Gemini Reports Second Quarter 2026 Results
Gemini increased total revenue 37% YoY in Q2 2026, with a 149% YOY increase in services revenue highlighting increasingly diversified revenue amid a 38% YOY drop in exchange transaction revenue as crypto market remains soft
Gemini Space Station, Inc. (“Gemini,” the “Company,” “we,” or “us”) (NASDAQ: GEMI), a global crypto and markets platform, today announced financial results for the quarter ended June 30, 2026.
Total revenue grew 37% year-over-year to $45.5 million from $33.3 million. Notably, this revenue growth took place amid a softened crypto market, with a 38% year-over-year drop in exchange revenue from $20.2 million to $12.5 million. Services revenue led the way for this growth, with a 149% year-over-year increase from $9.5 million to $23.5 million.
Gemini also continued to realize the benefits of the cost optimization initiatives announced earlier in 2026. Operating loss improved by approximately $17.2 million, or 18%, sequentially, while total operating expenses declined 15% sequentially to $122.4 million from $144.5 million in the first quarter of 2026, reflecting lower restructuring costs, reduced stock-based compensation, and continued expense discipline across the business.
“While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue,” said Tyler Winklevoss, CEO of Gemini. “Despite crypto market headwinds, we’re making significant strides towards building a more resilient company by developing multiple paths to revenue that are less sensitive to crypto market forces and reducing operating expenses.”
“The Gemini platform has changed more in the past nine months than it did in the past decade, most recently with the addition of commission-free stock trading in July,” said Cameron Winklevoss, President of Gemini. “We’re providing more ways than ever for customers to interact with our platform. People started by trusting us with their crypto, a new and emergent asset class, and now they are trusting us with equities, predictions, our credit card, and more.”
increased 37% year-over-year to $45.5 million, driven by strong growth in services revenue.
dropped 15% year-over-year from $20.8 million to $17.8 million, driven by a significant decline in crypto trading volumes amid challenging crypto market conditions.
decreased 38% year-over-year to $12.5 million, reflecting a softer crypto market, with total trading volume declining to $3.8 billion from $11.3 billion in Q2 2025.
increased to $4.7 million from $0.6 million in Q2 2025, driven by higher institutional client activity, including several larger trades during the quarter and continued expansion of our electronic OTC (eOTC) platform.
was $0.5 million, reflecting a new, small and growing segment of transaction revenue.
increased 117% year-over-year to $26.0 million, driven primarily by credit card and staking revenue.
increased 231% year-over-year to $16.2 million. This increase was primarily driven by significant year over year growth in the Gemini Credit Card user base.
increased 50% year-over-year to $4.0 million reflecting the continued expansion of our staking offerings, including building out in-house staking validator capabilities.
was $2.7 million, reflecting an advisory services agreement with a strategic customer entered into in Q3 2025.
was $0.6 million, dropping from $1.9 million in Q2 2025. This drop was due in part to a decrease in crypto asset prices and select institutional custody net outflows this year.
increased 24% year-over-year to $122.4 million. The year-over-year increase was driven primarily by higher stock-based compensation associated with the Company's IPO and credit card-related costs reflecting the growing credit card portfolio. Despite the year-over-year increase, total operating expenses declined 15% sequentially from the first quarter of 2026, reflecting the benefits of the Company's cost optimization initiatives announced earlier in the year, including its February 2026 reduction in force and exits from international markets.
increased 31% year-over-year to $48.2 million, reflecting $20.3 million in stock-based compensation. Without stock-based compensation, total salaries and compensation decreased by 20% to $27.9 million reflecting the benefits of the February 2026 reduction in force.
decreased 45% year-over-year to $8.8 million reflecting the Company's disciplined approach to discretionary marketing spending amid weaker crypto market conditions. Within sales and marketing:
decreased 99% year-over-year to $0.1 million, reflecting intentional reductions in discretionary marketing spend as the Company prioritized operating efficiencies and realizing the cost savings related to its restructuring activities in H1’26.
■ Credit card rewards and promotional and referral incentives increased 33% year-over-year to $8.7 million, driven primarily by higher credit card crypto rewards tied to the significant growth in cardholders.
increased from $3.6 million to $20.1 million year-over-year, primarily driven by a $16.1 million provision for credit losses on the credit card portfolio. The higher provision was impacted by an identity fraud event identified earlier in 2026. The Company initially established a $4.1 million discrete reserve during the first quarter of 2026 based on information available at that time. As the investigation progressed, additional fraud patterns and affected accounts were identified associated with the same Q1 origination cohort and the related accounts migrated into later-stage delinquency buckets during the second quarter. As a result, management updated its estimate of expected losses under the Company's CECL methodology. Managed credit card receivables grew to $219.6 million at quarter-end from $93.5 million a year ago. Based on its current analysis, management believes the elevated provision is concentrated within this identified fraud-related cohort and does not reflect broad-based deterioration in the underlying credit portfolio. The Company has implemented additional fraud
detection and account monitoring measures this quarter in response to the identified activity.
remained relatively flat year-over-year at $18.8 million, as increased infrastructure investments to support platform growth and new product launches were largely offset by cost optimization initiatives.
improved 18% sequentially, marking the third consecutive quarter of improvement and reflecting continued operating leverage from the Company’s cost optimization initiatives.
decreased 19% year-over-year to $107.7 million, compared to $133.2 million in Q2 2025.
decreased to $(74.0) million, compared to $(51.9) million in Q2 2025. The decrease was primarily attributable to market-driven realized and unrealized losses on bitcoin received in connection with the Company's May 2026 private placement following declines in bitcoin prices. The Company otherwise continued to benefit from revenue growth and improved operating leverage resulting from its cost optimization initiatives.
were $8.4 billion as of Q2 2026, compared to $18.2 billion as of Q2 2025, reflecting lower crypto asset valuations relative to the elevated market levels in the prior year period and select institutional custody asset outflows.
