Gemini posted a $107.7 million net loss for the second quarter. Revenue climbed 37% to $45.5 million. Yet the numbers tell a story of an exchange still tethered to volatile trading volumes that collapsed amid a soft market.
Trading volume fell sharply to $3.8 billion from $11.3 billion a year earlier. Exchange revenue dropped 38% to $12.5 million. Assets on the platform shrank to $8.4 billion from $18.2 billion. But other segments showed promise. Credit card revenue surged 231% to $16.2 million. Staking brought in $4 million, up 50%. Even the new prediction markets added $500,000.
Cost Cuts and Product Bets Fail to Deliver Quick Profits
The Winklevoss twins have steered the company through multiple cycles. Tyler Winklevoss, CEO, offered a blunt assessment. “We still have work to do.” Cameron Winklevoss, president, pointed to rapid change. “Our platform has changed more in the past nine months than in the past decade.”
Those changes include a CFTC-approved derivatives clearinghouse launched in April. Commission-free U.S. stock trading rolled out. The company cut its workforce by 25% and exited the U.K., EU and Australia to focus on its home market. Operating expenses fell 15% sequentially to $122.4 million. Operating loss improved 18% from the first quarter.
And still the bottom line stayed deep in the red. Adjusted EBITDA came in at negative $74 million, worse than the prior-year period partly because of bitcoin price declines on holdings received in a May private placement. The stock, which debuted in September 2025, traded near $4 after the results. It has fallen about 87% from its IPO price. Some analysts floated takeover speculation.
This performance arrives after years of regulatory scrutiny. New York Attorney General Letitia James recovered $50 million from Gemini in June 2024 for investors in the now-defunct Gemini Earn program tied to Genesis Global Capital. Gemini also settled with the CFTC for a $5 million penalty in January 2025, as reported by SiliconAngle. Earlier, a settlement with the New York Department of Financial Services required returning at least $1.1 billion to customers and paying a $37 million fine, according to Reuters.
Those episodes forced Gemini to rebuild trust. The company now emphasizes compliance. It highlights institutional tools such as its electronic OTC platform, which helped lift OTC revenue to $4.7 million from $600,000. Prediction market contracts jumped 93% quarter-over-quarter, exceeding 225 million in total.
But core crypto trading still dominates the narrative. Monthly transacting users rose 11%. The user base expanded even as volumes cratered. That mismatch highlights a familiar industry pattern. Retail interest persists. High-frequency or large-ticket activity does not. Bitcoin and ether prices have traded in narrower ranges this year compared with prior bull phases. Tariff concerns and macro uncertainty weigh on risk assets, recent analysis shows.
Gemini’s first-half results paint a similar picture. Revenue reached $95.7 million, up from $68.6 million in the prior period. The net loss narrowed to $216.7 million from $282.5 million. Services revenue, which includes credit cards and staking, drove much of the gain. Transaction revenue continued to face pressure.
Investors appear impatient. Shares slid after the latest release. Citi analysts downgraded the stock to Sell in recent commentary, citing the persistent gap between revenue growth and profitability. The company raised $425 million in its IPO process last year despite heavy demand, according to Yahoo Finance.
So what comes next? Gemini continues to push into adjacent businesses. The credit card, issued with WebBank and Mastercard, now contributes meaningfully. Staking revenue grows with proof-of-stake assets. Prediction markets, licensed by the CFTC, target a regulated betting segment that could expand if political and event contracts gain traction.
Yet these lines remain small relative to traditional exchange fees. Prediction markets generated just $500,000 in the quarter. Credit cards, while fast-growing, carry their own credit risk and customer acquisition costs. The company reported ongoing expense discipline. Further restructuring cannot continue indefinitely without harming product development.
Industry peers face parallel challenges. Several large exchanges reported softer trading revenue in recent quarters amid lower volatility. Gemini’s public filings reveal the scale of past losses. For 2025, the firm recorded hundreds of millions in red ink even as revenue expanded.
Tyler Winklevoss has long argued that crypto needs mature financial products. The firm’s pivot reflects that belief. But turning diverse revenue streams into consistent profits takes time. Market conditions could improve if bitcoin breaks out or institutions allocate more capital. Until then, Gemini must prove it can sustain operations without relying on bull-market tailwinds.
The $108 million headline loss, rounded from the precise $107.7 million figure, serves as a reminder. Crypto exchanges remain capital intensive. Compliance costs stay high after years of enforcement actions. Diversification helps. It has not yet solved the profitability equation. Gemini’s next moves, whether through deeper institutional services or further product innovation, will determine if the company can finally move beyond survival mode.
Recent coverage from Gemini’s investor relations and GlobeNewswire confirms the figures and management commentary. The market’s reaction suggests investors want clearer signs of a path to positive earnings before they return in force.