Gemini posts $107.7M Q2 loss as spot volume drops 66%
Gemini Space Station reported a $107.7 million net loss for the second quarter ended June 30, extending its run to four consecutive quarterly losses since its September 2025 Nasdaq listing.
- Gemini reported a $107.7 million Q2 net loss, its fourth consecutive quarterly loss since IPO.
- Total revenue rose 37% year over year to $45.5 million, led by expanding services revenue.
- Spot trading volume fell 66% year over year to $3.8 billion amid weaker crypto markets.
- Credit card revenue jumped 231% to $16.2 million while total transaction losses reached $20.1 million.
- Assets on platform declined 54% to $8.4 billion, reflecting valuations and select institutional custody outflows.
Revenue rose 37% year over year to $45.5 million, but the exchange’s core spot trading business weakened sharply as total volume fell to $3.8 billion from $11.3 billion a year earlier.
The company’s Aug. 13 SEC filing showed the loss narrowed 19% from $133.2 million in Q2 2025. Gemini’s operating loss was $76.9 million, improving 18% from the first quarter, while operating expenses declined 15% sequentially to $122.4 million. The reduction followed February workforce cuts and exits from several international markets.
Gemini Q2 revenue grew as exchange trading contracted
Transaction revenue declined 15% year over year to $17.8 million. Exchange revenue fell 38% to $12.5 million as retail and institutional activity slowed. Retail spot volume dropped 53% to $700 million, while institutional volume fell 68% to $3.1 billion.
Q2 '26 earnings are in
— Gemini (@Gemini) August 13, 2026
Total revenue grew 37% YoY to $45.5M, with a 149% YoY increase in services revenue
This growth came during a 38% drop in exchange transaction revenue due to a soft crypto market, highlighting our efforts to diversify revenue and cut operating expenses. pic.twitter.com/cjm6ATSsAS
The weaker exchange business was partly offset by other activities. Services revenue rose 149% to $23.5 million. Credit card revenue jumped 231% to $16.2 million, staking revenue increased 50% to $4 million, and over the counter revenue rose to $4.7 million from $611,000. Gemini’s first quarter results had already shown a growing reliance on credit cards and other non exchange products, as crypto.news reported.
Credit losses and crypto marks kept the loss elevated
The company recorded $20.1 million in transaction losses, up from $3.6 million a year earlier. The total included a $16.1 million provision for expected credit losses on its credit card portfolio. Gemini said about $10 million of the Q2 provision related to accounts originated during the first quarter and associated with identified fraud activity.
The company said it added fraud detection and account monitoring controls. Management said the elevated provision was concentrated in the affected cohort and “does not reflect broad based deterioration” in the credit portfolio. That remains Gemini management’s assessment. Separately, the company recorded a $60.7 million realized and unrealized loss on crypto assets and receivables, partly offset by a $35.7 million gain on related party crypto loans.
Gemini pushes stocks and prediction markets as assets fall
Assets on Gemini’s platform fell 54% year over year to $8.4 billion from $18.2 billion. The company attributed the decline to lower crypto valuations and select institutional custody outflows. Monthly transacting users rose 11% to 580,000 from a year earlier, although the figure slipped 2% from the first quarter.
The company is trying to reduce its dependence on spot crypto fees. Prediction markets generated $524,000 in Q2 revenue, while event contracts traded increased 93% from the first quarter and cumulative contracts surpassed 225 million. The company also launched commission free stock trading for eligible U.S. customers in July, expanding its push beyond crypto trading, as crypto.news reported.
What happens next for Gemini
The company’s U.S. expansion is supported by regulated derivatives infrastructure. The CFTC lists Gemini Titan as a designated contract market, while its registry shows Gemini Olympus became a registered derivatives clearing organization on April 29. Gemini said its clearinghouse went live on Aug. 4, allowing it to settle its own prediction contracts and explore additional U.S. derivatives products.
Management is scheduled to discuss the quarter on an earnings call at 8:30 a.m. ET on Aug. 14. Investors will be watching whether services growth can offset weaker spot trading and whether credit losses normalize. The company also remains a defendant in an investor class action over its IPO disclosures and strategy shift. The federal docket shows the case remains active.