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Gemini pulled in $45.5 million in second-quarter revenue. That’s the headline number. But the real story is where the money came from — and where it didn’t.
Exchange revenue fell 38%, dropping to $12.5 million from $20.2 million the year before. Spot matched trading volume cratered 66%, going from $11.3 billion all the way down to $3.8 billion. For a company that built its name on crypto trading, those are ugly numbers. And they didn’t come out of nowhere — crypto trading volumes across major platforms have been under pressure for a while now, as retail interest ebbs and flows with market cycles. Gemini’s August 13 filing made all of this public, and the picture it paints is of a company in the middle of a pretty significant transformation.
Credit Cards Do the Heavy Lifting
The credit card business is basically what kept total revenue moving upward. Gemini’s card revenue jumped to $16.2 million from just $4.9 million a year ago — a massive swing that added $12.2 million to the top line and probably prevented the quarter from looking a lot worse. Total revenue a year earlier was $33.3 million, so the overall gain is real, even if it came from an unexpected place.
But the card business isn’t cheap to run. Gemini booked $16.1 million in credit-loss provisions tied to identity fraud. Total transaction losses climbed to $20.1 million from $3.6 million. The company also spent $8.7 million on combined card rewards and promotional incentives — the kind of costs that come with competing in a crowded credit card market. So yes, the card segment is growing. It’s also burning cash at a rate that makes the net picture murkier than the revenue line suggests.
Operating losses widened to $76.9 million, up from $65.4 million the prior year. Total operating expenses rose 24% to $122.4 million. Those aren’t small moves.
Restructuring Cuts Jobs but Not All Costs
Earlier this year, Gemini shut down operations in several regions outside the US and Singapore. Around 200 employees were let go — roughly 25% of the workforce. It was a hard cut, and the kind of move that signals a company getting serious about its cost base.
Some of it worked. Employee compensation and benefits costs, excluding stock compensation and restructuring charges, fell 20% year-over-year to $27.9 million. Operating expenses also dropped about 15% compared to the first quarter. So quarter-over-quarter, there’s progress.
Year-over-year, though, it’s a different story. The 24% rise in total operating expenses to $122.4 million means the restructuring hasn’t fully offset the cost of building out new product lines. The restructuring charge itself didn’t show up in the quarter’s reconciliation, which is worth noting — the full financial impact of those job cuts may not have landed yet.
The adjusted EBITDA loss widened to $74.0 million from $51.9 million. Gemini’s filing says that was mainly because of market-related losses on bitcoin the company received through a private placement back in May. GAAP net loss did narrow — $107.7 million versus $133.2 million a year ago — so there’s that.
Prediction Markets: Early Days, Small Numbers
Gemini launched a prediction markets product in December 2025. It’s new, it’s small, and it brought in $524,000 during the quarter. Not enough to move the needle financially, but it’s there. The company seems to want to diversify beyond crypto trading, and prediction markets are one piece of that.
Whether it becomes meaningful is unclear. The segment is early-stage, the revenue contribution is modest, and the competitive landscape for prediction markets has gotten more crowded. No details on user counts or growth trajectory were included in what’s publicly available from the filing.
What’s clearer is the broader picture: Gemini’s core exchange business is shrinking, at least measured by volume. A 66% drop in spot matched trading — from $11.3 billion to $3.8 billion — isn’t a blip. That’s a structural shift in how the platform is being used, or not used. Credit cards and prediction markets are the company’s answer to that shift, and the credit card bet is at least generating revenue, even if the fraud losses and rewards costs are eating into the gains.
Operating expenses still need work. The losses are wide. And the adjusted EBITDA figure, sitting at negative $74.0 million, is moving in the wrong direction compared to last year’s negative $51.9 million.
Gemini’s GAAP net loss came in at $107.7 million for the quarter.
Frequently Asked Questions
What was Gemini’s total revenue in Q2?
Gemini’s total second-quarter revenue reached $45.5 million, up from $33.3 million a year earlier, driven largely by growth in its credit card business.
Why did Gemini’s trading volume fall so sharply?
Spot matched trading volume dropped 66% to $3.8 billion from $11.3 billion, contributing to a 38% decline in exchange revenue to $12.5 million from $20.2 million the prior year.
What losses did Gemini’s credit card business generate?
The credit card segment brought in $16.2 million in revenue but came with $16.1 million in credit-loss provisions linked to identity fraud and total transaction losses of $20.1 million.
Why It Matters
The significant drop in exchange revenue and trading volume for Gemini highlights the ongoing challenges facing cryptocurrency exchanges amid a broader market downturn and regulatory scrutiny. As trading activity wanes, companies like Gemini are increasingly diversifying their revenue streams, as evidenced by the success of their credit card product, to adapt to a rapidly evolving landscape. This shift underscores the necessity for exchanges to innovate and find alternative ways to engage users in a market that has become increasingly competitive and volatile.