● On July 7, 2026, Gemini announced the launch of stock trading with 0% commissions for United States customers in eligible states.
● Combined with our Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO) licenses, which we secured in December 2025 and April 2026, respectively, this launch is another critical step on the company’s path to operating a full-stack regulated marketplace spanning multiple trading offerings, including spot crypto, prediction markets, derivatives, and now U.S. equities.
• On August 4, 2026, Gemini’s derivatives clearinghouse went live, allowing Gemini to settle its own predictions contracts. This is part of Gemini’s plans to explore expanding its derivatives offering for U.S. customers to include crypto futures, options, and perpetual futures contracts or perps.
• This news follows the announcement that Gemini received its Derivatives Clearing Organization (DCO) license from the Commodity Futures Trading Commission (CFTC) on April 29, 2026. Gemini also received its Designated Contract Market (DCM) license from the CFTC in December 2025.
● Gemini Predictions set a new monthly volume record in each month of the second quarter, with event contracts traded up 93% quarter-over-quarter. Cumulative contracts traded since the December 2025 launch surpassed 225 million.
● Gemini invested in marketplace liquidity and trader experience during the quarter, tripling the number of contracted market makers on Gemini Predictions, introducing new maker and taker incentive programs, and expanding market maker infrastructure with improvements to our Predictions API.
As previously announced, management will host a conference call tomorrow, August 14, 2026, at 8:30 a.m. E.T to discuss its Q2 2026 earnings results. The event will be webcast live via our investor relations website.
Call registration and webcast details are available on the Events page of our investor relations website https://investors.gemini.com/ ahead of the call. Following the call, a replay and transcript, as well as copies of Gemini’s earnings press release and earnings presentation, will also be available at https://investors.gemini.com/. The information on our website or accessible through our website is not incorporated or a part of this earnings release.
Assets June 30, December 31, Current assets: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 188,618 $ 252,215 equivalents Restricted cash and cash 103,506 115,279 equivalents Customer custodial funds 454,717 527,354 Crypto assets held 331,048 439,622 Accounts receivable, net 24,425 30,887 Credit card receivables 181,994 188,754 pledged, net Prepaid expenses and other current 43,490 52,140 assets Total current assets 1,327,798 1,606,251 Software, property and 13,242 15,083 equipment, net Intangible assets, net 128,687 139,805 Other non-current 32,868 40,708 assets, net Total assets $ 1,502,595 $ 1,801,847 Liabilities and Stockholders' Equity Current liabilities: Custodial funds due to $ 454,588 $ 527,307 customers Accounts payable 6,221 2,647 Accrued expenses 37,081 42,679 Third party loans 75,016 75,151 Related party loans 258,765 403,931 Funding debt 147,382 154,374 Other current 42,664 34,315 liabilities Total current 1,021,717 1,240,404 liabilities Non-current liabilities: Lease liabilities 12,571 20,570 Total non-current 12,571 20,570 liabilities Total liabilities 1,034,288 1,260,974 Commitments and contingencies Stockholders' equity: Class A common stock, par value $0.001 per share; 1,000,000 shares authorized; 52,238 and 42,329 shares 54 43 issued and outstanding as of June 30, 2026 and December 31, 2025, respectively Class B common stock, par value $0.001 per share; 100,000 shares authorized; 75 75 75,127 shares issued and outstanding as of June 30, 2026 and December 31, 2025 Preferred stock, par value $0.001 per share; 20,000 shares authorized, no — — shares issued and outstanding as of June 30, 2026 and December 31, 2025 Treasury stock at cost; 1,303 and 284 shares as of June 30, -572 -568 2026 and December 31, 2025, respectively Additional paid-in 2,727,920 2,583,689 capital Accumulated other 785 887 comprehensive income Accumulated deficit -2,259,955 -2,043,253 Total stockholders' 468,307 540,873 equity Total liabilities and stockholders' $ 1,502,595 $ 1,801,847 equity
Six Months Ended June Cash flows from 30, operating activities 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net loss $ -216,702 $ -282,476 Adjustments to reconcile net loss to net cash used in operating activities Depreciation and 14,780 15,517 amortization Impairment 1,327 — Change in fair value on related party — 17,611 convertible notes Change in fair value on related party — 94,320 loans Realized and unrealized loss (gain) on 161,697 -37,855 crypto assets and receivable, crypto assets pledged Realized and unrealized loss (gain) on -125,753 62,048 related party crypto loans Provision for 31,237 7,683 transaction losses Stock-based 44,482 3,208 compensation Crypto assets received -4,695 -12,169 as revenue Crypto asset payments 19,926 12,987 for expenses Warrants received as -5,419 — revenue Non-cash lease expense 3,199 2,436 Realized and unrealized loss (gain) -3,786 920 on derivatives Other operating 2,559 4,156 activities, net Changes in operating assets and liabilities: Purchase of crypto -37,694 -73,626 assets Disposal of crypto 27,190 150,065 assets Accounts receivable -31,505 -2,804 Other assets 4,950 61,228 Accounts payable and -13,626 -12,779 accrued expenses Payables due to -1,402 29,557 related parties Payables due to third -533 5,381 parties Payables due for 198 — funding debt Lease liabilities -4,229 274 Other liabilities 27,922 -64,210 Net cash used in -105,877 -18,528 operating activities Cash flows from investing activities Proceeds from disposal 25,084 76,460 of crypto assets Purchases of credit -981,121 -298,083 card receivables Proceeds from repayments of credit 996,231 269,266 card receivables Capitalization of internally developed -1,619 -1,598 software costs Purchase of software, property and -219 -422 equipment Other investing 142 — activities, net Net cash provided by investing 38,498 45,623 activities Cash flows from financing activities Custodial funds due to customers, net of -73,194 -91,162 redemptions Proceeds from related — 15,100 party loans Proceeds from third party loan, net of 75,000 — discount Proceeds from funding 844,970 — debt Repayment of funding -852,160 — debt Repayment of third -75,000 — party loans Payment of withholding taxes on -240 — settlement of restricted stock units
