The Gemini earnings released on Thursday 12 November show a third-quarter net loss of $58.6 million, down from $159.5 million a year earlier, according to the results the exchange filed with the SEC after the US market close (21:30 UTC). Revenue fell 19% to $40.9 million. Total trading volume was $4.5 billion, 73% less than the $16.4 billion of the same quarter of 2025.
The quarterly report that followed overnight adds a detail the press release leaves out. On 10 November Gemini borrowed $35 million from Galaxy, pledging 740 bitcoin as collateral, with part of that bitcoin itself borrowed from the Winklevoss brothers’ fund. The company says its resources will cover its needs for at least the next 12 months.
The smaller loss comes mostly from spending cuts, and partly from the value of the crypto Gemini holds. Exchange revenue was $13.4 million, cash and equivalents fell to $194.1 million, and prediction markets, the product the company now puts first, earned $0.8 million in three months.
Investors were not convinced on Friday. GEMI traded at $2.545 at 17:39 UTC, down 2.9% on the day, after swinging between $2.37 and $2.86 during the session, according to Nasdaq data.
Gemini Q3 earnings in figures
The quarter ended on 30 September. The table compares it with the same quarter of 2025 and with the second quarter of 2026, using the press release and the earnings presentation.
| Item | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Total revenue | $40.9M | $50.6M | -19% (-10% vs Q2) |
| Exchange revenue | $13.4M | $25.2M | -47% (+7% vs Q2) |
| Total trading volume | $4.5B | $16.4B | -73% ($3.8B in Q2) |
| Services revenue | $21.3M | $19.9M | +7% (-10% vs Q2) |
| Prediction markets revenue | $0.8M | none (launched Dec 2025) | +52% vs Q2 ($0.5M) |
| Operating expenses | $119.9M | $171.4M | -30% (-2% vs Q2) |
| Net loss | $58.6M | $159.5M | -63% (-46% vs Q2) |
| Adjusted EBITDA (non-GAAP) | -$11.6M | -$52.4M | -$74.0M in Q2 |
| Monthly transacting users | 577,000 | 587,000 | -2% (-1% vs Q2) |
| Assets on platform | $13.4B | $21.3B | $8.4B in Q2 |
Over nine months, the net loss reached $275.3 million, against $442.0 million in the first nine months of 2025. The loss per share was $0.46, against $6.67 a year earlier, but that comparison says little: Gemini listed on Nasdaq in September 2025, and its weighted share count went from 23.9 million to 128.5 million.
Retail trading fell to $600 million, institutions picked up
Transaction revenue, the fees on trades, was $15.9 million, down 40% from a year earlier and 10% from the second quarter. Inside it, exchange revenue was $13.4 million, down 47% year on year but up 7% on the quarter.
The earnings presentation splits the volume. Retail customers traded $0.6 billion, 14% less than in the second quarter and 67% less than a year earlier. Institutions traded $3.9 billion, up 26% on the quarter. Cointelegraph, which reported the split on Friday, notes that retail volume was the lowest since the third quarter of 2023.
Retail still pays most of the bills. Retail exchange revenue was $9.9 million, down 56% on the year, against $3.5 million from institutions, which more than doubled on the quarter. Retail clients therefore brought in about 74% of exchange revenue with 13% of the volume.
The institutional rebound has a specific source. Gemini credits it to “increased institutional Zcash activity and expanded affiliated market-making”. Bitcoin volume fell 20% on the quarter to $1.6 billion, while coins other than bitcoin and ether rose 77% to $2.3 billion. About $1.2 billion of spot volume, or 26%, was trading between outside customers and Gemini’s own market maker, a subsidiary that started in the third quarter.
Over-the-counter revenue, the desk for large private trades, was $1.7 million: up 60% on a year earlier, but down 64% from $4.7 million in the second quarter.
Peers had a weak quarter too. Cointelegraph notes that Coinbase’s consumer spot volume fell 9% on the quarter to $23.4 billion, and that Robinhood’s crypto revenue dropped 55% year on year to $120 million while its event contracts revenue rose sixfold to $173 million. We covered that quarter in our piece on how prediction markets overtook crypto at Robinhood.
Where the loss went: costs, not revenue
Operating expenses were $119.9 million, 30% below the $171.4 million of a year earlier and 2% below the second quarter, the third quarterly fall in a row. “We intend to stay disciplined about where those dollars go,” chief executive Tyler Winklevoss said in the release.
