Gemini reported a 37% year-over-year increase in second-quarter revenue to $45.5 million, but the cryptocurrency exchange recorded a $107.7 million net loss as trading activity weakened sharply. Exchange revenue fell 38% to $12.5 million while trading volume declined to $3.8 billion from $11.3 billion a year earlier. Growth in services revenue, particularly from credit cards and staking, provided some offset, although a $16.1 million provision related to an identity fraud event significantly increased transaction losses.
Gemini Revenue Growth Masks Trading Weakness
Cryptocurrency exchange Gemini recorded strong overall revenue growth during the second quarter, but the results also highlighted the challenges facing its core trading business.
The company reported $45.5 million in quarterly revenue, representing a 37% increase from the same period a year earlier.
Despite the revenue growth, Gemini posted a $107.7 million net loss, reflecting weaker exchange activity, higher transaction losses and continued operating expenses.
The results show the company’s increasing reliance on financial services beyond traditional cryptocurrency trading.
Exchange Revenue Falls 38%
Gemini’s exchange business experienced a significant decline during the quarter.
Exchange revenue fell 38% year over year to $12.5 million, while trading volume declined to approximately $3.8 billion from $11.3 billion in the second quarter of 2025.
The sharp reduction in trading activity placed pressure on one of Gemini’s traditional sources of revenue.
The decline also highlights the difficulty cryptocurrency exchanges face when market activity weakens, as trading-based income can fluctuate substantially depending on investor participation and transaction volumes.
Credit Cards and Staking Drive Services Growth
Gemini’s services business provided a significant counterweight to the decline in exchange revenue.
Services revenue increased 149% to $23.5 million during the quarter.
Credit card revenue was the largest contributor, increasing 231% to $16.2 million.
Staking revenue also increased by 50% to $4 million, demonstrating the growing contribution of yield-generating digital asset services to Gemini’s business.
Including interest income, services revenue and interest income totaled approximately $26 million.
The results suggest Gemini is gradually diversifying its revenue base beyond cryptocurrency trading.
Identity Fraud Event Raises Credit Losses
Gemini’s transaction losses increased sharply during the quarter.
Transaction losses reached $20.1 million, compared with $3.6 million a year earlier.
The company attributed most of the increase to a $16.1 million provision for credit losses associated with an identity fraud event involving its credit card portfolio.
Gemini said the elevated provision was concentrated among affected accounts and did not represent broader deterioration across its credit card portfolio.
The development nevertheless added significant pressure to the company’s quarterly profitability.
Cost-Cutting Continues
Gemini’s operating expenses increased 24% year over year to $122.4 million.
However, expenses declined 15% compared with the first quarter, indicating that previously announced cost-cutting measures are beginning to reduce the company’s quarterly expense burden.
The reduction in operating expenses provides some support for Gemini’s efforts to manage its cost structure while developing additional sources of revenue.
The company’s ability to control expenses could become increasingly important if trading activity remains below previous levels.
Investors React to Mixed Results
Gemini’s stock initially responded positively to the quarterly results.
Shares increased approximately 3% during regular trading on Thursday, but subsequently fell nearly 5% in premarket trading on Friday following the earnings release, according to Yahoo Finance data.
The market reaction reflects the mixed nature of the results, with strong growth in services revenue offset by declining exchange activity and a substantial net loss.
Diversification Becomes Increasingly Important
Gemini’s second-quarter performance illustrates the importance of diversification for cryptocurrency exchanges operating in an increasingly competitive market.
Credit card services and staking generated significant growth even as traditional exchange revenue declined sharply.
The company’s results also demonstrate the risks associated with expanding into financial products, as credit-related businesses can introduce exposure to fraud and credit losses that are less prominent in pure trading operations.
As Gemini continues developing its broader financial services platform, the balance between recurring services revenue, trading activity and operating costs will remain important to its financial performance.
Closing Insights
Gemini’s second-quarter results present a mixed picture, with revenue growing 37% to $45.5 million while the company recorded a $107.7 million net loss. The sharp decline in exchange trading activity was partially offset by rapid growth in credit card and staking revenue, showing that diversification is becoming increasingly important to the company’s business model. At the same time, the $16.1 million credit-loss provision linked to an identity fraud event demonstrates the additional risks that accompany expansion into financial services. Gemini’s ability to sustain services growth while controlling expenses and rebuilding trading activity will be central to its path toward improved profitability.
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