Gemini Space Station, Inc. (GEMI): Results of Operations and Financial Condition
Gemini Space Station, Inc. (GEMI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Gemini Reports Second Quarter 2026 Results Gemini increased total revenue 37% YoY in Q2 2026, with a 149% YOY increase in services revenue highlighting increasingly diversified revenue amid a 38% YOY drop in exchange transaction revenue as crypto market remains soft NEW YORK, Aug
How this was made
The 30-second read
Why it matters
Traders can reassess GEMI’s revenue durability under soft crypto volumes, and separately evaluate credit-card portfolio risk after an identity fraud event drove a large CECL provision.
Market read
Q2 results show strong services growth and sequential operating loss improvement, but continued exchange revenue decline and a large fraud-related credit loss provision.
What to watch
The filing notes commission-free stock trading added in July and a May 2026 bitcoin private placement affecting adjusted EBITDA; both can influence investor perception of growth durability and mark-to-market volatility.
Gemini increased total revenue 37% YoY in Q2 2026, with a 149% YOY increase in services revenue highlighting increasingly diversified revenue amid a 38% YOY drop in exchange transaction revenue as crypto market remains soft
Total revenue grew 37% year-over-year, led by services revenue, while exchange revenue declined 38%, operating expenses increased 24%, transaction losses rose to $20.1 million, and Adjusted EBITDA declined to $(74.0) million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $45.5 million | – | 37% |
| Net revenueGAAP | $43,704 | – | – |
| Other revenueGAAP | $1,771 | – | – |
| Total operating expensesGAAP | $122.4 million | 15% sequentially | 24% |
| Salaries and compensationGAAP | $48.2 million | – | 31% |
| Stock-based compensationGAAP | $20.3 million | – | – |
| Salaries and compensation without stock-based compensationother | $27.9 million | – | decreased by 20% |
| Technology expensesGAAP | $18.8 million | – | remained relatively flat year-over-year |
| General and administrative expensesGAAP | $20.6 million | – | 7% |
| Transaction lossesGAAP | $20.1 million | – | increased |
| Sales and marketingGAAP | $8.8 million | – | decreased 45% |
| Transaction processingGAAP | $5,885 | – | – |
| Operating lossGAAP | $(76,941) | improved 18% sequentially | – |
| Net lossGAAP | $107.7 million | – | decreased 19% |
| Net loss per share, basicGAAP | $(0.89) | – | – |
| Net loss per share, dilutedGAAP | $(0.89) | – | – |
| Adjusted EBITDAnon-GAAP | $(74,034) | – | – |
| Monthly Transacting Usersother | 580,000 | – | 11% |
| Assets on Platformother | $8.4 billion | – | – |
| Total trading volumeother | $3.8 billion | – | – |
| Managed credit card receivablesother | $219.6 million | – | – |
| Event contracts tradedother | >225 million | up 93% quarter-over-quarter | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Transaction revenueDriven by a significant decline in crypto trading volumes amid challenging crypto market conditions. | $17.8 million | – | dropped 15% year-over-year |
| Exchange revenueReflected a softer crypto market, with total trading volume declining to $3.8 billion from $11.3 billion in Q2 2025. | $12.5 million | – | decreased 38% year-over-year |
| OTC revenueHigher institutional client activity, including several larger trades during the quarter and continued expansion of the electronic OTC platform. | $4.7 million | – | increased |
| Prediction markets revenueA new, small and growing segment of transaction revenue. | $0.5 million | – | – |
| Services revenue and interest incomeDriven primarily by credit card and staking revenue. | $26.0 million | – | increased 117% year-over-year |
| Credit card revenuePrimarily driven by significant year over year growth in the Gemini Credit Card user base. | $16.2 million | – | increased 231% year-over-year |
| Staking revenueReflected continued expansion of staking offerings, including building out in-house staking validator capabilities. | $4.0 million | – | increased 50% year-over-year |
| Advisory fee revenueReflected an advisory services agreement with a strategic customer entered into in Q3 2025. | $2.7 million | – | – |
| Custodial fee revenueThe decline was due in part to a decrease in crypto asset prices and select institutional custody net outflows this year. | $0.6 million | – | dropping from $1.9 million in Q2 2025 |
| Interest incomeNo further driver reported. | $2.4 million | – | roughly flat from Q2 2025 |
What drove it
- Services revenue led growth, with services revenue increasing 149% year-over-year from $9.5 million to $23.5 million.
