Gemini Space Station, the Nasdaq-listed exchange founded by Cameron and Tyler Winklevoss, reported third-quarter revenue of $40.9 million, down 19% from $50.6 million a year earlier and 10% from the second quarter, according to its results release on Thursday.
The net loss narrowed to $58.6 million, or $0.46 a share, from $159.5 million a year ago, as operating costs fell 30%.
The headline number for an exchange is trading. On Gemini’s platform it fell to $4.5 billion in the quarter, from $16.4 billion a year earlier, a 73% drop. The money now comes mostly from elsewhere: services revenue and interest income made up 59% of net revenue, against 47% a year ago.
The numbers that matter
Exchange revenue fell 47% to $13.4 million. Volume did rise 18% from the second quarter’s $3.8 billion, which Gemini puts down to more institutional Zcash trading and “expanded affiliated market-making”.
The biggest single line in services is the Gemini credit card. Card revenue rose 82% from a year ago to $15.5 million, though it slipped 4% from the second quarter. Staking brought in $4.2 million, down 29%.
Prediction markets, the business Cameron Winklevoss calls central to “Gemini 2.0”, produced $0.8 million, up 52% from the second quarter. That is about 2% of revenue.
Costs did most of the work. Total operating expenses fell to $119.9 million from $171.4 million, the third quarter in a row of declines, as marketing spending dropped 75% and pay fell after a February cut to staff. The operating loss was $79.0 million.
Cash and cash equivalents stood at $194.1 million on 30 Sep, down from $252.2 million at the end of 2025. The company counted 577,000 monthly transacting users, 2% fewer than a year earlier. Assets on the platform were $13.4 billion, against $8.4 billion at the end of June and $21.3 billion a year earlier.
The skeptics’ reading
Three lines in the release deserve a second look.
First, about $1.2 billion, or 26%, of the quarter’s spot volume involved trades between outside customers and Gemini’s own market maker. Part of the quarter-on-quarter volume recovery is the company trading with its customers.
Second, the adjusted EBITDA loss shrank to $11.6 million from $74.0 million in the second quarter. The release says that included a $50.8 million swing in its gains and losses on crypto holdings and on crypto loans to related parties: a $25.0 million loss in the second quarter became a $25.7 million gain. With bitcoin below $70,000 this morning, that swing can run the other way in the fourth quarter.
Third, the card book is growing older. Charge-offs rose to $11.5 million from $3.4 million a year earlier, mostly tied to accounts from a fraud event in the first quarter, and the non-fraud 30-day delinquency rate rose to 3.4% from 3.3%.
Investors were relieved anyway. Gemini shares rose 6.5% in after-hours trading to $2.79, The Block reported, leaving them down about 75% this year.
“Operating expenses declined for a third consecutive quarter, and as we invest in growth, we intend to stay disciplined about where those dollars go,” Tyler Winklevoss said.
What’s next
Management hosts its results call at 8:30 a.m. ET (13:30 UTC) on Friday.
One question the release does not answer is Europe. Gemini said in February it would wind down its UK, EU and Australian operations.
On Thursday CoinDesk reported, citing one unnamed person, that Gemini had sold its UK and European units to the payments firm KAST for under $10 million. Gemini declined to comment to CoinDesk, KAST would not discuss a deal, and neither company has confirmed one.
The other is distribution. Gemini’s August letter of intent with Apex Fintech Solutions, which would make Gemini the venue for crypto event contracts sold through Apex’s brokerage customers, is still non-binding.
Gemini’s quarter follows a season in which crypto results have leaned on the price of crypto itself: BitGo’s revenue halved and a bitcoin gain made its profit, and Bitmine’s $6.3 billion annual loss came from the ether it holds. Gemini’s own dealings with regulators continue too, after a court refused to undo its $5 million CFTC settlement in October.
This article is for information only and is not investment advice.