Gemini Q2 loss narrows, trading revenue plunges, credit cards soar

Gemini posted a net loss of $107.7 million in the second quarter, narrowing 19% from $133.2 million a year earlier. The stock fell 7% in after-hours trading after the Aug. 13 report. Revenue mix shifted sharply away from trading fees.

Trading volume on Gemini's main exchange dropped to $3.8 billion from $11.3 billion a year ago. Total assets on the platform fell to $8.4 billion from $18.2 billion, as bitcoin and other major tokens lost about half their value over the same period.

Exchange revenue, which comes from trading fees, fell 38% to $12.5 million. Monthly transacting users rose 11% year over year, but the average trade size shrank. Total revenue climbed 37% to $45.5 million, driven by two non-trading lines. Credit card revenue jumped 231% to $16.2 million. Staking revenue rose 50% to $4 million. The prediction market, launched in December 2025, contributed $500,000, up from $400,000 in the prior quarter, with event contracts more than doubling.

"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," Chief Executive Tyler Winklevoss said in a statement.

President Cameron Winklevoss added: "The Gemini platform has changed more in the past nine months than it did in the past decade."

Gemini is pushing into businesses that rely less on crypto price swings. In July, the exchange launched commission-free stock trading in the U.S. This month, it activated its own derivatives clearinghouse, approved by the Commodity Futures Trading Commission in April, allowing it to clear futures and options internally.

The pivot comes as larger rivals extend their leads. Coinbase reported its Q2 earnings in July, capturing a record 10.3% of crypto trading volume, up from 9.1% in the prior quarter, with 88% of its net income coming from sources other than bitcoin spot trading. Robinhood, which combines crypto, prediction markets, and stock trading in one app, reported similar revenue diversification.

Goldman Sachs analysts said in a note that the declining crypto market cap "weighs on asset level-driven revenue streams."

Gemini Space Station shares traded near $4 after the report, close to an all-time low. The stock debuted at $28 in September 2025, giving the company a valuation of roughly $3.3 billion, and hit a high of $45.89 on the first day. The company cut its workforce by 25% and exited the U.K., European Union, and Australia to focus on the U.S. market.

The derivatives clearinghouse activation this month gives Gemini a new revenue stream from futures and options. The immediate impact on earnings depends on trading volume, which remains depressed across the sector.