Salaries and compensation were $56.4 million. The line rose 17% on the quarter because of $32.7 million of stock-based pay, up from $20.3 million after equity bonuses granted in July. Without the stock awards, cash compensation was $23.7 million, 36% less than a year earlier, which Gemini attributes to the job cuts it made in February 2026.
Sales and marketing fell 75% to $8.3 million. Brand and acquisition spending almost stopped, at $0.7 million. Technology cost $19.6 million, general and administrative costs $19.8 million, and transaction processing $5.3 million.
The operating loss was $79.0 million, against $120.8 million a year earlier but slightly worse than the $76.9 million of the second quarter. On Gemini’s adjusted measure, which strips out stock pay and some other items, the operating loss was $39.0 million, down 42% on the year and 21% on the quarter.
Gemini gave no revenue forecast. Its presentation only sets an expense outlook for the full year 2026: cash compensation down 15% to 20%, stock-based pay of $100 million to $105 million, technology plus general costs of $160 million to $170 million, and marketing, excluding rewards and promotions, at 7% to 10% of revenue. According to a MarketBeat summary of Friday’s call, the company expects a “measured increase” in marketing in the fourth quarter.
Crypto gains did part of the work on the net loss
The gap between the $79.0 million operating loss and the $58.6 million net loss comes mainly from one line: $20.4 million of other income. Most of it is crypto.
Gemini owns crypto on its balance sheet. It also borrowed crypto from related parties, loans it must repay in the same coins. When prices move, both sides move. In the third quarter, Gemini booked a $135.9 million gain on the crypto it holds and a $110.2 million loss on the crypto it owes, a net gain of $25.7 million. In the second quarter, the same lines had produced a net loss of $25.0 million.
The release calls the difference “a $50.8 million favorable swing”. It is a change in the value of assets and debts, not money earned from customers. Had those lines been flat, the quarterly loss would have been roughly $25.7 million larger, before any tax effect. Interest on the related-party loans also fell, to $3.2 million from $17.8 million a year earlier.
What adjusted EBITDA leaves out
Adjusted EBITDA is a measure companies define themselves. It removes interest, taxes, depreciation and items such as stock-based pay and restructuring costs. Gemini’s was a loss of $11.6 million, against $52.4 million a year earlier and $74.0 million in the second quarter. The release links the improvement to lower card provisions, lower compensation and the same crypto swing. It is not a measure defined by US accounting rules, and it is the most flattering figure in the release.
The credit card earns more than the exchange, and costs more too
Services revenue was $21.3 million, up 7% on a year earlier. With $2.0 million of interest income, services made up 59% of net revenue, against 47% a year earlier. The biggest part is the Gemini credit card, which pays rewards in crypto: $15.5 million of revenue, up 82% year on year.
Staking brought $4.2 million, down 29%. Advisory fees fell to $0.6 million from $2.7 million in the second quarter, because the period over which Gemini recognised revenue from a warrant ended in July.
The card has a cost. Transaction losses were $10.6 million, about half the $20.1 million of the second quarter, including a $9.2 million card provision. Charge-offs, the debts written off as lost, jumped to $11.5 million from $3.4 million. Gemini describes them as accelerated charge-offs linked to its “previously disclosed first-quarter fraud event”. Managed card receivables were $202.2 million, up from $150.6 million a year earlier, and non-fraud delinquencies of 30 days or more were 3.4%, against 3.3% in the second quarter.
On Friday’s call, interim chief financial officer Danijela Stojanovic said card account growth had been broadly flat, held back in part by “available funding capacity”, according to MarketBeat.
Prediction markets: up 52%, still under $1 million
Prediction markets revenue was $796,000, up from $524,000 in the second quarter, net of the rebates Gemini pays to market makers and takers. That is about 2% of net revenue for the product the Winklevoss brothers present as the core of what they call Gemini 2.0.
The usage numbers are larger. More than 350 million event contracts have been traded and more than 35,000 people have traded predictions since the December 2025 launch, according to the presentation. For October, Gemini reports average daily traders about 50% above the third-quarter average, monthly retention at its highest since launch, and nearly a third of new prediction traders new to Gemini. Its own clearinghouse now clears every Gemini event contract.