Payment for tax withholdings related to net share settlements of equity awards Net cash used in financing activities Net decrease in cash, cash equivalents, restricted cash and cash equivalents Cash, cash equivalents, restricted cash and cash equivalents, beginning of period Cash, cash equivalents, restricted cash and cash equivalents, end of period Cash, cash equivalents, (4) — restricted cash and (80,628) (76,062) cash equivalents Six Months Ended June (148,007) (48,967) consisted of the 30, 894,848 646,858 following: 2026 746,841 2025 597,891 ────────────────────────────────────────────────────────────────────────────── Cash and cash $ 188,618 $ 51,053 equivalents Restricted cash and 103,506 63,641 cash equivalents Customer custodial 454,717 483,197 funds Total cash, cash equivalents, restricted $ 746,841 $ 597,891 cash and cash equivalents Supplemental disclosure of cash flow information Cash paid during the $ 11,164 $ 1,798 period for interest Cash paid during the period for income 530 410 taxes, net of refunds Payments for operating lease 4,229 2,799 liabilities Supplemental schedule of non-cash investing and financing activities Related party loans received in crypto 223,980 189,336 assets Repayments of related party loans 241,991 56,159 denominated in crypto assets Issuance of common stock in exchange for 100,000 — crypto assets Credit card receivables returned as -6,760 — collateral for funding debt, net Crypto assets returned as collateral for — -211 third party loans, net Crypto asset collateral received -424 14,273 for derivatives, net Repayment of third party loan interest — 5,417 denominated in crypto Change in fair value attributable to — 3,271 instrument-specific credit risk Drawdown of related party loans (crypto — 10,085 in-transit)
This communication contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding our operating results and financial position; anticipated future expenses, including our financial outlook, and investments; expectations relating to certain of our key financial and operating metrics; our business strategy and plans, including expectations related to our full-stack end-to-end marketplace and super app strategy; expectations relating to legal and regulatory proceedings; expectations relating to our industry, the regulatory environment, market conditions, trends and growth; expectations relating to customer behaviors and preferences; our market position; potential market opportunities; and our objectives for future operations. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward- looking statements are subject to a number of risks, uncertainties, and assumptions, including, among others: our ability to successfully execute our business and growth strategy and generate future profitability; market acceptance of our products and services; our ability to further penetrate our existing customer base and expand our customer base; our ability to develop new products and services and achieve customer adoption of them; our ability obtain applicable regulatory approvals; the success of any acquisitions or investments that we make; the possibility of adverse developments in pending litigation; the risk that the outcome of currently ongoing and potential future regulatory litigation and/or enforcement actions, as well as potential changes in federal or state law, could immediately or subsequently prevent us from offering, or continuing to offer, event contracts; the effects of increased competition in our markets; our ability to stay in compliance with applicable laws and regulations; stock price fluctuations; market conditions across the cryptoeconomy, including crypto price volatility; and general market, political, and economic conditions, including interest rate fluctuations, inflation, tariffs, instability in the global banking system, economic downturns, and other global events, including regional wars and conflicts and government shutdowns. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward- looking statements. Further information on risks that could cause actual results to differ materially from anticipated results is included, or will be included, in our filings we make with the Securities and Exchange Commission from time to time, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements.
Management believes that Adjusted EBITDA, which is a measure not presented in accordance with GAAP, provides investors with additional useful information in evaluating our performance. We use this non-GAAP measure internally to evaluate performance and to make financial, investment and operational decisions. We believe that presentation of this non-GAAP measure provides investors with greater transparency with respect to our operating results and that this measure is useful for period-to-period comparisons of results. Management also believes that providing this non-GAAP measure helps investors evaluate the Company’s operating performance, profitability and business trends in a way that is consistent with how management evaluates such matters. We define Adjusted EBITDA as net income (loss), adjusted to exclude provision for (benefit from) income taxes, interest expense, depreciation and amortization, stock-based compensation expense, impairment, restructuring charges, non-recurring legal contingencies, settlement and related costs, change in fair value on related party convertible notes, change in fair value on related party loans, gain on conversion of convertible notes and term loans, and unrealized foreign exchange loss (gain). Among other non-cash and non-recurring items, Adjusted EBITDA excludes stock- based compensation expense, which has recently been, and will continue to be for the foreseeable future, a significant recurring expense for our business and an important part of our compensation strategy. In addition, on February 5, 2026, the Company announced its plans to wind down operations in the United Kingdom, European Union, other European jurisdictions, and Australia. As such, beginning with the quarter ended March 31, 2026, Adjusted EBITDA also excludes related restructuring charges, which primarily relate to workforce reductions, lease exit costs, and other actions taken to streamline our operations and that we believe are unusual in nature and/or infrequent in occurrence and are not indicative of our ongoing operating activities. Other companies, including companies in our industry, may calculate similarly titled non-GAAP measures differently or may use other non-GAAP measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures as a tool for comparison. A reconciliation of Adjusted EBITDA is provided in this earnings release to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business. Adjusted EBITDA is presented for supplemental informational purposes only, has limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP.
In addition to the measures presented in our unaudited condensed consolidated financial statements, management uses key performance metrics to help evaluate our business, identify trends affecting our business, formulate business plans, and make strategic decisions. Our key performance metrics include MTUs, LTUs, Card Sign-Ups, Trading Volume, and Assets on Platform. Definitions of these key performance metrics can be found below:
• Monthly Transacting User: any retail or institutional user who has engaged in any revenue-generating activity or whose account otherwise generated revenue for the Company in the trailing thirty days. MTUs presented for a quarter represent the MTUs as of the last day of the respective quarter. MTUs presented as of the end of a year represent the MTUs as of the last day of that year.
