Crypto Exchange Gemini Shrank in Q3. So Why Did Its Stock Rise?

Gemini Space Station (GEMI), parent of the Gemini crypto exchange, reported third-quarter revenue of $40.9 million on November 12. That was 19% lower than a year earlier, as spot trading volume fell 73%.

Gemini stock still climbed 3.05% to $2.70 in after-hours trading on Thursday. The same report showed a smaller loss than analysts had forecast.

Exchange Revenue Nearly Halved as Retail Traders Pulled Back

Trading drove the revenue decline, while services revenue grew 7%. Exchange revenue fell 47% year over year to $13.4 million. The company tied the drop mainly to lower retail trading activity.

Platform volume came to $4.5 billion, down from $16.4 billion a year earlier. Quarter over quarter, however, exchange revenue rose 7%, and spot volume rose 18%. 

Gemini said institutional Zcash (ZEC) activity and affiliated market-making supported the volume gain.

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

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

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Gemini Cut Costs Faster Than Its Revenue Fell

While revenue shrank 19%, Gemini reduced its operating expenses by 30% to $119.9 million. That marked a third straight quarterly decline. Sales and marketing spending dropped 75% to $8.3 million.

The net loss narrowed 63% to $58.6 million. The loss per share came to $0.46, against the $0.58 analysts expected. Revenue, however, missed the $44.38 million estimate.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) showed an $11.6 million loss, versus $74 million in Q2. Lower card provisions and staff costs helped, 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 came after a weak regular session. Gemini stock closed Thursday at $2.62, down 3.68%.

Shares had already lost 75.2% this year through November 6, BeInCrypto noted in its Gemini earnings preview. They also fell after the Gemini Q2 earnings report.

Despite the 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.

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