Gemini Space Station, parent company of the Gemini crypto exchange, reported third-quarter revenue of $40.9 million on November 12, marking a 19% decline from the same period a year earlier. The company's stock rose 3.05% to $2.70 in after-hours trading following the announcement, despite revenue missing analyst expectations of $44.38 million.
The stock gain reflected better-than-expected profitability metrics. Gemini's net loss narrowed 63% to $58.6 million, with loss per share reaching $0.46 against analyst forecasts of $0.58.
Exchange Revenue Pressured by Retail Pullback
Exchange revenue fell 47% year-over-year to $13.4 million as spot trading volume declined 73% to $4.5 billion from $16.4 billion in the prior year period. The company attributed the decline primarily to reduced retail trading activity.
However, sequential metrics showed improvement. Exchange revenue rose 7% quarter-over-quarter, and spot volume increased 18%, driven partly by institutional Zcash activity and affiliated market-making operations.
Credit Card Business Outpaces Exchange Revenue
Credit card revenue jumped 82% year-over-year to $15.5 million, exceeding exchange revenue for the first time. Services revenue also grew 7% year-over-year.
Card charge-offs, however, rose significantly to $11.5 million from $3.4 million, with the company linking most of the increase to accounts tied to a first-quarter fraud event. Non-fraud delinquencies of 30 days or more edged up to 3.4% from 3.3% in the second quarter.
Cost Cuts Outpace Revenue Decline
Gemini reduced operating expenses by 30% to $119.9 million, marking the third consecutive quarterly decline. Sales and marketing spending dropped 75% to $8.3 million.
Adjusted EBITDA showed an $11.6 million loss, compared to a $74 million loss in the second quarter. The company benefited from lower card provisions, reduced staff costs, and a $50.8 million favorable swing in crypto-related results.
Cash and equivalents fell to $194.1 million from $252.2 million at the end of 2025. Prediction markets revenue reached $0.8 million, up 52% from the second quarter.
Stock Performance and Outlook
Gemini's stock declined 3.68% during regular trading to close at $2.62 Thursday, following weakness in the regular session. The company's shares have lost 75.2% year-to-date through November 6.
CEO Tyler Winklevoss stated in the earnings release: We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time.
The company's deal with Apex Fintech Solutions remains a non-binding letter of intent, with further details expected during a Friday earnings call.