- Credit card revenue increased 231% year-over-year to $16.2 million, driven by significant year over year growth in the Gemini Credit Card user base.
- OTC revenue increased to $4.7 million from $0.6 million in Q2 2025, supported by higher institutional activity and several larger trades.
- Total operating expenses declined 15% sequentially from the first quarter of 2026, reflecting lower restructuring costs, reduced stock-based compensation, and expense discipline.
- Sales and marketing declined 45% year-over-year to $8.8 million, including a 99% decline in marketing acquisition and brand spend to $0.1 million.
- Gemini launched commission-free stock trading on July 7, 2026, and its derivatives clearinghouse went live on August 4, 2026.
Concerns
- Exchange revenue decreased 38% year-over-year to $12.5 million amid softer crypto market conditions.
- Total trading volume declined to $3.8 billion from $11.3 billion in Q2 2025.
- Transaction losses increased from $3.6 million to $20.1 million, primarily driven by a $16.1 million provision for credit losses on the credit card portfolio.
- The credit-loss provision was impacted by an identity fraud event identified earlier in 2026.
- Custodial fee revenue dropped from $1.9 million in Q2 2025 to $0.6 million, due in part to lower crypto asset prices and select institutional custody net outflows.
- Assets on Platform were $8.4 billion as of Q2 2026, compared to $18.2 billion as of Q2 2025.
- Adjusted EBITDA decreased to $(74.0) million, compared to $(51.9) million in Q2 2025, primarily attributable to market-driven realized and unrealized losses on bitcoin received in connection with the May 2026 private placement.
What to watch
- Whether services revenue, particularly credit card and staking revenue, continues to offset crypto-market-sensitive exchange revenue.
- Performance of the credit card portfolio and the effectiveness of additional fraud detection and account monitoring measures.
- The extent to which the identified fraud-related cohort remains concentrated rather than reflecting broad-based deterioration in the underlying credit portfolio.
- Adoption and monetization of commission-free stock trading, Gemini Predictions, and the derivatives clearinghouse.
- Crypto market conditions, trading volume, crypto asset valuations, and institutional custody flows.
Balance sheet and cash flow
- Cash and cash equivalents totaled $188.6 million, compared with $252.2 million in Q4 2025.
- Restricted cash and cash equivalents were $103,506 as of June 30, 2026, compared with $115,279 as of December 31, 2025.
- Customer custodial funds were $454,717 as of June 30, 2026, compared with $527,354 as of December 31, 2025.
- Crypto assets held were $331,048 as of June 30, 2026, compared with $439,622 as of December 31, 2025.
- Credit card receivables pledged, net were $181,994 as of June 30, 2026, compared with $188,754 as of December 31, 2025.
- Third party loans were $75,016 as of June 30, 2026, compared with $75,151 as of December 31, 2025.
- Related party loans were $258,765 as of June 30, 2026, compared with $403,931 as of December 31, 2025.
- Funding debt was $147,382 as of June 30, 2026, compared with $154,374 as of December 31, 2025.
- Net cash used in operating activities was $(105,877) for the six months ended June 30, 2026, compared with $(18,528) for the six months ended June 30, 2025.
- Net cash provided by investing activities was $38,498 for the six months ended June 30, 2026, compared with $45,623 for the six months ended June 30, 2025.
- Net cash used in financing activities was $(80,628) for the six months ended June 30, 2026, compared with $(76,062) for the six months ended June 30, 2025.
- Net decrease in cash, cash equivalents, restricted cash and cash equivalents was $(148,007) for the six months ended June 30, 2026, compared with $(48,967) for the six months ended June 30, 2025.
Analysis
Gemini reported $45.5 million of total revenue, up 37% year-over-year from $33.3 million. Growth was driven by services revenue, which increased 149% year-over-year from $9.5 million to $23.5 million. Credit card revenue increased 231% year-over-year to $16.2 million and staking revenue increased 50% year-over-year to $4.0 million. OTC revenue also increased to $4.7 million from $0.6 million in Q2 2025, supported by institutional activity and several larger trades.