The distribution deal Gemini points to is not signed. On 24 August it agreed a non-binding letter of intent with Apex Fintech Solutions that would make Gemini Titan the exclusive regulated venue for crypto event contracts offered through Apex’s futures broker. Definitive documents are still needed, and Gemini says it is talking to other distribution and clearing partners.
“Gemini 2.0 is our bet that the platforms that last will be the ones that own the regulated infrastructure underneath,” president Cameron Winklevoss said in the release. On the call, asked about the regulatory risk to sports contracts, Tyler Winklevoss said Gemini expects its federal licensing position to prevail, and that the product “could continue without” sports, MarketBeat reported. Our guide to how prediction markets work explains the contracts and the fight with the states.
$194 million of cash, then a $35 million loan from Galaxy
Cash and cash equivalents were $194.1 million on 30 September, down from $252.2 million at the end of 2025, with another $89.4 million of restricted cash. Operating activities used $166.9 million of cash in the first nine months of the year.
On the other side, loans from related parties stood at $367.2 million, down from $403.9 million in December. Gemini also carried $153.2 million of funding debt, the Ripple facility that finances card receivables, and $75.5 million of third-party loans. Shareholders’ equity fell to $442.5 million from $540.9 million, and the accumulated deficit reached $2.32 billion.
The 10-Q, filed at 00:01 UTC on Friday, fills in what the release did not say. Gemini states that its cash, the remaining bitcoin from a May private placement, its borrowing capacity and its lower cost base will be enough for its working capital needs for at least the next 12 months.
That private placement was made with Winklevoss Capital Fund. On 14 May the fund bought 7,142,857 Class A shares at $14.00 each, paying $100 million in about 1,258 bitcoin. Gemini sold part of that bitcoin to fund operations and held 294 of them, worth $24.6 million, on 30 September. The shares now trade below $3, and on 14 October Gemini registered them for possible resale by the fund.
The Galaxy loan came after the quarter ended. Gemini pledged 740 bitcoin, then valued at $54.5 million, for $35.0 million in cash at 7.5% a year, with no fixed maturity. To post that collateral it borrowed 670 bitcoin from Winklevoss Capital Fund at 4.0%, and may defer that interest for up to a year. A $100 million shelf registration, effective since 14 October, also lets Gemini sell new securities; none had been sold when the 10-Q was filed.
Users flat, assets back up with prices
Monthly transacting users were 577,000, down from 587,000 a year earlier and 580,000 in the second quarter. Assets held on the platform were $13.4 billion, against $21.3 billion a year earlier and $8.4 billion at the end of June. Gemini explains the yearly fall by “lower crypto asset valuations” and by net outflows from some institutional custody clients.
No mention of the KAST sale
The release mentions Europe only once, to recall the 5 February plan to wind down operations in the UK, the EU, other European countries and Australia, whose costs are left out of adjusted EBITDA. The 10-Q adds that Gemini handed its London office lease to another firm on 21 October. Neither document mentions KAST. On Thursday Coindaro reported that Gemini is said to be selling its UK and EU units to KAST for under $10 million. European readers have no Gemini service to use; our Gemini exchange review sets out what the platform offers in the US.
GEMI stock after the results
The shares were weak before the release. On 20 October they closed at a record low of $3.14, 89% below the IPO price, and they have fallen further since: Nasdaq data show a 52-week low of $2.31.
GEMI closed Thursday’s regular session at $2.62, down 3.7%, just before the release. On Friday it traded between $2.37 and $2.86, and stood at $2.545 at 17:39 UTC, still above that 52-week low. Coindaro found no new broker note on the results by then.
“We expect to be judged on results,” Tyler Winklevoss said in the release.
What comes next for Gemini
Tyler Winklevoss told analysts that Gemini will set out its 2027 priorities, and the measures it will use to track them, on its next earnings call, MarketBeat reported. The full call transcript sits behind a paywall, and Coindaro relied on that summary for the call remarks.
The Apex agreement still has no signed contract, and the fourth-quarter revenue line will show whether October’s prediction market usage turns into more than $0.8 million a quarter. The Galaxy loan is the other thing to watch: the 670 bitcoin borrowed from the brothers’ fund are held, according to the 10-Q, as a reserve for potential future collateral requirements.