Gemini's Q3 Revenue Falls 19% But Cost Cuts Lift Stock

Gemini Space Station (GEMI), the company behind the Gemini crypto exchange, posted third-quarter revenue of $40.9 million on November 12. That figure was 19% below the same period last year, as spot trading volume dropped 73%.

Nevertheless, Gemini shares gained 3.05% in after-hours trading on Thursday, reaching $2.70. The earnings report also showed a narrower loss than analysts had anticipated.

Exchange Revenue Nearly Halved as Retail Traders Pulled Back

The revenue decline was driven by trading, while services revenue increased 7%. Exchange revenue slid 47% year over year to $13.4 million. Gemini attributed the drop primarily to reduced retail trading activity.

Platform volume totaled $4.5 billion, down from $16.4 billion a year earlier. On a quarter-over-quarter basis, however, exchange revenue rose 7% and spot volume climbed 18%.

Gemini pointed to institutional Zcash (ZEC) activity and affiliated market-making as contributors to the volume increase.

Credit card revenue jumped 82% year over year to $15.5 million, now surpassing exchange revenue. But card charge-offs rose to $11.5 million from $3.4 million.

Gemini linked most of that increase to accounts tied to a first-quarter fraud event. Non-fraud delinquencies of 30 days or more rose slightly to 3.4% from 3.3% in Q2.

Gemini Cut Costs Faster Than Its Revenue Fell

Although revenue shrank 19%, Gemini trimmed operating expenses by 30% to $119.9 million. That marked the third consecutive quarterly decline. Sales and marketing spending fell 75% to $8.3 million.

The net loss narrowed 63% to $58.6 million. Loss per share came to $0.46, compared with the $0.58 analysts were forecasting. However, revenue fell short of the $44.38 million estimate.

Adjusted EBITDA showed an $11.6 million loss, versus $74 million in Q2. Lower card provisions and staff costs contributed, along with a $50.8 million favorable swing in crypto-related results.

“We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time,” CEO Tyler Winklevoss said in the release.

The Stock Still Has a Long Way Back

The after-hours gain followed a weak regular session. Gemini shares closed Thursday at $2.62, down 3.68%.

Shares had already lost 75.2% this year through November 6. They also declined after the Gemini Q2 earnings report.

Despite the cost cuts, 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.

Its deal with Apex Fintech Solutions remains a non-binding letter of intent. Investors will hear more on Friday’s call at 8:30 a.m. ET.