Gemini Space Station Q3 2026 Earnings Results & Report

Gemini Space Station EPS Results

• Actual EPS: -$0.46
• Consensus EPS: -$1.13
• Beat/Miss: Beat by +$0.67
• One Year Ago EPS: N/A
• EPS Beat Rate: 1 of last 5 quarters

Gemini Space Station Revenue Results

• Actual Revenue: $40.88 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Gemini Space Station (NASDAQ:GEMI) operates a cryptocurrency platform offering services to individual and institutional customers. Its products include digital-asset trading and custody, along with tools and services for institutions.

Founded in 2014 by Cameron and Tyler Winklevoss, the company is based in New York. Gemini also issues the Gemini dollar, a U.S. dollar–pegged stablecoin.

Gemini serves customers in the United States and select international markets, with product availability varying by location and local regulations.

Gemini Space Station Q3 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Revenue fell 19% year over year to $40.9 million as retail trading and large OTC transactions weakened; trading volume was down 73% year over year, despite a sequential increase in institutional activity.
• Positive Sentiment: Operating expenses declined 30% year over year for a third consecutive quarter, and adjusted operating loss narrowed to $39 million. Management also lowered its full-year marketing expense outlook, though it cautioned that adjusted EBITDA benefited from a $25.7 million crypto-related gain in the quarter.
• Negative Sentiment: Gemini’s credit card revenue rose 82% year over year, but card users and receivables declined sequentially, and card provision expense remained significant. Management cited capital constraints and emphasized that growth must meet return targets after rewards, funding, credit losses, and other costs.
• Neutral Sentiment: Gemini expanded into prediction markets, derivatives, and U.S. stock trading, and is pursuing distribution partnerships; however, prediction-market revenue remains modest and the company said these launches still need to translate into sustained customer adoption and attractive economics.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to the Gemini third quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. Please be advised that today's conference is being recorded. I would now like to hand the conference over to Ryan Todd, Head of Investor Relations. Sir, please go ahead.

[Ryan Todd, Head of Investor Relations at Gemini]

Good morning, and thank you for joining Gemini's third quarter 2026 earnings call. My name is Ryan Todd, Head of Investor Relations at Gemini. Joining me on the call today are Gemini's Co-Founders, Cameron and Tyler Winklevoss, and our Interim CFO, Danijela Stojanovic. Yesterday, we released our third quarter 2026 financial results. During today's call, we may make forward-looking statements which may vary materially from actual results and are based on management's current expectations, forecasts, and assumptions. Information concerning the risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings. Our discussion today will also include certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings presentation on our investor relations website and on the SEC's website. Non-GAAP financial measures should be considered in addition to, not as a substitute for GAAP measures.

[Ryan Todd, Head of Investor Relations at Gemini]

We'll start today's call with prepared remarks and then turn to questions. With that, let me turn the call over to our founders, Cameron and Tyler.

[Cameron Winklevoss, Co-Founder at Gemini]

Thanks, Ryan. Good morning, everyone. When we introduced Gemini 2.0 earlier this year, we said we were building a super app for the future of money and markets. The idea is one place to buy, sell, hold, earn, and spend, built on regulated infrastructure that we own and operate ourselves. That hasn't changed. A platform of this breadth takes time to build, and we believe we're making real progress toward it. Over the past year, we've delivered much of what we set out to do. We launched our own prediction marketplace, as well as stood up our own derivatives exchange and clearing house, which now clears every Gemini event contract. We also added commission-free U.S. stock trading, margin trading, a rebuilt advanced trading experience, and new tools for developers and AI agents.

[Cameron Winklevoss, Co-Founder at Gemini]

All of that sits alongside our core products, which we continue to enhance, our crypto exchange, custody, staking, and the Gemini Credit Card. That said, we are very clear-eyed about where the business is today and the road still ahead of us. Revenue declined this quarter, and we believe our results don't yet fully reflect what we built this year. Broadening a crypto exchange into a platform people use for more of their financial lives doesn't happen in a quarter, and it doesn't happen without discipline. It also takes the willingness to change what isn't working, and we are demonstrating that willingness. Operating expenses declined for a third consecutive quarter, helped by keeping marketing spend to a minimum. As we invest in growth, we expect some of that spending will return, and we intend to be disciplined about where it goes.

