TLDR
- Gemini reported a Q2 net loss of $107.7 million.
- Exchange revenue fell 38% to $12.5 million.
- Trading volume dropped to $3.8 billion from $11.3 billion a year earlier.
- Credit card revenue rose 231% to $16.2 million.
- Wall Street’s average GEMI price target remains above the latest market price.
Gemini Space Station stock turned lower in Friday premarket trading after the cryptocurrency exchange reported a $107.7 million second-quarter net loss. GEMI shares traded near $3.90 before the opening bell after closing Thursday at $4.30, up about 3% during regular trading.
Source: KnockOutStocks
The earnings report presented a mixed picture for Gemini. Total revenue climbed 37% year over year to $45.5 million, supported by credit cards, staking and other services. However, weaker cryptocurrency trading pushed exchange revenue down 38% as customers traded considerably less than a year earlier.
Gemini Q2 Loss Reaches $107.7 Million
Gemini reported a $107.7 million net loss for the quarter, improving from a $133.2 million loss during the same period in 2025. The loss amounted to $0.89 per share, while adjusted EBITDA came in at negative $74 million.
Operating expenses reached $122.4 million, up 24% from a year earlier, although expenses fell 15% from the previous quarter. Gemini said lower restructuring costs and reduced stock-based compensation helped bring quarterly spending down from $144.5 million in Q1.
The company also recorded a $16.1 million provision for credit losses connected to an identity fraud incident affecting part of its credit card portfolio. Gemini said it introduced additional fraud detection and account monitoring measures after identifying more affected accounts.
CEO Tyler Winklevoss acknowledged the remaining challenges, saying, “While we still have work to do as a company,” before pointing to efforts to reduce expenses and diversify revenue away from crypto trading.
Crypto Trading Volume Drops to $3.8 Billion
Gemini’s core exchange business remained under pressure as total trading volume dropped to $3.8 billion from $11.3 billion a year earlier. Exchange revenue fell to $12.5 million from $20.2 million, while overall transaction revenue decreased 15% to $17.8 million.
Other businesses recorded faster growth. Credit card revenue rose 231% to $16.2 million, while staking revenue increased 50% to $4 million. Prediction markets generated $500,000 as event contracts traded increased 93% from the previous quarter.
Monthly transacting users increased 11% to 580,000 despite the lower trading volume. Assets held on Gemini’s platform fell to $8.4 billion from $18.2 billion a year earlier, reflecting lower crypto prices and some institutional custody outflows.
GEMI Stock Forecast Points Above Current Price
Wall Street forecasts remain above GEMI’s latest market price despite the post-earnings decline. Nine analysts currently carry an average 12-month price target near $6.11, compared with Thursday’s $4.30 closing price.
Analyst forecasts range from $4 at the low end to $9 at the high end. The $9 target would require a substantial recovery from current levels, while the $4 forecast sits close to where GEMI traded during Friday’s premarket session.
Source: TipRanks
Gemini shares remain far below their September 2025 record of $45.89 and close to the 52-week low of $3.74. Investors are now weighing weaker exchange activity against growth in credit cards, staking and prediction markets as Gemini works to reduce its dependence on crypto trading fees.
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