Gemini’s Q3 Net Loss Falls 63%; Crypto Marks Narrow Adjusted EBITDA Loss

Gemini Space Station cut its net loss 63% year over year in Q3 to $58.6 million as operating expenses fell faster than revenue, while crypto marks helped reduce its adjusted EBITDA loss from the prior quarter.

Revenue dropped 19% to $40.9 million from $50.6 million a year earlier. Operating expenses declined 30% to $119.9 million. The net loss was $159.5 million in the same quarter a year earlier, and loss per share fell to $0.46 from $6.67.

Gemini’s adjusted EBITDA measure showed an $11.6 million loss, compared with $74 million in Q2. Marks on crypto holdings and crypto loans from related parties shifted from a $25 million loss in Q2 to a $25.7 million gain in Q3, a $50.8 million swing. Gemini also cited smaller credit card loss provisions and lower employee compensation as factors in the adjusted loss improvement.

The operating loss widened to $79 million from $76.9 million in Q2. A $12.4 million increase in stock-based compensation and lower revenue outweighed a $14.9 million reduction in other operating expenses. Gemini tied the compensation increase to annual equity bonuses recognized in July.

Platform trading volume reached $4.5 billion, up 18% from $3.8 billion in Q2 but down 73% from $16.4 billion a year earlier. Gemini attributed the quarterly increase to more institutional trading in Zcash (ZEC) and expanded market-making by an affiliate. About $1.2 billion, or 26%, of spot volume came from trades between outside customers and Gemini’s own market maker.

Revenue from exchange activity was $13.4 million, a 47% decline. Services revenue and interest income accounted for 59% of net revenue, up from 47% a year earlier. Credit card revenue increased 82% to $15.5 million, while card charge-offs reached $11.5 million. Gemini linked most of those charge-offs to accounts associated with a fraud event it disclosed in Q1.

Gemini held $194.1 million in cash and cash equivalents on Sept. 30, compared with $252.2 million at year-end 2025. CEO Tyler Winklevoss said, “We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time.”