• Lifetime Transacting User: LTUs represent the cumulative number of unique MTUs who have ever transacted on our platform and continue to maintain an open account, measured since inception.
• Card Sign-Ups: the cumulative number of approved applications for the Gemini Credit Card in the relevant period. Card Sign-Ups include customers who have been approved to open an account, regardless of whether they have subsequently activated or used their card or whether the account later remains open.
• Trading Volume: the total U.S. dollar equivalent value of spot matched trades transacted between a buyer and seller through our platform during the period of measurement.
• Assets on Platform: the total value of assets held on our platform and includes digital assets in custody, staking, and exchange products, user custodial fiat, and GUSD reserve assets.
For more information and a more detailed discussion of our Key Performance Metrics, refer to the filings that we make with the Securities and Exchange Commission from time to time, including our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q.
As a reminder, we announce material information to the public through filings with the SEC, the investor relations page on our website (investors.gemini.com), the blog on our website (www.gemini.com/blog), press releases, public conference calls, public webcasts, our X account (@gemini), and our LinkedIn page. The information disclosed in the foregoing channels could be deemed to be material information and we use these channels for complying with our disclosure obligations under Regulation FD. As such, we encourage investors, the media, and others to monitor the channels listed above and to review the information disclosed through such channels.
Gemini (NASDAQ: GEMI) is a global crypto and markets platform founded by Cameron and Tyler Winklevoss in 2014. Gemini offers a wide range of crypto and markets products and services for individuals and institutions. Gemini's simple, reliable, and secure products are built to unlock the next era of financial, creative, and personal freedom.
Full text with the tables
Gemini Reports Second Quarter 2026 Results
Gemini increased total revenue 37% YoY in Q2 2026, with a 149% YOY increase in
services revenue highlighting increasingly diversified revenue amid a 38% YOY
drop in exchange transaction revenue as crypto market remains soft
NEW YORK, August 13, 2026 –
Gemini Space Station, Inc. (“Gemini,” the “Company,” “we,” or “us”) (NASDAQ:
GEMI), a global crypto and markets platform, today announced financial results
for the quarter ended June 30, 2026.
Total revenue grew 37% year-over-year to $45.5 million from $33.3 million.
Notably, this revenue growth took place amid a softened crypto market, with a
38% year-over-year drop in exchange revenue from $20.2 million to $12.5 million.
Services revenue led the way for this growth, with a 149% year-over-year
increase from $9.5 million to $23.5 million.
Gemini also continued to realize the benefits of the cost optimization
initiatives announced earlier in 2026. Operating loss improved by approximately
$17.2 million, or 18%, sequentially, while total operating expenses declined 15%
sequentially to $122.4 million from $144.5 million in the first quarter of 2026,
reflecting lower restructuring costs, reduced stock-based compensation, and
continued expense discipline across the business.
“While we still have work to do as a company, this quarter’s results reflect our
ongoing efforts to reduce operating expenses while diversifying revenue,” said
Tyler Winklevoss, CEO of Gemini. “Despite crypto market headwinds, we’re making
significant strides towards building a more resilient company by developing
multiple paths to revenue that are less sensitive to crypto market forces and
reducing operating expenses.”
“The Gemini platform has changed more in the past nine months than it did in the
past decade, most recently with the addition of commission-free stock trading in
July,” said Cameron Winklevoss, President of Gemini. “We’re providing more ways
than ever for customers to interact with our platform. People started by
trusting us with their crypto, a new and emergent asset class, and now they are
trusting us with equities, predictions, our credit card, and more.”
Second Quarter Results:
●
Total revenue
increased 37% year-over-year to $45.5 million, driven by strong growth in
services revenue.
○
Transaction revenue
dropped 15% year-over-year from $20.8 million to $17.8 million, driven by a
significant decline in crypto trading volumes amid challenging crypto market
conditions.
■
Exchange revenue
decreased 38% year-over-year to $12.5 million, reflecting a softer crypto
market, with total trading volume declining to $3.8 billion from $11.3 billion
in Q2 2025.
■
OTC revenue
increased to $4.7 million from $0.6 million in Q2 2025, driven by higher
institutional client activity, including several larger trades during the
quarter and continued expansion of our electronic OTC (eOTC) platform.
■
Prediction markets revenue
was $0.5 million, reflecting a new, small and growing segment of transaction
revenue.
○
Services revenue and interest income
increased 117% year-over-year to $26.0 million, driven primarily by credit card
and staking revenue.
■
Credit card revenue
increased 231% year-over-year to $16.2 million. This increase was primarily
driven by significant year over year growth in the Gemini Credit Card user base.
■
Staking revenue
increased 50% year-over-year to $4.0 million reflecting the continued expansion
of our staking offerings, including building out in-house staking validator
capabilities.
■
Advisory fee revenue
was $2.7 million, reflecting an advisory services agreement with a strategic
customer entered into in Q3 2025.
■
Custodial fee revenue
was $0.6 million, dropping from $1.9 million in Q2 2025. This drop was due in
part to a decrease in crypto asset prices and select institutional custody net
outflows this year.
■
Interest income
was $2.4 million, roughly flat from Q2 2025.
●
Total operating expenses
increased 24% year-over-year to $122.4 million. The year-over-year increase was
driven primarily by higher stock-based compensation associated with the
Company's IPO and credit card-related costs reflecting the growing credit card
portfolio. Despite the year-over-year increase, total operating expenses
declined 15% sequentially from the first quarter of 2026, reflecting the
benefits of the Company's cost optimization initiatives announced earlier in the
year, including its February 2026 reduction in force and exits from
international markets.
○
Salaries and compensation
increased 31% year-over-year to $48.2 million, reflecting $20.3 million in
stock-based compensation. Without stock-based compensation, total salaries and
compensation decreased by 20% to $27.9 million reflecting the benefits of the
February 2026 reduction in force.
