Gemini Space Station reported a $107.7 million net loss for the second quarter of 2026, extending its run of quarterly losses as a sharp contraction in cryptocurrency trading volumes continued to pressure its core exchange business.
The loss narrowed 19% from $133.2 million a year earlier and improved slightly from Gemini’s $109.0 million loss in the first quarter. Revenue, however, climbed 37% year over year to $45.5 million from $33.3 million, reflecting rapid growth in businesses outside traditional crypto trading.
Gemini shares fell roughly 6% in after-hours trading following the August 13 results. The quarter underscores the challenge facing the company as it attempts to diversify from a transaction-fee-dependent crypto exchange into a broader financial markets platform spanning credit cards, prediction markets, equities and derivatives.
Trading Volume Collapses as Services Revenue Grows
Gemini’s spot trading volume fell 66% year over year to $3.8 billion from $11.3 billion, reflecting weaker cryptocurrency markets. Exchange revenue consequently dropped 38% to $12.5 million.
Overall transaction revenue declined 15% to $17.8 million, although stronger institutional activity partially offset the weakness. Over-the-counter revenue increased to $4.7 million from $600,000 a year earlier, while the company’s newer prediction-markets operation contributed $500,000.
The strongest growth came from services and interest income, which more than doubled to $26.0 million from roughly $12 million and represented approximately 57% of total quarterly revenue.
Credit-card revenue surged 231% to $16.2 million, while staking revenue increased 50% to $4.0 million. That growth brought its own costs. Transaction losses jumped to $20.1 million from $3.6 million a year earlier, driven principally by a $16.1 million credit-loss provision associated with an identity-fraud event involving the credit-card portfolio.
Gemini said the elevated provision was concentrated in a specific cohort rather than reflecting broader deterioration in credit quality. Managed credit-card receivables reached $219.6 million, compared with $93.5 million a year earlier.
Gemini Cuts Costs While Building Beyond Crypto
Gemini is simultaneously trying to reduce its expense base. Operating expenses fell 15% sequentially to $122.4 million following a February workforce reduction and exits from international markets. Salaries and compensation excluding stock-based compensation declined 20% year over year to $27.9 million.
Operating loss improved for a third consecutive quarter, although adjusted EBITDA remained deeply negative at $74.0 million, deteriorating from a $51.9 million loss a year earlier.
Gemini ended June with $188.6 million in cash and cash equivalents, down from $252.2 million at the end of 2025. It also received a $100 million Bitcoin-funded investment from Winklevoss Capital in May.
Meanwhile, assets on Gemini’s platform fell to $8.4 billion from $18.2 billion a year earlier, reflecting lower crypto valuations and selected institutional custody outflows.
The company is increasingly positioning itself beyond spot cryptocurrency trading. It launched commission-free U.S. stock trading in July, secured CFTC clearing authorization in April and activated its derivatives clearinghouse in August. Prediction-market volumes also reached monthly records throughout Q2.
Gemini’s results show why that diversification matters. Services are expanding rapidly, but the company remains heavily loss-making, while its traditional exchange business is being squeezed by dramatically lower trading activity.
For now, revenue diversification and cost reductions are improving parts of the business, but they have yet to provide a clear path back to profitability.
