Gemini Q2 Revenue Rises Strongly Despite $107.7M Loss

TL;DR

• Revenue Surge: Gemini posted 37% year‑over‑year revenue growth to $45.5 million, driven by strong services expansion.
• Fraud Impact: The platform recorded $20.1 million in transaction losses due to a concentrated identity fraud event in its credit card portfolio.
• Cost Measures: Gemini reduced sequential operating expenses by 15% while continuing to diversify revenue beyond crypto trading.
  

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Gemini delivered a solid revenue jump in the second quarter, even as weakened trading activity and a sharp rise in credit‑related losses pushed the company to a $107.7 million net loss. The crypto and markets platform reported that total revenue climbed 37% year‑over‑year to $45.5 million, showing meaningful traction in services despite a softer trading environment.

Revenue Growth Driven by Services Expansion

Gemini said exchange revenue fell 38% to $12.5 million as trading volume dropped to $3.8 billion from $11.3 billion. The downturn reflected broader crypto market pressure, but Gemini offset part of that decline with strong services momentum. Services revenue surged 149% to $23.5 million, powered by a 231% increase in credit card revenue to $16.2 million and a 50% rise in staking revenue to $4 million. Including interest income, services revenue totaled $26 million.

The company highlighted continued growth in its credit card user base and expanding staking capabilities. Gemini also reported advisory fee revenue of $2.7 million and custodial fee revenue of $0.6 million, with the latter declining due to lower crypto prices and institutional outflows. OTC revenue rose sharply to $4.7 million from $0.6 million, supported by larger institutional trades and expansion of its electronic OTC platform.

Losses, Fraud Impact and Cost Controls

Transaction losses increased significantly to $20.1 million from $3.6 million, driven by a $16.1 million provision for credit losses tied to an identity fraud event affecting the credit card portfolio. Gemini said the elevated provision was concentrated within the impacted cohort and did not signal broader deterioration.

Managed credit card receivables grew to $219.6 million from $93.5 million a year earlier. Operating expenses rose 24% year‑over‑year to $122.4 million, though they declined 15% from the first quarter as Gemini continued cost‑cutting measures. Salaries and compensation totaled $48.2 million, including $20.3 million in stock‑based compensation.

Sales and marketing dropped 45% year‑over‑year to $8.8 million, reflecting reduced discretionary spending. Gemini executives said the platform is evolving rapidly, with new offerings such as commission‑free stock trading introduced in July. Despite market headwinds, Gemini emphasized its push toward diversified revenue streams and improved operating leverage.