[Cameron Winklevoss, Co-Founder at Gemini]

Distribution also continues to be a key focus of ours, bringing our markets and the regulated exchange and clearing house behind them to more customers through new partners. In August, we announced a non-binding letter of intent with Apex Fintech Solutions, and we are in active discussions with a number of other brokerages, FCMs, and trading platforms that want regulated access to event contracts and derivatives, which we believe we are well-positioned to provide. Now, over to Tyler.

[Tyler Winklevoss, Co-Founder at Gemini]

Thanks, Cameron. Tyler here. For most of the past year, we viewed our job as builders. It was a demanding year, and we are grateful to our team, our customers, and our shareholders for their commitment throughout it. With much of the product and licensing work behind us, our focus now shifts from adding products to deepening our relationships with the people who use them.

[Tyler Winklevoss, Co-Founder at Gemini]

We want to earn a bigger presence in each of our customers' financial lives. In practice, that means more customers actively using more than one Gemini product and more customers proactively choosing Gemini as the place they want to keep their money and assets. We continue to believe that starts with trust. People consolidate their financial lives with the institutions they rely on most, and earning that trust has been foundational to Gemini since 2014. That work is never finished, and we hold ourselves to that standard. This quarter, we made MPC infrastructure standard for every new Gemini custody account and for exchange balances. It's one more step toward being the account people can count on with their money and assets. We know the measure of all this is results, not just launches.

[Tyler Winklevoss, Co-Founder at Gemini]

On our next call, we will share our priorities for 2027 and the measures we will use to track our progress. With that, I will turn the call over to our interim CFO, Danijela, to walk through the quarter in more detail.

[Danijela Stojanovic, Interim CFO at Gemini]

Thanks, Cameron and Tyler. Good morning, everyone. Our third quarter results reflect continued progress in reducing our operating expenses alongside ongoing pressure on revenue. Total revenue was $40.9 million, down 19% year-over-year and 10% sequentially. Stronger institutional exchange activity was offset by lower retail trading and fewer large OTC transactions. Services revenue also declined, partly because the advisory warrant arrangement we discussed last quarter reached the end of its recognition period. Operating expenses declined for the third consecutive quarter, reaching $119.9 million. GAAP operating loss was $79 million, up 3% from $76.9 million in the second quarter, as the decline in revenue exceeded the reduction in operating expenses. Adjusted operating loss narrowed to $39 million, an improvement of 42% year-over-year and 21% sequentially. I'll now walk through the principal drivers. Net revenue was $39.2 million. Transaction revenue was $15.9 million, down 40% year-over-year and 10% sequentially.

[Danijela Stojanovic, Interim CFO at Gemini]

Exchange revenue increased 7% sequentially to $13.4 million, although it remained 47% below the prior year quarter. Trading volume was $4.5 billion, up 18% from the second quarter and down 73% year-over-year. Institutional trading volume increased sequentially, while retail volume declined. The composition of that volume matters. Approximately 26% involved transactions between external customers and our affiliated market maker, which began operating during the quarter. This activity supports liquidity and facilitates customer trading, but generally produces lower consolidated exchange fee revenue per dollar of volume because fees charged to the affiliate are eliminated in consolidation. OTC revenue was $1.7 million, up 60% year-over-year and down 64% sequentially. As we discussed on our last call, this business can vary significantly with the timing and size of institutional transactions. We saw fewer large trades in this quarter than in the first half of the year.

[Danijela Stojanovic, Interim CFO at Gemini]

Prediction markets revenue increased 52% sequentially to approximately $0.8 million net of incentives. Revenue remains modest relative to the broader business, and our focus is on translating the investment in marketplace liquidity and infrastructure into greater participation and fee generation. Turning to services revenue and interest income, which totaled $23.3 million, down 10% sequentially and 1% year-over-year. Most of that sequential decline came from advisory fee revenue, which fell from $2.7 million to $0.6 million. This was the expected conclusion of the compensatory warrant recognition period, which we discussed last quarter. These revenue sources continue to represent 59% of net revenue compared with 47% a year ago. Credit card revenue was $15.5 million, up 82% year-over-year and down 4% sequentially. Card transaction volume declined 10% sequentially, while card interest revenue increased 3% as customers continue to carry balances.