○
Sales and marketing
decreased 45% year-over-year to $8.8 million reflecting the Company's
disciplined approach to discretionary marketing spending amid weaker crypto
market conditions. Within sales and marketing:
■
Marketing acquisition and brand spend
decreased 99% year-over-year to $0.1 million, reflecting intentional reductions
in discretionary marketing spend as the Company prioritized operating
efficiencies and realizing the cost savings related to its restructuring
activities in H1’26.
■ Credit card rewards and promotional and referral incentives increased 33%
year-over-year to $8.7 million, driven primarily by higher credit card crypto
rewards tied to the significant growth in cardholders.
○
Transaction losses
increased from $3.6 million to $20.1 million year-over-year, primarily driven by
a $16.1 million provision for credit losses on the credit card portfolio. The
higher provision was impacted by an identity fraud event identified earlier in
2026. The Company initially established a $4.1 million discrete reserve during
the first quarter of 2026 based on information available at that time. As the
investigation progressed, additional fraud patterns and affected accounts were
identified associated with the same Q1 origination cohort and the related
accounts migrated into later-stage delinquency buckets during the second
quarter. As a result, management updated its estimate of expected losses under
the Company's CECL methodology. Managed credit card receivables grew to $219.6
million at quarter-end from $93.5 million a year ago. Based on its current
analysis, management believes the elevated provision is concentrated within this
identified fraud-related cohort and does not reflect broad-based deterioration
in the underlying credit portfolio. The Company has implemented additional fraud
detection and account monitoring measures this quarter in response to the
identified activity.
○
Technology expenses
remained relatively flat year-over-year at $18.8 million, as increased
infrastructure investments to support platform growth and new product launches
were largely offset by cost optimization initiatives.
○
General and administrative expenses
increased 7% year-over-year to $20.6 million, driven by higher legal expenses.
●
Operating loss
improved 18% sequentially, marking the third consecutive quarter of improvement
and reflecting continued operating leverage from the Company’s cost optimization
initiatives.
●
Net loss
decreased 19% year-over-year to $107.7 million, compared to $133.2 million in Q2
2025.
●
Net loss per share
, basic and diluted, was $(0.89), compared to $27.08 in Q2 2025.
●
Adjusted EBITDA
decreased to $(74.0) million, compared to $(51.9) million in Q2 2025. The
decrease was primarily attributable to market-driven realized and unrealized
losses on bitcoin received in connection with the Company's May 2026 private
placement following declines in bitcoin prices. The Company otherwise continued
to benefit from revenue growth and improved operating leverage resulting from
its cost optimization initiatives.
●
Cash and cash equivalents
totaled $188.6 million, compared with $252.2 million in Q4 2025.
●
Monthly Transacting Users
were up 11% year-over-year to 580,000.
●
Assets on Platform
were $8.4 billion as of Q2 2026, compared to $18.2 billion as of Q2 2025,
reflecting lower crypto asset valuations relative to the elevated market levels
in the prior year period and select institutional custody asset outflows.
Business Highlights
Gemini Launched Commission-Free Stock Trading To Build Financial Super App
● On July 7, 2026, Gemini announced the launch of stock trading with 0%
commissions for United States customers in eligible states.
● Combined with our Designated Contract Market (DCM) and Derivatives Clearing
Organization (DCO) licenses, which we secured in December 2025 and April 2026,
respectively, this launch is another critical step on the company’s path to
operating a full-stack regulated marketplace spanning multiple trading
offerings, including spot crypto, prediction markets, derivatives, and now U.S.
equities.
Gemini’s Derivatives Clearinghouse Is Now Live Following DCO Approval in April
• On August 4, 2026, Gemini’s derivatives clearinghouse went live, allowing
Gemini to settle its own predictions contracts. This is part of Gemini’s plans
to explore expanding its derivatives offering for U.S. customers to include
crypto futures, options, and perpetual futures contracts or perps.
• This news follows the announcement that Gemini received its Derivatives
Clearing Organization (DCO) license from the Commodity Futures Trading
Commission (CFTC) on April 29, 2026. Gemini also received its Designated
Contract Market (DCM) license from the CFTC in December 2025.
Gemini Predictions Continues To See Record Monthly Volumes Since April
● Gemini Predictions set a new monthly volume record in each month of the second
quarter, with event contracts traded up 93% quarter-over-quarter. Cumulative
contracts traded since the December 2025 launch surpassed 225 million.
● Gemini invested in marketplace liquidity and trader experience during the
quarter, tripling the number of contracted market makers on Gemini Predictions,
introducing new maker and taker incentive programs, and expanding market maker
infrastructure with improvements to our Predictions API.
Conference Call
As previously announced, management will host a conference call tomorrow, August
14, 2026, at 8:30 a.m. E.T to discuss its Q2 2026 earnings results. The event
will be webcast live via our investor relations website.
Call registration and webcast details are available on the Events page of our
investor relations website https://investors.gemini.com/ ahead of the call.
Following the call, a replay and transcript, as well as copies of Gemini’s
earnings press release and earnings presentation, will also be available at
https://investors.gemini.com/. The information on our website or accessible
through our website is not incorporated or a part of this earnings release.
