Latest Gemini earnings expose crypto’s new exchange reality – more total revenue, less crypto trading

Gemini’s second-quarter revenue rose as its credit-card business expanded. But the core exchange shrank, while operating costs and losses remained above last year’s levels after a restructuring that cut about 200 jobs.

The company generated $45.5 million in total revenue, up from $33.3 million a year earlier, according to its Aug. 13 quarterly filing. Exchange revenue, however, fell 38% to $12.5 million from $20.2 million.

The decline was steeper in activity. Spot matched trading volume on Gemini’s platform fell to $3.8 billion from $11.3 billion, a drop of about 66%. Newer products carried more of the top line while the exchange generated less.

In February, Gemini approved a restructuring that included winding down operations in the UK, the European Union, other European jurisdictions, and Australia. The plan covered up to 200 employees, or about 25% of its workforce at the time. It preserved operations in the US and Singapore.

Some cost progress was visible, although the filing does not isolate it as realized restructuring savings. Employee compensation, benefits and personnel costs, excluding stock compensation and restructuring, fell 20% year over year to $27.9 million. Compared with the first quarter, operating expenses improved about 15% and operating loss improved about 18%.

The annual comparison remained weaker. Total operating expenses rose 24% to $122.4 million, and operating loss widened to $76.9 million from $65.4 million. The reset reduced parts of the cost base without restoring consolidated operating performance to last year’s level.

The loss measures also moved in different directions. GAAP net loss fell to $107.7 million from $133.2 million. Adjusted EBITDA loss widened to $74.0 million from $51.9 million. Gemini primarily attributed the adjusted EBITDA deterioration to market-related losses on bitcoin it received through a May private placement. The quarter’s reconciliation showed no restructuring charge. That means the wider adjusted EBITDA loss should not be attributed to the job cuts.

Credit-card revenue rose to $16.2 million from $4.9 million, driving most of Gemini’s $12.2 million increase in total revenue. The company also disclosed $8.7 million in combined card rewards and promotional and referral incentives. It also reported a $16.1 million credit-loss provision affected by an identified identity-fraud cohort.

Those consolidated disclosures are not a complete card profit-and-loss statement and do not establish a definitive margin. They do show that the new revenue carried material costs. Total transaction losses across Gemini climbed to $20.1 million from $3.6 million.

Prediction markets contributed $524,000 after launching in December 2025. The early contribution was too small to change the quarter’s economics. One quarter does not establish the product’s long-term potential.

The restructuring produced visible cost progress, but it had not materially repaired Gemini’s core exchange or year-over-year operating performance in the second quarter.

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