[Danijela Stojanovic, Interim CFO at Gemini]

Receivables ended the quarter at $202.2 million, down 8% sequentially. Card pre-provision net revenue, which represents card revenue less funding interest expense and crypto rewards, increased 6% sequentially to $5.8 million. After provision expense, this contribution measure was a loss of $3.4 million compared with a loss of $10.6 million in the second quarter. The improvement primarily reflects lower provision expense, which declined to $9.2 million from $16.1 million. Card MTUs were approximately 102,000 at quarter end, down 4% sequentially and up 13% year-over-year. Staking revenue was $4.2 million, down 29% year-over-year, primarily reflecting lower underlying asset prices and up slightly sequentially. Custodial fee revenue was $0.9 million, down 70% year-over-year, reflecting lower average asset valuations and net asset outflows. Sequentially, custodial fee revenue increased from $0.6 million in the second quarter.

[Danijela Stojanovic, Interim CFO at Gemini]

Interest income declined to $2 million from $2.4 million in the second quarter. Turning to expenses. Total operating expenses declined 2% sequentially and 30% year-over-year to $119.9 million. Salaries and compensation totaled $56.4 million, including $32.7 million of stock-based compensation. The increase in stock-based compensation from $20.3 million in the second quarter reflected annual equity bonuses granted to company employees in the quarter. Compensation, excluding stock-based compensation, declined 15% sequentially and 36% year-over-year to $23.7 million, reflecting the continued benefit of our lower headcount base. Sales and marketing expenses declined 6% sequentially and 75% year-over-year to $8.3 million, reflecting a deliberate pullback in broad-based acquisition spending and promotional costs. As we discussed last quarter, we prioritized product development, marketplace liquidity, and regulated infrastructure while remaining selective about acquisition spending in a softer trading environment.

[Danijela Stojanovic, Interim CFO at Gemini]

We expect a measured increase in marketing investments in the fourth quarter to support adoption across our product offerings. Credit card rewards and promotional and referral incentives were $7.6 million, while marketing acquisition, brand spend, and other costs were approximately $0.7 million. Transaction losses declined to $10.6 million from $20.1 million in the second quarter. Of that, credit card provision expense was $9.2 million, down from $16.1 million. Card charge-offs increased to $11.5 million from $3.4 million. Most of that increase related to the first quarter fraud event. Those accounts contributed to elevated fraud-related delinquency in the second quarter, and we accelerated their charge-off during the quarter. Total 30+ day delinquency declined to 6% from 9.4%, partly reflecting the accelerated charge-off of confirmed fraud balances. Excluding the identified fraud accounts, delinquency was broadly stable at 3.4% compared with 3.3% in the second quarter.

[Danijela Stojanovic, Interim CFO at Gemini]

Technology and general and administrative expenses together were $39.4 million, broadly consistent with the second quarter. Turning to the bottom line, net loss narrowed to $58.6 million from $107.7 million in the second quarter, and a loss of $159.5 million a year ago. Adjusted EBITDA was a loss of $11.6 million compared with a loss of $74 million in the second quarter, and a loss of $52.4 million in the prior year. A large contributor to that sequential improvement was the swing from $25 million of net losses on crypto assets and related party crypto loans in Q2 to $25.7 million of net gains in Q3. Our Adjusted EBITDA measure includes these gains and losses, which can create substantial quarterly volatility.

[Danijela Stojanovic, Interim CFO at Gemini]

Adjusted operating loss narrowed to $39 million from $49.3 million in the second quarter, reflecting lower operating expenses, excluding the adjustments detailed in our non-GAAP reconciliation provided on our investor relations website. Monthly transacting users were 577,000, and assets on platform increased to $13.4 billion from $8.4 billion at the end of the second quarter, mainly reflecting price appreciation in underlying assets. We ended the quarter with $194.1 million in cash and cash equivalents, compared with $188.6 million at June 30th. Proceeds from sales of Bitcoin received and our May PIPE financing offset cash used in operations during the quarter. Subsequent to quarter end, we increased our credit facility with Galaxy by $35 million, providing additional flexibility to support planned product expansion. Turning to our outlook, we continue to expect cash compensation, excluding stock-based compensation and restructuring charges, to decline 15%-20% from 2025 levels.