Gemini Space Station, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except par value)
(unaudited)
Assets June 30, December 31,
Current assets: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 188,618 $ 252,215
equivalents
Restricted cash and cash 103,506 115,279
equivalents
Customer custodial funds 454,717 527,354
Crypto assets held 331,048 439,622
Accounts receivable, net 24,425 30,887
Credit card receivables 181,994 188,754
pledged, net
Prepaid expenses and
other current 43,490 52,140
assets
Total current assets 1,327,798 1,606,251
Software, property and 13,242 15,083
equipment, net
Intangible assets, net 128,687 139,805
Other non-current 32,868 40,708
assets, net
Total assets $ 1,502,595 $ 1,801,847
Liabilities and
Stockholders' Equity
Current liabilities:
Custodial funds due to $ 454,588 $ 527,307
customers
Accounts payable 6,221 2,647
Accrued expenses 37,081 42,679
Third party loans 75,016 75,151
Related party loans 258,765 403,931
Funding debt 147,382 154,374
Other current 42,664 34,315
liabilities
Total current 1,021,717 1,240,404
liabilities
Non-current liabilities:
Lease liabilities 12,571 20,570
Total non-current 12,571 20,570
liabilities
Total liabilities 1,034,288 1,260,974
Commitments and
contingencies
Stockholders' equity:
Class A common stock,
par value $0.001
per share; 1,000,000
shares authorized;
52,238 and 42,329 shares 54 43
issued and
outstanding as of June
30, 2026 and
December 31, 2025,
respectively
Class B common stock,
par value $0.001
per share; 100,000
shares authorized; 75 75
75,127 shares issued and
outstanding as
of June 30, 2026 and
December 31, 2025
Preferred stock, par
value $0.001 per
share; 20,000 shares
authorized, no — —
shares issued and
outstanding as of June
30, 2026 and December
31, 2025
Treasury stock at cost;
1,303 and 284
shares as of June 30, -572 -568
2026 and December
31, 2025, respectively
Additional paid-in 2,727,920 2,583,689
capital
Accumulated other 785 887
comprehensive income
Accumulated deficit -2,259,955 -2,043,253
Total stockholders' 468,307 540,873
equity
Total liabilities and
stockholders' $ 1,502,595 $ 1,801,847
equity
Gemini Space Station, Inc.
Condensed Consolidated Statements of Operations and Comprehensive Loss
(in thousands, except per share data)
(unaudited)
Three Six
Months Months
Ended Ended
June June
30, 30,
Reve… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 43,704 $ 32,797 $ 92,282 $ 67,914
reve…
Other 1,771 492 3,465 697
reve…
Total 45,475 33,289 95,747 68,611
reve…
Oper…
expe…
Sala…
and 48,223 36,829 113,6… 71,101
comp…
Tech… 18,758 17,799 40,848 34,473
Gene…
and 20,585 19,248 42,265 33,247
admi…
Tran… 20,147 3,553 31,237 7,683
loss…
Sales
and 8,818 16,122 27,889 25,158
mark…
Tran… 5,885 5,173 10,986 10,411
proc…
Total
oper… 122,416 98,724 266,8… 182,073
expe…
Oper… -76,941 -65,4… -171,… -113,4…
loss
Other
inco…
(exp…
Real…
and
unre…
gain
(los…
on
cryp… -60,720 166,7… -161,… 37,855
asse…
and
rece…
cryp…
asse…
pled…
Real…
and
unre…
gain
(los… 35,671 -161,… 125,7… -62,048
on
rela…
party
cryp…
loans
Chan…
in
fair
value
on — -9,424 — -17,611
rela…
party
conv…
notes
Chan…
in
fair
value — -38,7… — -94,320
on
rela…
party
loans
Inte…
expe…
on -2,714 -16,3… -6,025 -30,243
rela…
party
loans
Inte…
expe…
on -1,809 -3,265 -3,601 -6,493
third
party
loans
Inte…
expe…
on -2,553 — -5,048 —
fund…
debt
Other
inco… 1,364 -5,628 5,088 -1,090
(exp…
net
Total
other
inco… -30,761 -67,7… -45,5… -173,9…
(exp…
net
Net
loss
befo… -107,7… -133,… -216,… -287,4…
inco…
taxes
Inco…
tax -22 -76 -43 4,936
bene…
(pro…
Net $ -107,7… $ -133,… $ -216,… $ -282,4…
loss
Net
loss
per
share
attr…
to
comm…
stoc…
Basic $ -0.89 $ -27.08 $ -1.82 $ -57.41
Dilu… $ -0.89 $ -27.08 $ -1.82 $ -57.41
Weig…
aver…
shar…
outs… 121,272 4,920 118,9… 4,920
-
basic
and
dilu…
Net $ -107,7… $ -133,… $ -216,… $ -282,4…
loss
Other
comp…
inco…
(los…
Fore…
curr…
tran… -408 1,434 -102 1,909
net
of
tax
Chan…
in
fair
value
attr… — -1,056 — 3,271
to
inst…
cred…
risk
Total
other
comp… -408 378 -102 5,180
inco…
(los…
Comp… $ -108,1… $ -132,… $ -216,… $ -277,2…
loss
Gemini Space Station, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Six Months Ended June
Cash flows from 30,
operating activities 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net loss $ -216,702 $ -282,476
Adjustments to
reconcile net loss to
net
cash used in operating
activities
Depreciation and 14,780 15,517
amortization
Impairment 1,327 —
Change in fair value
on related party — 17,611
convertible notes
Change in fair value
on related party — 94,320
loans
Realized and
unrealized loss (gain)
on 161,697 -37,855
crypto assets and
receivable, crypto
assets pledged
Realized and
unrealized loss (gain)
on -125,753 62,048
related party crypto
loans
Provision for 31,237 7,683
transaction losses
Stock-based 44,482 3,208
compensation
Crypto assets received -4,695 -12,169
as revenue
Crypto asset payments 19,926 12,987
for expenses
Warrants received as -5,419 —
revenue
Non-cash lease expense 3,199 2,436
Realized and
unrealized loss (gain) -3,786 920
on
derivatives
Other operating 2,559 4,156
activities, net
Changes in operating
assets and
liabilities:
Purchase of crypto -37,694 -73,626
assets
Disposal of crypto 27,190 150,065
assets
Accounts receivable -31,505 -2,804
Other assets 4,950 61,228
Accounts payable and -13,626 -12,779
accrued expenses
Payables due to -1,402 29,557
related parties
Payables due to third -533 5,381
parties
Payables due for 198 —
funding debt
Lease liabilities -4,229 274
Other liabilities 27,922 -64,210
Net cash used in -105,877 -18,528
operating activities
Cash flows from
investing activities
Proceeds from disposal 25,084 76,460
of crypto assets
Purchases of credit -981,121 -298,083
card receivables
Proceeds from
repayments of credit 996,231 269,266
card
receivables
Capitalization of
internally developed -1,619 -1,598
software costs
Purchase of software,
property and -219 -422
equipment
Other investing 142 —
activities, net
Net cash provided by
investing 38,498 45,623
activities
Cash flows from
financing activities
Custodial funds due to
customers, net of -73,194 -91,162
redemptions
Proceeds from related — 15,100
party loans
Proceeds from third
party loan, net of 75,000 —
discount
Proceeds from funding 844,970 —
debt
Repayment of funding -852,160 —
debt
Repayment of third -75,000 —
party loans
Payment of withholding
taxes on -240 —
settlement of
restricted stock units
Gemini Space Station, Inc.
