Gemini Space Station, the crypto exchange founded by the Winklevoss twins, reported a 52% jump in Q3 revenue growth since its September initial public offering (IPO), but the good news was overshadowed by a net loss that was far steeper than analysts expected.
The company, whose shares (GEMI) tumbled as much as 12% in post-market trading to an all-time low below $15, posted a net loss of $159.5 million, or $6.67 per share. This loss significantly exceeded the $3.24 loss per share anticipated by analysts, according to a Bloomberg survey.
Despite the mounting losses, the exchange highlighted its performance in its latest shareholder letter, noting it netted nearly $50 million—a 52% growth from the previous quarter.
Key drivers of this revenue included: Increased 26% quarter-over-quarter to $26.3 million on the back of new features and market expansion and increased services revenue which Surged 111% to $19.9 million, reflecting a push toward business diversification.
Cameron Winklevoss, President and Co-Founder of Gemini, pointed to the success of its credit card product on the earnings call. “The Gemini Credit Card delivered record performance, surpassing 100,000 open accounts and more than $350 million in quarterly transaction volume, more than doubling quarter over quarter,” he said.
The New York-based firm attributed the overall services surge to “growing contributions from credit card, staking, and custody products.” The company also introduced a self-custody wallet in August and is preparing to launch prediction market contracts to compete with Kalshi and Polymarket.
The substantial $159.5 million Q3 loss was primarily due to a doubling of operating expenses compared to the same period last year. The costs were largely attributed to stock-based compensation and marketing efforts related to the September IPO. This pushed the adjusted EBITDA to a negative $52.4 million.