[Danijela Stojanovic, Interim CFO at Gemini]

With greater visibility into fourth quarter expenses, we now expect full year stock-based compensation of $100 million-$105 million, from $100 million-$115 million previously. We now expect full year tech and G&A expenses of $160 million-$170 million, raising the lower end of our previous range by $5 million while maintaining the upper end. On marketing, we expect a measured increase in brand and performance spending in the fourth quarter while remaining selective about expected returns. For the full year, we are lowering our marketing expense guidance, excluding rewards and promotions, to approximately 7%-10% of revenue, from 10%-15% previously. Before I turn it back to Ryan, let me close with some perspective. We have made meaningful changes to Gemini this year. We have reduced our cost base, broadened our product offering, and brought more of our market infrastructure in-house.

[Danijela Stojanovic, Interim CFO at Gemini]

Translating those changes into sustainable growth takes time. We are continuing to refine where we focus, how we reach customers, and where we commit resources as we learn what is gaining traction. Some investments will need more time to prove out, and others may need to change. We take our responsibility as stewards of shareholder capital seriously, and we intend to be disciplined in those decisions and candid about our progress. There is more work ahead of us, but we have a broader set of capabilities to build on and a clear view of the financial progress we are accountable for delivering. Thanks so much for listening. We appreciate your continued engagement, and we welcome your questions. With that, I will hand it back to Ryan to open up the Q&A.

[Ryan Todd, Head of Investor Relations at Gemini]

Thanks, Danijela. We will now turn to Q&A. Questions were submitted in writing yesterday after the release of our third quarter results. Due to Outlook outages yesterday, we unfortunately had limited participation this quarter, so we will take a couple follow-up questions from analysts to round out the questions. Our first question comes from Michael Cyprys from Morgan Stanley. On crypto trading and market share, crypto volumes have improved, but most of that was driven by institutional activity, while retail was down for the quarter. Are you seeing any stabilization in activity on retail? What do you think needs to change to get that growing again?

[Danijela Stojanovic, Interim CFO at Gemini]

Yeah, so I can take that one. Thank you for the question. The sequential improvement in volume was primarily institutional, while retail activity remains softer, as you note. I will say one encouraging sign is that the proportion of existing traders returning the following quarter has remained relatively consistent. The larger challenge has really been attracting new traders, particularly following the substantial reduction in acquisition spending this year. Our response really is to rebuild acquisition through targeted marketing, while doing more to activate and re-engage our existing customers. That includes customer with funded accounts who are not trading, as well as card and prediction users who could benefit from our broader offering. Likewise, most of our retail exchange revenue comes from the simple trading experience, so that gives us a clear focus for product improvements.

[Danijela Stojanovic, Interim CFO at Gemini]

We are working to simplify that experience, and we will continue to evaluate pricing to support conversion and repeat activity. Lastly, of course, a stronger market would help, but we need to drive customer growth and engagement without relying on a market recovery.

[Ryan Todd, Head of Investor Relations at Gemini]

As a follow-up question for Michael, good to see revenue up on card year-over-year. Customer acquisition has slowed. We have seen pressure on fraud losses and delinquencies. How are you thinking about accelerating growth while maintaining attractive economics, and to what extent are you seeing the card translate into more activity across the broader platform?

[Danijela Stojanovic, Interim CFO at Gemini]

Thanks, Michael. You are right that account growth has been broadly flat for a few quarters. Available funding capacity, as well as the corporate capital required to support receivables, have in part constrained expansion. We also have to balance capital committed to the card with investments in new products and the broader platform, while at the same time, fraud losses have also reinforced the need to really prioritize fraud controls, credit quality, and returns. Revenue growth really reflects the portfolio expansion last year, but revenue alone does not establish necessarily attractive economics. We want to grow where expected revenue supports an acceptable return. That includes after rewards, funding costs, credit losses, as well as acquisition and servicing costs. As we mentioned previously as well, every cardholder is also a Gemini platform customer, with crypto rewards providing a natural connection to our broader offering.

