Gemini Credit Card Revenue Overtakes Exchange Fees
Services revenue reached $23.5 million as exchange fees fell 38% and total revenue rose 37% to $45.5 million.
Gemini Space Station (GEMI), a global crypto and markets platform, reported that services revenue overtook exchange fees in the quarter ended June 30, 2026, as a softer crypto market cut trading commissions and the company’s credit card, staking and other fee lines carried the top line.
Total revenue grew 37% year over year to $45.5 million from $33.3 million. Exchange transaction revenue fell 38% from $20.2 million to $12.5 million, with total trading volume down to $3.8 billion from $11.3 billion. Services revenue rose 149% from $9.5 million to $23.5 million.
Transaction revenue as a whole dropped 15% to $17.8 million. OTC revenue increased to $4.7 million from $0.6 million, driven by higher institutional client activity, several larger trades and continued expansion of its electronic OTC platform. Prediction markets revenue was $0.5 million, a new, small and growing segment.
Services revenue and interest income increased 117% to $26.0 million, driven primarily by credit card and staking. Credit card revenue increased 231% to $16.2 million on growth in the Gemini Credit Card user base. Staking revenue increased 50% to $4.0 million. Advisory fee revenue was $2.7 million. Custodial fee revenue was $0.6 million, down from $1.9 million, due in part to a decrease in crypto asset prices and select institutional custody net outflows. Interest income was $2.4 million.
Operating loss improved by approximately $17.2 million, or 18%, sequentially, marking the third consecutive quarter of improvement. Total operating expenses declined 15% sequentially to $122.4 million from $144.5 million in the first quarter of 2026, reflecting lower restructuring costs, reduced stock-based compensation and continued expense discipline after cost-optimization initiatives announced earlier in 2026, including a February 2026 reduction in force and exits from international markets.
Year over year, total operating expenses increased 24% to $122.4 million, driven primarily by higher stock-based compensation associated with the IPO and credit-card-related costs. Salaries and compensation increased 31% to $48.2 million, including $20.3 million of stock-based compensation; excluding that, salaries and compensation decreased 20% to $27.9 million. Sales and marketing decreased 45% to $8.8 million, with marketing acquisition and brand spend down 99% to $0.1 million. Credit card rewards and promotional and referral incentives increased 33% to $8.7 million. Technology expenses were $18.8 million. General and administrative expenses increased 7% to $20.6 million.
Transaction losses increased from $3.6 million to $20.1 million, primarily due to a $16.1 million provision for credit losses on the credit card portfolio tied to an identity fraud event identified earlier in 2026. The company initially established a $4.1 million discrete reserve in the first quarter of 2026 and later updated its CECL estimate as additional accounts from the same origination cohort migrated into later-stage delinquency. Managed credit card receivables grew to $219.6 million at quarter-end from $93.5 million a year ago. The elevated provision is concentrated within the identified fraud-related cohort and does not reflect broad-based deterioration in the underlying credit portfolio.
Net loss decreased 19% year over year to $107.7 million, or $(0.89) a share. Adjusted EBITDA decreased to $(74.0) million from $(51.9) million, primarily attributable to market-driven realized and unrealized losses on bitcoin received in a May 2026 private placement following declines in bitcoin prices. Cash and cash equivalents totaled $188.6 million. Monthly Transacting Users were 580,000. Assets on Platform were $8.4 billion, reflecting lower crypto asset valuations and select institutional custody outflows.
On July 7, 2026, Gemini launched commission-free stock trading for U.S. customers in eligible states. Gemini Predictions set a new monthly volume record in each month of the second quarter, with event contracts traded up 93% quarter over quarter; cumulative contracts since the December 2025 launch surpassed 225 million. The company’s derivatives clearinghouse went live on August 4, 2026, after CFTC DCO approval in April.