Condensed Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Payment for tax
withholdings related
to net share
settlements of equity
awards
Net cash used in
financing activities
Net decrease in cash,
cash equivalents,
restricted cash and
cash equivalents
Cash, cash
equivalents,
restricted cash and
cash equivalents,
beginning of period
Cash, cash
equivalents,
restricted cash and
cash equivalents, end
of period
Cash, cash
equivalents, (4) —
restricted cash and (80,628) (76,062)
cash equivalents Six Months Ended June (148,007) (48,967)
consisted of the 30, 894,848 646,858
following: 2026 746,841 2025 597,891
──────────────────────────────────────────────────────────────────────────────
Cash and cash $ 188,618 $ 51,053
equivalents
Restricted cash and 103,506 63,641
cash equivalents
Customer custodial 454,717 483,197
funds
Total cash, cash
equivalents,
restricted $ 746,841 $ 597,891
cash and cash
equivalents
Supplemental
disclosure of cash
flow
information
Cash paid during the $ 11,164 $ 1,798
period for interest
Cash paid during the
period for income 530 410
taxes, net of refunds
Payments for
operating lease 4,229 2,799
liabilities
Supplemental schedule
of non-cash
investing and
financing activities
Related party loans
received in crypto 223,980 189,336
assets
Repayments of related
party loans 241,991 56,159
denominated in crypto
assets
Issuance of common
stock in exchange for 100,000 —
crypto assets
Credit card
receivables returned
as -6,760 —
collateral for
funding debt, net
Crypto assets
returned as
collateral for — -211
third party loans,
net
Crypto asset
collateral received -424 14,273
for
derivatives, net
Repayment of third
party loan interest — 5,417
denominated in crypto
Change in fair value
attributable to — 3,271
instrument-specific
credit risk
Drawdown of related
party loans (crypto — 10,085
in-transit)
Reconciliation of Non-GAAP Financial Measures
Adjus…
EBITDA
(in
thous… Q2'25 Q3'25 Q4'25 Q1'26 Q2'26
──────────────────────────────────────────────────────────────────────────────
Net $ -133,… $ -159,… $ -140,… $ -108,… $ -107,…
loss
Adju…
to
excl…
the
foll…
Prov…
for
(ben… 76 -1,186 135 21 22
from)
inco…
taxes
Inte… 19,611 22,816 10,782 7,598 7,076
expe…
Depr…
and 7,662 7,672 7,534 7,482 7,298
amor…
Stoc…
comp… 1,753 45,751 35,997 24,178 20,304
expe…
Impa… — — 650 — —
Rest… — — — 7,866 —
char…
Non-…
legal
cont…
sett… 3,848 — — 424 —
and
rela…
costs
Chan…
in
fair
value
on 9,424 8,178 — — —
rela…
party
conv…
notes
Chan…
in
fair
value 38,773 24,989 — — —
on
rela…
party
loans
Non-…
gain
rela…
to
conv…
of — — -5,841 — —
conv…
notes
and
term
loans
Unre…
fore…
exch… 190 -1,087 -591 1,484 -1,010
loss
(gai…
Adju… $ -51,8… $ -52,3… $ -92,1… $ -59,9… $ -74,0…
EBIT…
____…
(1)
Incl…
impa…
char…
in
conn…
with
the
rest…
of
$1.3
mill…
Forward-Looking Statements
This communication contains forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. We intend such forward-looking
statements to be covered by the safe harbor provisions for forward-looking
statements contained in Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended. All
statements other than statements of historical fact are forward-looking
statements. These statements include, but are not limited to, statements
regarding our operating results and financial position; anticipated future
expenses, including our financial outlook, and investments; expectations
relating to certain of our key financial and operating metrics; our business
strategy and plans, including expectations related to our full-stack end-to-end
marketplace and super app strategy; expectations relating to legal and
regulatory proceedings; expectations relating to our industry, the regulatory
environment, market conditions, trends and growth; expectations relating to
customer behaviors and preferences; our market position; potential market
opportunities; and our objectives for future operations. The words “believe,”
“may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,”
“expect,” “could,” “would,” “project,” “plan,” “target,” and similar expressions
are intended to identify forward-looking statements. Forward-looking statements
are based on management’s expectations, assumptions, and projections based on
information available at the time the statements were made. These forward-
looking statements are subject to a number of risks, uncertainties, and
assumptions, including, among others: our ability to successfully execute our
business and growth strategy and generate future profitability; market
acceptance of our products and services; our ability to further penetrate our
existing customer base and expand our customer base; our ability to develop new
products and services and achieve customer adoption of them; our ability obtain
applicable regulatory approvals; the success of any acquisitions or investments
that we make; the possibility of adverse developments in pending litigation; the
risk that the outcome of currently ongoing and potential future regulatory
litigation and/or enforcement actions, as well as potential changes in federal
or state law, could immediately or subsequently prevent us from offering, or
continuing to offer, event contracts; the effects of increased competition in
our markets; our ability to stay in compliance with applicable laws and
regulations; stock price fluctuations; market conditions across the
cryptoeconomy, including crypto price volatility; and general market, political,
and economic conditions, including interest rate fluctuations, inflation,
tariffs, instability in the global banking system, economic downturns, and other
global events, including regional wars and conflicts and government shutdowns.