[Danijela Stojanovic, Interim CFO at Gemini]

We are evaluating how to make those rewards more competitive and effective at attracting customers, encouraging regular card use, and deepening that deeper engagement across Gemini while maintaining disciplined rewards cost. While we do not disclose specific cohort metrics, cardholders generally do show stronger retention and greater cross-product engagement than customers without a card. Our priority remains to build on that engagement and ensure that those relationships generate attractive returns in the long run.

[Ryan Todd, Head of Investor Relations at Gemini]

Our next question comes from John Todaro at Needham. How do you view regulatory risk around predictions, specifically related to sports, given the latest rulings in some states against this category?

[Tyler Winklevoss, Co-Founder at Gemini]

Thanks for the question. This is Tyler speaking. With respect to our prediction market offering, we have sports as a category, but it's just one category of many categories we offer for predictions. We have crypto, we have politics, we have economics or economy, we have culture, weather, and many other prediction market categories. The future or success of Gemini Predictions will not rise and fall on one category alone. With respect to sports as a category specifically, we are confident and believe in the federal licensing regime that we have. We have licenses with the CFTC. We believe that long term, the law will resolve in our favor and confirm that we have the appropriate licenses to offer sports contracts and predictions. But like I said, in the case that that does not happen, our prediction market offering is much greater than sports.

[Tyler Winklevoss, Co-Founder at Gemini]

It's just getting started. If we don't offer sports, we still believe we'll have a very large and exciting offering for our customers.

[Ryan Todd, Head of Investor Relations at Gemini]

Our final questions come from James Yaro from Goldman Sachs. The first question, Gemini has meaningfully reduced its expense base in 2026 year-to-date. What levers can Gemini continue to pull to generate incremental efficiency from here, and how do you balance that versus investments for growth?

[Danijela Stojanovic, Interim CFO at Gemini]

Thanks, James. The expense reduction is a tangible accomplishment this year, particularly as we expanded the product offerings with fewer resources. Revenue growth has been the harder part for us, and we recognize that cost discipline needs to be paired with stronger customer acquisition and adoption. There are further efficiency opportunities, amongst others in cloud and infrastructure usage, working on simplifying processes, and really focusing on how we allocate resources across products. We are also evaluating partnerships and potentially less capital-intensive operating models that could improve returns. At the same time, this year's marketing spend should not be viewed as a sustainable run rate if we want to grow. We acknowledge that, and we need to reinvest selectively in distribution and acquisition while measuring conversion, retention, and customer contribution as we increase that spending.

[Danijela Stojanovic, Interim CFO at Gemini]

Our objective is really to preserve the benefits of a leaner organization while directing investment towards growth, and that means sequencing spending carefully and adjusting resources and investments as we learn what delivers results.

[Ryan Todd, Head of Investor Relations at Gemini]

The final question from James. As Gemini continues to expand on offerings across prediction markets and equities, what metrics should investors monitor to assess adoption, and how are you weighing the long-term ROI of these asset class expansions?

[Danijela Stojanovic, Interim CFO at Gemini]

Yeah, there are really several metrics to focus on, and we would focus on whether customers fund their accounts, leave more money on the platform, and return to use the product regularly. Really, funded accounts, customer balances, and net inflows, repeat usage, and adoption of multiple products, excuse me, are more meaningful indicators than account openings or initial trial alone. For prediction, we would also look at active traders and revenue net of rebates alongside just liquidity and incentive costs. For equities, that would mean assets on the platform and repeat trading that will help us assess whether the offering is becoming part of customers' ongoing financial activity. The long-term investment case is that, again, a broader offering can attract customers, retain more of their assets, and deepen the engagement across Gemini.

[Danijela Stojanovic, Interim CFO at Gemini]

But we need to translate that into attractive economics, and we assess direct revenue and incremental contribution across products against that acquisition cost, as well as operating expenses and the capital requirements, while scaling investments as adoption and returns justify it.

[Operator]

Thank you. Ladies and gentlemen, this will conclude our question and answer session. This will also conclude today's conference call. Thank you for your participation.

Participants

Analysts

• Ryan Todd, Head of Investor Relations at Gemini
• Cameron Winklevoss, Co-Founder at Gemini
• Tyler Winklevoss, Co-Founder at Gemini
• Danijela Stojanovic, Interim CFO at Gemini