Gemini Cuts Q3 Net Loss 63% to $58.6 Million as Costs Fall Faster Than Revenue

Gemini Space Station cut its net loss 63% year over year in the third quarter, to $58.6 million, as operating expenses fell far faster than revenue and marks on its crypto holdings swung sharply positive.

The numbers landed in the company's quarterly disclosure. Revenue declined 19% to $40.9 million, from $50.6 million a year earlier. Operating expenses dropped 30% to $119.9 million. A year ago the net loss stood at $159.5 million. Loss per share narrowed to $0.46, from $6.67.

CEO Tyler Winklevoss kept the framing blunt. "We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time," he said.

What moved the adjusted EBITDA number?

The adjusted EBITDA loss came in at $11.6 million, down from $74 million in the second quarter. Most of that improvement traces to one line item: marks on crypto holdings and crypto loans from related parties flipped from a $25 million loss in Q2 to a $25.7 million gain in Q3. That is a $50.8 million swing in a single quarter.

Gemini also credited smaller credit card loss provisions and lower employee compensation for the narrower adjusted loss.

The gap between the two measures matters. The GAAP operating loss actually widened to $79 million, from $76.9 million in Q2. A $12.4 million increase in stock-based compensation — tied to annual equity bonuses recognized in July — and softer revenue outweighed a $14.9 million reduction in other operating expenses. The adjusted picture flatters the quarter; the operating picture does not.

Where is the trading business heading?

Platform trading volume reached $4.5 billion, up 18% from $3.8 billion in Q2 but down 73% from $16.4 billion a year earlier. Gemini attributed the sequential rise to more institutional trading in Zcash (ZEC) and expanded market-making by an affiliate.

One detail deserves attention. About $1.2 billion, or 26% of spot volume, came from trades between outside customers and Gemini's own market maker. That share shapes how investors should read the volume recovery, since internal affiliate flow is not the same as pure organic demand.

Revenue mix is shifting too. Exchange activity brought in $13.4 million, a 47% decline. Services revenue and interest income made up 59% of net revenue, up from 47% a year earlier. The exchange is becoming less of an exchange, operationally speaking, and more of a financial services shop.

What does this change for the card business?

Credit card revenue jumped 82% to $15.5 million. But card charge-offs hit $11.5 million, and Gemini linked most of them to accounts tied to a fraud event it disclosed in Q1. The card line is growing fast while still absorbing the aftershock of that incident.

The balance sheet tightened over the period. Gemini held $194.1 million in cash and cash equivalents on Sept. 30, down from $252.2 million at year-end 2025 — roughly $58 million consumed in nine months.

That burn rate sets the clock. At the current pace, cost discipline and the growth of services revenue need to keep outpacing the decline in exchange fees before the cash cushion becomes the story. The next quarterly filing will show whether the Q3 momentum — narrower losses, positive crypto marks, rising card income — holds through year-end.