Gemini Space Station, Inc. (ticker: GEMI) posted a 52 % quarter-on-quarter increase in revenue for Q3 2025, yet its shares fell sharply as the company continued to show heavy net losses.
Key Takeaways:
- Gemini reported approximately $50.6 million in Q3 revenue, up about 52 % from the prior quarter.
- Gemini reported a net loss of $159.5 million ($6.67 per share), missing analyst expectations for a smaller $3.24 loss.
- Stock fell over 10% in after-hours trading, hitting a record low below $15 despite the top-line beat.
On its latest update on X (formerly Twitter) showing their Q3 highlights, Gemini, a U.S.-based crypto exchange, reported third-quarter revenue of roughly $50.6 million, up 52% from the prior quarter’s $33.3 million. Transaction-based revenue reached $26.3 million, while services revenue, driven by staking, crypto wallet, and custody businesses, soared 111% to $19.9 million, which shows the firm’s push to diversify beyond trading.
The company’s focus on expanding payment and credit solutions contributed to stronger performance in non-trading income. Its credit card product alone processed over $350 million in transaction volume during Q3, doubling from the previous quarter.
Losses Deepen Despite Stronger Top Line
Despite the revenue acceleration, Gemini’s losses widened considerably. The exchange posted a net loss of $159.5 million, or $6.67 per share, compared to analyst expectations of a $3.24 loss. Adjusted EBITDA came in at –$52.4 million, underscoring continued operational inefficiencies. Crypto news outlets including Cointelegraph reported this data citing crypto exchange’s Q3 report, while highlighting the speculation on its aim of becoming a “super app.”
Operating expenses ballooned to $171.4 million, largely attributed to IPO-related stock compensation and expanded marketing. Analysts have flagged this as a structural concern that could weigh on profitability through 2026.
Stock Recovers Amid Earnings‑Led Volatility
Following the release of earnings, Gemini’s stock plunged more than 10% in after-hours trading, extending a week-long decline that pushed shares below $15, recording a new post-IPO low.
At the time of writing (8:30AM UTC), TradingView’s real-time market data shows GEMI shares were trading around $16.84, reflecting a 4.08% price uptick over the past 24 hours.
While the company’s third‑quarter earnings beat expectations in terms of revenue, the heavy net loss created a bifurcated response: investor optimism about growth in services revenue is tempered by concerns over profitability.
At the same time, the broader trend remains cautious: the 52‑week high remains around US $45.89 and the low near US $15.02, positioning the current level close to the lower bound of that range.
Diversification Push Gain Traction
Gemini’s management highlighted growth in its DeFi-linked and custodial products as signs of resilience. Its recently launched self-custody crypto wallet gained early traction, while expansion into Australia and regulatory progress under Europe’s MiCA framework signal the company’s ambition to strengthen its global footprint.
The exchange’s service diversification is seen as a strategic transition away from reliance on trading volume, which is an increasingly volatile revenue source amid fluctuating crypto market conditions.
What’s Next for Gemini?
Gemini’s Q3 results highlight the potential of its services-driven model, but converting revenue growth into profit remains a key challenge. Analysts expect the company to focus on cost control and operational efficiency in upcoming quarters.
For crypto investors, the report sends mixed signals: expanding staking, custody, and credit services indicate growth, yet the deep losses underscore the risks of running a public crypto exchange in a volatile market. Sustained investor confidence will likely hinge on whether Gemini can scale its diversified offerings while reining in expenses.
Summary
Gemini reported Q3 revenue of $50.6M, up 52% quarter-over-quarter, but a widened net loss of $159.5M sent shares below $16, leaving investors torn between services-driven growth and concerns about profitability.
