TLDR
- Gemini stock fell 7% to $4.00 in after-hours trading after reporting a Q2 net loss of $107.7 million
- Revenue grew 37% to $45.5 million, with credit card revenue surging 231% to $16.2 million
- Exchange revenue dropped 38% to $12.5 million as trading volume fell from $11.3 billion to $3.8 billion
- A $16.1 million credit card fraud provision pushed transaction losses to $20.1 million
- Operating expenses fell 15% to $122.4 million following a 30% staff cut in February
Gemini Space Station (GEMI) stock fell 7% to $4.00 in after-hours trading Thursday after the crypto exchange posted a second-quarter net loss of $107.7 million. The stock had actually closed the regular session up 3.12% at $4.30 before earnings hit.
Gemini Space Station, Inc., GEMI
The net loss narrowed 19% from $133.2 million a year earlier. But the results were enough to send the stock back near its all-time lows, below $4.
Revenue came in at $45.5 million, up 37% from $33.3 million in the same quarter last year. That growth story is real, but so are the headwinds.
Crypto Exchange Gemini Posts $107.7M Q2 Net Loss, Its Fourth Consecutive Quarterly Loss
According to Bloomberg, crypto exchange Gemini reported a second-quarter net loss of $107.7 million, marking its fourth consecutive quarterly loss, while revenue rose 37% year over year to… pic.twitter.com/edxIvhvjZV
— Wu Blockchain (@WuBlockchain) August 14, 2026
Credit cards are carrying a lot of the weight right now. Credit card revenue jumped 231% to $16.2 million. Staking revenue grew 50% to $4 million. OTC revenue climbed to $4.7 million from just $0.6 million a year ago on heavier institutional activity.
Services revenue and interest income combined rose 117% to $26.0 million. It is a genuine bright spot in an otherwise messy quarter.
The core crypto exchange business, though, is still shrinking. Exchange revenue fell 38% to $12.5 million as total trading volume dropped to $3.8 billion from $11.3 billion a year earlier.
Fraud Charge Bites Hard
Transaction losses surged to $20.1 million from $3.6 million. The main culprit was a $16.1 million provision for credit losses tied to identity fraud on its credit card portfolio, identified earlier in 2026.
That charge undercut what was otherwise a decent cost-cutting story. Operating expenses dropped 15% sequentially to $122.4 million from $144.5 million, driven by February’s 30% headcount reduction and a pullback from international markets.
Operating loss came in at $76.9 million for the quarter.
Net loss per share was $0.89, a dramatic improvement from $27.08 a year earlier. Assets on the platform declined to $8.4 billion from $18.2 billion, largely due to bitcoin losing roughly 50% of its value.
Expanding Beyond Crypto
Prediction market volume rose 93% quarter over quarter, with cumulative contracts now surpassing 225 million. Revenue from prediction markets was $500,000, up from $400,000 following its December launch.
Gemini activated its derivatives clearinghouse earlier this month after getting CFTC approval in April. It launched commission-free U.S. stock trading in July.
“The Gemini platform has changed more in the past nine months than it did in the past decade,” President Cameron Winklevoss said.
CEO Tyler Winklevoss acknowledged the road ahead. “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,” he said.
Monthly transacting users grew 11% year over year.
For context, Q1 2026 results told a different story. Gemini reported $50.3 million in revenue and a $109 million loss that quarter, and investors sent the stock higher.
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