Gemini Space Station (GEMI) Narrows Q3 Net Loss 63% to $58.6 Million

Net Loss Narrows 63% as Costs Fall 30%

Investors went into Gemini Space Station's third-quarter report asking whether a smaller exchange can still reward its shareholders, and the answer arrived in the cost line rather than the top line. The parent of the crypto exchange Gemini posted revenue of $40.9 million on November 12, down 19% from a year earlier, yet its stock climbed 3.05% to $2.70 in after-hours trading on Thursday, after the regular session had closed at $2.62, down 3.68%. Operating expenses fell 30% to $119.9 million, a third straight quarterly decline, and sales and marketing spending dropped 75% to $8.3 million. That carried the net loss down 63% to $58.6 million, with a loss per share of $0.46 against the $0.58 analysts had expected, even as revenue missed the $44.38 million estimate. A loss beat paired with a revenue miss is an unusual combination, and it points to where the quarter's work was actually done. Adjusted EBITDA, a gauge of operating profitability before interest, taxes, depreciation and amortization, showed an $11.6 million loss, an improvement from $74 million in Q2, helped by lower card provisions and staff costs along with a $50.8 million favorable swing in crypto-related results. The after-hours gain came against a rough backdrop: shares had lost 75.2% this year through November 6, leaving the bear market intact after the Q2 report had also knocked the stock lower. CEO Tyler Winklevoss put the burden on delivery in the company's third-quarter release: “We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time.”

Exchange Revenue Slides 47% While Card Revenue Climbs

The trading business carried most of the damage. Exchange revenue fell 47% year over year to $13.4 million, and the company tied the drop mainly to lighter retail activity, while services revenue grew 7%. Platform volume came to $4.5 billion, down from $16.4 billion a year earlier, a 73% slide in spot trading volume. The sequential picture was less severe: exchange revenue rose 7% and spot volume rose 18%, with the company crediting institutional Zcash (ZEC) activity and affiliated market-making for the gain. In other words, retail traders pulled back while institutional flows cushioned only part of the shortfall. Credit card revenue jumped 82% year over year to $15.5 million and now exceeds what the exchange itself generates. That growth carries rising credit risk: charge-offs climbed to $11.5 million from $3.4 million, an increase the company tied mostly 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. Cash and equivalents fell to $194.1 million from $252.2 million at the end of 2025, which means the cost cuts are drawing down a shrinking buffer rather than funding expansion. Prediction markets revenue reached $0.8 million, up 52% from the second quarter. The partnership with Apex Fintech Solutions remains a non-binding letter of intent, with no timeline disclosed for a binding agreement, and investors were set to hear more on the earnings call Friday at 8:30 a.m. ET.

Two trades are happening in the same quarter. Management bought a loss beat with a 30% expense cut, and the after-hours tape paid for it, but the revenue mix is tilting toward credit card income that comes with climbing charge-offs while the core exchange has shed roughly three quarters of its volume from a year earlier. Cash fell more than $58 million from the end of 2025, and that sets a clock on how long cost discipline can substitute for growth. For the improvement to stick past Friday's 8:30 a.m. ET call, the Apex letter of intent has to move toward something binding and card credit quality has to stabilize; otherwise the 63% loss narrowing reads as a one-time reset rather than a turn in the business.