The revenue mix shifted away from core exchange activity. Transaction revenue dropped 15% year-over-year from $20.8 million to $17.8 million, and exchange revenue decreased 38% to $12.5 million. Total trading volume declined to $3.8 billion from $11.3 billion in Q2 2025. Assets on Platform fell to $8.4 billion from $18.2 billion, which the company attributed to lower crypto asset valuations and select institutional custody asset outflows. Custodial fee revenue declined to $0.6 million from $1.9 million in Q2 2025.
Cost optimization improved sequential expense performance, but year-over-year costs remained higher. Total operating expenses were $122.4 million, up 24% year-over-year but down 15% sequentially from $144.5 million in the first quarter of 2026. The sequential reduction reflected lower restructuring costs, reduced stock-based compensation, and expense discipline. Sales and marketing declined 45% year-over-year to $8.8 million, while salaries and compensation increased 31% year-over-year to $48.2 million, including $20.3 million of stock-based compensation.
The principal operating issue was credit performance. Transaction losses increased to $20.1 million from $3.6 million, primarily due to a $16.1 million provision for credit losses on the credit card portfolio. Gemini tied the increase to an identity fraud event and the migration of affected accounts from the Q1 origination cohort into later-stage delinquency buckets. Managed credit card receivables grew to $219.6 million from $93.5 million a year ago, increasing the importance of the company's assertion that elevated losses are concentrated in the identified fraud-related cohort.
Operating loss improved 18% sequentially and marked the third consecutive quarter of improvement, but net loss was $107.7 million and Adjusted EBITDA was $(74.0) million. Adjusted EBITDA declined from $(51.9) million in Q2 2025, primarily due to realized and unrealized losses on bitcoin received in the May 2026 private placement. Cash and cash equivalents totaled $188.6 million, compared with $252.2 million in Q4 2025, while net cash used in operating activities was $(105,877) for the six months ended June 30, 2026.
The release did not provide financial guidance. Product expansion continued with commission-free U.S. stock trading launched on July 7, 2026, the derivatives clearinghouse going live on August 4, 2026, and record monthly Gemini Predictions volume during each month of the second quarter. These initiatives broaden the platform, but the reported quarter still shows dependence on services growth to offset weaker exchange activity and a need to contain credit-card losses.
Management, verbatim
While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue.
Tyler Winklevoss, CEO of Gemini
Despite crypto market headwinds, we’re making significant strides towards building a more resilient company by developing multiple paths to revenue that are less sensitive to crypto market forces and reducing operating expenses.
Tyler Winklevoss, CEO of Gemini
The Gemini platform has changed more in the past nine months than it did in the past decade, most recently with the addition of commission-free stock trading in July.
Cameron Winklevoss, President of Gemini
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-quarter total revenue
- GAAP gross margin
- Non-GAAP gross margin
- GAAP operating income
- Non-GAAP operating income
- Non-GAAP net income
- Non-GAAP EPS
- Free cash flow
- Share repurchases
- Dividends
- Lifetime Transacting Users
- Card Sign-Ups
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SEC Form 8-K Item 2.02 with an attached earnings release for Gemini Space Station, Inc. covering the quarter ended June 30, 2026.
Ticker impact
Gemini reported Q2 2026 results, with total revenue up 37% YoY to $45.5M while exchange revenue fell 38% YoY to $12.5M.
Near-term trading likely hinges on whether investors view services growth and cost cuts as durable versus the credit-loss/fraud risk and ongoing exchange weakness.
The filing provides multiple decision-relevant datapoints: revenue mix shift, sequential expense improvement, and a specific driver for transaction losses (a $16.1M CECL provision tied to an identity fraud event).
Market effects
Highlights how crypto-market softness is pressuring exchange revenue while broker-like and services lines (credit card, staking) can partially offset.
No clear regional transmission beyond US-listed crypto/fintech sentiment.
Limited; primarily company-specific results tied to crypto volumes and credit-card underwriting outcomes.
Counterpoint
Services growth may be more cyclical than it appears, and the elevated credit-loss provision could signal broader underwriting stress despite management’s cohort concentration claim.
Key entities
- companyGemini Space Station, Inc.
NASDAQ-listed crypto and markets platform reporting Q2 2026 financial results and drivers of revenue and losses.
- executiveTyler Winklevoss
CEO quoted on expense reduction and revenue diversification efforts.
- executiveCameron Winklevoss
President quoted on platform expansion including commission-free stock trading in July.
