Gemini's Revenue Reverses After a Year-Over-Year Gain

The Tip Desk · November 13, 2026 · 4 min read

Third-quarter revenue fell 19% to $40.9 million as spot volume dropped 73% and net loss narrowed 63% to $58.6 million.

Gemini Space Station, Inc. (GEMI), a crypto and markets company, reversed a year-over-year revenue gain in the third quarter as spot trading volume collapsed and the company continued to cut costs. Total revenue was $40.9 million, down 19% from $50.6 million a year earlier and 10% from the second quarter, after a 37% year-over-year increase to $45.5 million in the prior period.

Net revenue was $39.2 million. Exchange revenue declined 47% year-over-year to $13.4 million, after a 38% year-over-year drop to $12.5 million in the second quarter. Total trading volume fell to $4.5 billion from $16.4 billion in the year-earlier quarter. Sequentially, exchange revenue increased 7% and spot volume rose 18%, which the company said was supported by increased institutional Zcash activity and expanded affiliated market-making.

Transaction revenue decreased 40% year-over-year to $15.9 million. OTC revenue was $1.7 million, up 60% from $1.1 million a year earlier on growth in electronic OTC client activity, and down 64% from $4.7 million in the second quarter, which the company said was consistent with the variable nature of large institutional trades. Prediction markets revenue was $0.8 million.

Services revenue increased 7% year-over-year to $21.3 million, after a 149% year-over-year increase to $23.5 million in the second quarter. Services revenue and interest income together totaled $23.3 million, or 59% of net revenue, matching the second-quarter share and up from 47% a year earlier. Credit card revenue was $15.5 million, up 82% year-over-year after a 231% increase to $16.2 million in the prior quarter. Staking revenue was $4.2 million. Advisory fee revenue was $0.6 million after completion in July of the recognition period for a compensatory warrant arrangement. Interest income was $2.0 million.

Total operating expenses decreased 30% year-over-year to $119.9 million, the third consecutive quarterly decline, and 2% from $122.4 million in the second quarter. The company said the year-over-year decrease was driven primarily by lower sales and marketing expenses and lower salaries and compensation, partially offset by higher transaction losses.

Salaries and compensation were $56.4 million, including $32.7 million of stock-based compensation; stock-based compensation was $20.3 million in the second quarter. Excluding stock-based compensation, salaries and compensation decreased 36% year-over-year and 15% sequentially to $23.7 million, which the company said reflected the benefits of a February 2026 reduction in force. Sales and marketing decreased 75% year-over-year to $8.3 million.

Transaction losses were $10.6 million, including credit card provision expense of $9.2 million. Credit card charge-offs increased to $11.5 million from $3.4 million a year earlier, primarily reflecting accelerated charge-offs tied to a previously disclosed first-quarter fraud event. Managed credit card receivables were $202.2 million at quarter-end. Non-fraud 30-plus-day delinquency increased to 3.4% from 3.3% in the second quarter.

Operating loss was $79.0 million, compared with $120.8 million in the year-earlier quarter. Adjusted operating loss narrowed 42% year-over-year and 21% sequentially to $39.0 million, the fourth consecutive quarter of improvement. Net loss narrowed 63% year-over-year to $58.6 million from $159.5 million a year earlier. Loss per share was $0.46, compared with $6.67 a year earlier. Adjusted EBITDA was a loss of $11.6 million.

Monthly transacting users were 577,000. Assets on platform were $13.4 billion as of September 30, 2026. Cash and cash equivalents totaled $194.1 million.

On August 24, 2026, Gemini and Apex Fintech Solutions announced a non-binding letter of intent under which Gemini Titan, LLC would become the exclusive regulated venue for crypto event contracts distributed through Apex’s futures commission merchant. The company said it intends to make its in-house exchange and clearinghouse available to brokerages, FCMs, and other designated contract markets, and is in active discussions with additional prospective distribution and clearing partners.