Revenue rose 37% but trading volumes cratered. Services, credit cards and prediction markets lifted the top line while fraud-related credit losses weighed on the bottom line.
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Gemini Space Station reported a $107.7 million net loss for the second quarter, its fourth straight quarterly deficit since listing on Nasdaq. The loss for the period ending June 30 compares with a $133.2 million loss in the same quarter last year.
Total revenue rose 37% year over year to $45.5 million, driven by services rather than core trading. Spot trading volume fell 66% to $3.8 billion from $11.3 billion a year earlier. Transaction revenue declined 15% to $17.8 million, and exchange revenue dropped 38% to $12.5 million.
Retail spot volume fell 53% to $700,000. Institutional volume slid 68% to $3.1 billion.
Services revenue jumped 149% to $23.5 million. Credit card revenue more than doubled, rising 231% to $16.2 million. Staking revenue increased 50% to $4 million. Over-the-counter revenue climbed to $4.7 million from $611,000.
The company booked $20.1 million in transaction losses, up from $3.6 million a year earlier. A $16.1 million provision covered expected credit losses on the credit card portfolio, with roughly $10 million linked to fraud activity identified in the first quarter. Gemini said it has added fraud detection and account monitoring tools. Management described the loss as tied to a single group of accounts and not indicative of broader credit issues.
Gemini also recorded a $60.7 million loss on crypto assets and receivables, partly offset by a $35.7 million gain on related-party crypto loans. Assets on the platform fell 54% year over year to $8.4 billion, down from $18.2 billion a year earlier.
Monthly transacting users rose 11% year over year to 580,000 but slipped 2% from the first quarter.
The firm is diversifying beyond spot trading. Prediction markets generated $524,000 in revenue for the quarter, with event contracts traded rising 93% from the first quarter. Cumulative prediction market contracts have surpassed 225 million. Gemini launched commission-free stock trading for eligible U.S. customers in July.
Its clearinghouse, Gemini Olympus, registered as a derivatives clearing organization on April 29 and went live on August 4, allowing the company to settle its own prediction contracts.
Management will discuss the quarter on an earnings call at 8:30 a.m. ET on August 14. Gemini remains a defendant in an active investor lawsuit tied to its IPO disclosures in federal court.
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