Gemini Trims Q3 Loss to $58.6 Million While Revenue Slips 19%

Gemini Space Station (NASDAQ: $GEMI), the cryptocurrency exchange founded by Tyler and Cameron Winklevoss, reported a third-quarter net loss of $58.6 million on Thursday, a 63% decline from a year earlier, as lower operating expenses offset a drop in revenue.

The improvement was partly driven by a reversal in gains and losses on the company's cryptocurrency holdings. However, trading activity on the platform remained well below year-earlier levels.

According to the company's earnings release, the net loss was $0.46 per share, compared with $6.67 a share in the third quarter of 2025. Revenue fell 19% to $40.9 million from $50.6 million a year earlier and declined 10% from the second quarter.

Trading volume on Gemini's platform totaled $4.5 billion, down 73% from $16.4 billion a year earlier but up 18% from the previous quarter. The company attributed the sequential increase to institutional trading in Zcash (CRYPTO: $ZEC) and expanded market-making activity by an affiliate. Exchange revenue fell 47% to $13.4 million.

Operating expenses declined 30% to $119.9 million, marking the third consecutive quarterly decrease. The reduction was driven in part by lower compensation costs and a 75% cut in sales and marketing spending.

Gemini reported an operating loss of $79 million, compared with $120.8 million a year earlier and $76.9 million in the second quarter. Adjusted EBITDA showed a loss of $11.6 million, narrowing from a loss of $74 million in the previous quarter.

The company attributed the improvement in adjusted EBITDA to lower credit card loss provisions, reduced compensation expenses and a $50.8 million swing in results from cryptocurrency assets and related-party crypto loans. Those holdings and loans generated a $25.7 million gain, compared with a $25 million loss in the second quarter.

Services revenue and interest income accounted for 59% of net revenue, up from 47% a year earlier. Credit card revenue increased 82% to $15.5 million, while card charge-offs climbed to $11.5 million from $3.4 million, primarily involving accounts affected by a fraud incident disclosed by the company in the first quarter.

Gemini had 577,000 monthly transacting users during the quarter, down 2% from a year earlier. Assets on the platform declined to $13.4 billion from $21.3 billion over the same period.

Cash and cash equivalents totaled $194.1 million, compared with $252.2 million at the end of 2025.

“We expect to be judged on results,” CEO Tyler Winklevoss said in the release, adding that the company intends to earn the confidence of customers and shareholders one quarter at a time.

Shares of Gemini Space Station (NASDAQ: GEMI) were last trading at $2.62.