It is not possible for our management to predict all risks, nor can we assess
the impact of all factors on our business or the extent to which any factor, or
combination of factors, may cause actual results to differ materially from those
contained in any forward-looking statements we may make. In light of these
risks, uncertainties, and assumptions, our actual results could differ
materially and adversely from those anticipated or implied in the forward-
looking statements. Further information on risks that could cause actual results
to differ materially from anticipated results is included, or will be included,
in our filings we make with the Securities and Exchange Commission from time to
time, including our Annual Reports on Form 10-K and Quarterly Reports on Form
10-Q. Except as required by law, we assume no obligation to update these
forward-looking statements, or to update the reasons if actual results differ
materially from those anticipated in the forward-looking statements.
Non-GAAP Financial Measures
Management believes that Adjusted EBITDA, which is a measure not presented in
accordance with GAAP, provides investors with additional useful information in
evaluating our performance. We use this non-GAAP measure internally to evaluate
performance and to make financial, investment and operational decisions. We
believe that presentation of this non-GAAP measure provides investors with
greater transparency with respect to our operating results and that this measure
is useful for period-to-period comparisons of results. Management also believes
that providing this non-GAAP measure helps investors evaluate the Company’s
operating performance, profitability and business trends in a way that is
consistent with how management evaluates such matters. We define Adjusted EBITDA
as net income (loss), adjusted to exclude provision for (benefit from) income
taxes, interest expense, depreciation and amortization, stock-based compensation
expense, impairment, restructuring charges, non-recurring legal contingencies,
settlement and related costs, change in fair value on related party convertible
notes, change in fair value on related party loans, gain on conversion of
convertible notes and term loans, and unrealized foreign exchange loss (gain).
Among other non-cash and non-recurring items, Adjusted EBITDA excludes stock-
based compensation expense, which has recently been, and will continue to be for
the foreseeable future, a significant recurring expense for our business and an
important part of our compensation strategy. In addition, on February 5, 2026,
the Company announced its plans to wind down operations in the United Kingdom,
European Union, other European jurisdictions, and Australia. As such, beginning
with the quarter ended March 31, 2026, Adjusted EBITDA also excludes related
restructuring charges, which primarily relate to workforce reductions, lease
exit costs, and other actions taken to streamline our operations and that we
believe are unusual in nature and/or infrequent in occurrence and are not
indicative of our ongoing operating activities. Other companies, including
companies in our industry, may calculate similarly titled non-GAAP measures
differently or may use other non-GAAP measures to evaluate their performance,
all of which could reduce the usefulness of our non-GAAP financial measures as a
tool for comparison. A reconciliation of Adjusted EBITDA is provided in this
earnings release to the most directly comparable financial measure stated in
accordance with GAAP. Investors are encouraged to review the related GAAP
financial measures and the reconciliation of non-GAAP financial measures to
their most directly comparable GAAP financial measures, and not to rely on any
single financial measure to evaluate our business. Adjusted EBITDA is presented
for supplemental informational purposes only, has limitations as an analytical
tool, and should not be considered in isolation or as a substitute for financial
information presented in accordance with GAAP.
Key Performance Metrics
In addition to the measures presented in our unaudited condensed consolidated
financial statements, management uses key performance metrics to help evaluate
our business, identify trends affecting our business, formulate business plans,
and make strategic decisions. Our key performance metrics include MTUs, LTUs,
Card Sign-Ups, Trading Volume, and Assets on Platform. Definitions of these key
performance metrics can be found below:
• Monthly Transacting User: any retail or institutional user who has engaged in
any revenue-generating activity or whose account otherwise generated revenue for
the Company in the trailing thirty days. MTUs presented for a quarter represent
the MTUs as of the last day of the respective quarter. MTUs presented as of the
end of a year represent the MTUs as of the last day of that year.
• Lifetime Transacting User: LTUs represent the cumulative number of unique MTUs
who have ever transacted on our platform and continue to maintain an open
account, measured since inception.
• Card Sign-Ups: the cumulative number of approved applications for the Gemini
Credit Card in the relevant period. Card Sign-Ups include customers who have
been approved to open an account, regardless of whether they have subsequently
activated or used their card or whether the account later remains open.
• Trading Volume: the total U.S. dollar equivalent value of spot matched trades
transacted between a buyer and seller through our platform during the period of
measurement.
• Assets on Platform: the total value of assets held on our platform and
includes digital assets in custody, staking, and exchange products, user
custodial fiat, and GUSD reserve assets.
For more information and a more detailed discussion of our Key Performance
Metrics, refer to the filings that we make with the Securities and Exchange
Commission from time to time, including our Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q.
Channels for Disclosure of Information
As a reminder, we announce material information to the public through filings
with the SEC, the investor relations page on our website (investors.gemini.com),
the blog on our website (www.gemini.com/blog), press releases, public conference
calls, public webcasts, our X account (@gemini), and our LinkedIn page. The
information disclosed in the foregoing channels could be deemed to be material
information and we use these channels for complying with our disclosure
obligations under Regulation FD. As such, we encourage investors, the media, and
others to monitor the channels listed above and to review the information
disclosed through such channels.
About Gemini
Gemini (NASDAQ: GEMI) is a global crypto and markets platform founded by Cameron
and Tyler Winklevoss in 2014. Gemini offers a wide range of crypto and markets
products and services for individuals and institutions. Gemini's simple,
reliable, and secure products are built to unlock the next era of financial,
creative, and personal freedom.
Contact
Investors
Gemini Investor Relations
Email: investors@gemini.com
Press
Gemini Press Team
Email: press@gemini.com