025. However, the latest loss narrowed 19% from the $133.2 million that Gemini reported one year earlier.
Total revenue increased 37% year over year to $45.5 million, supported by rapid growth in credit cards, staking and other services. Those gains contrasted with a 66% collapse in spot trading volume, which fell to $3.8 billion from $11.3 billion.
Gemini Trading Revenue Falls as Crypto Activity Slows
Gemini’s transaction revenue decreased 15% year-over-year to $17.8 million as both retail and institutional customers reduced their trading activity.
Exchange revenue fell 38% to $12.5 million. Retail spot volume declined 53% to $700 million, while institutional volume dropped 68% to $3.1 billion.
The company partly offset those declines with stronger over-the-counter activity. OTC revenue climbed to $4.7 million from $611,000 as institutional customers executed several large trades and increased their use of Gemini’s electronic OTC platform.
Gemini also cut costs following its February workforce reduction and withdrawal from several international markets. Operating expenses declined 15% from the previous quarter to $122.4 million, helping its operating loss improve 18% sequentially to $76.9 million.
“While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue,” CEO Tyler Winklevoss said.
Credit Card Fraud and Crypto Losses Weigh on Results
Gemini’s services revenue rose 149% year over year to $23.5 million, highlighting the company’s increasing reliance on products outside conventional crypto trading.
Credit card revenue jumped 231% to $16.2 million as the cardholder base expanded. Staking revenue increased 50% to $4 million, while advisory services contributed $2.7 million.
However, growth in Gemini’s credit card business brought additional risks. Transaction losses surged to $20.1 million from $3.6 million a year earlier, primarily because the company recorded a $16.1 million provision for expected credit losses.
Gemini attributed much of that provision to fraud involving accounts opened during the first quarter. Management said it had identified additional affected accounts as its investigation progressed and introduced new fraud-detection and account-monitoring measures.
The exchange also recorded a $60.7 million realized and unrealized loss on crypto assets and receivables. A $35.7 million gain on related-party crypto loans partly offset that loss.
Assets held on Gemini’s platform fell 54% to $8.4 billion, reflecting lower cryptocurrency valuations and some institutional custody outflows. Monthly transacting users nevertheless increased 11% year over year to 580,000.
Gemini Turns to Stocks and Prediction Markets
Gemini is expanding into new products as it attempts to reduce its dependence on volatile spot trading fees.
Prediction markets generated approximately $500,000 in quarterly revenue. Event contracts traded increased 93% from the first quarter, while cumulative contracts surpassed 225 million following the product’s December 2025 launch.
The company’s derivatives clearinghouse began operating on Aug. 4 after Gemini secured Commodity Futures Trading Commission (CFTC) approval in April.
The infrastructure allows Gemini to clear its own prediction contracts and could support future US offerings involving crypto futures, options and perpetual contracts.
Gemini also launched commission-free stock trading for eligible US customers in July. President Cameron Winklevoss said the platform had changed more during the previous nine months than it had in the preceding decade.
The expansion gives Gemini more potential revenue sources, but its second-quarter results show that fast-growing services have yet to offset weak exchange activity, credit losses and exposure to falling crypto prices.
