Gemini Space Station Q1 Earnings Call Highlights

Key Points

• Gemini’s Q1 revenue rose 42% year over year to $50.3 million even as crypto trading volumes fell sharply, showing the company is increasingly relying on non-trading businesses to drive growth.
• Services revenue became a much bigger part of the mix, up 122% to $24.4 million and nearly half of total revenue, led by a 300% jump in credit card revenue and strong growth in OTC and prediction markets.
• Losses narrowed and the founders backed the company with a $100 million investment, while Gemini also highlighted new regulatory licenses and product expansion plans aimed at building a broader “markets company” beyond crypto trading.

Gemini Space Station NASDAQ: GEMI reported higher first-quarter revenue as the crypto platform said it is moving to diversify beyond digital asset trading through credit cards, over-the-counter trading, prediction markets and planned future products.

On the company’s first-quarter 2026 earnings call, co-founder and President Cameron Winklevoss said Gemini has made “meaningful progress” toward its goal of becoming what he described as a “markets company,” rather than a business tied primarily to crypto market cycles. Interim CFO Danijela Stojanovic said total revenue rose 42% year-over-year to $50.3 million, even as crypto trading activity weakened materially from the prior-year period.

“This revenue growth was achieved against a backdrop of materially lower crypto trading volumes than Q1 of 2025,” Stojanovic said.

Revenue Rises Despite Lower Trading Volume

Gemini’s transaction revenue was $24.1 million, roughly stable from a year earlier. Within that category, exchange revenue fell 27% year-over-year to $17.2 million, reflecting lower crypto market activity. Total spot trading volume dropped 53% to $6.3 billion from $13.5 billion in the first quarter of 2025.

Stojanovic said the smaller decline in exchange revenue compared with trading volume reflected “continued improvement” in Gemini’s fee economics.

OTC revenue increased to $6.3 million from $0.1 million in the prior-year quarter. Stojanovic attributed the performance to both episodic client demand and structural improvements in the business, including new institutional clients added through Gemini’s eOTC API program. She cautioned that OTC activity can be “somewhat lumpy” and said investors should not assume the same level of episodic large trades every quarter.

Prediction markets, which Gemini launched in December 2025, contributed $0.4 million to transaction revenue in their first full quarter. Stojanovic said April prediction market volume increased 78% month-over-month, and the platform has surpassed 100 million contracts traded across more than 20,000 traders since launch.

Services Revenue Becomes Larger Part of Business

Services revenue and interest income totaled $24.4 million, up 122% year-over-year, and accounted for 49% of total revenue compared with 31% in the first quarter of 2025. Stojanovic said the shift is central to Gemini’s strategy of building a business less dependent on crypto market cycles.

The Gemini credit card was a major contributor. Credit card revenue rose nearly 300% year-over-year to $14.7 million. Gemini ended the quarter with more than 154,000 open card accounts, up 111,000 from a year earlier. Managed receivables increased to $217 million from $69 million.

Advisory fee revenue was $2.7 million, reflecting an advisory services agreement with a strategic customer entered into during the third quarter of 2025. Custodial fee revenue was $1.9 million, roughly flat year-over-year. Staking revenue fell 31% to $2.1 million, which Stojanovic attributed to lower crypto asset prices and reduced staking yields compared with elevated levels in early 2025.

Loss Narrows, Costs Remain in Focus

Gemini posted a net loss of $109 million, compared with a net loss of $149.3 million in the first quarter of 2025. Adjusted EBITDA was a loss of $59.9 million, compared with a loss of $92.2 million in the fourth quarter of 2025 and a loss of $61.6 million in the prior-year quarter.

Total operating expenses were $144.5 million, up 73% year-over-year. Stojanovic said the figure included one-time and non-cash items, including $24.2 million of stock-based compensation and $6.5 million of severance and related payroll taxes tied to a roughly 30% workforce reduction completed in the quarter.

Headcount at quarter-end was approximately 441. Stojanovic said the restructuring began flowing through results in the first quarter and will be more fully reflected in the second quarter as Gemini enters a lower cost run rate.

Transaction losses increased to $11.1 million from $4.1 million a year earlier. The increase included a $4.6 million provision for expected credit losses on the credit card portfolio, a $4.1 million credit card fraud reserve and $2.4 million in ACH and other transaction losses. In response to analyst questions, Stojanovic said the fraud charge related to a discrete event that was identified, contained and fully reserved for during the quarter. She said Gemini implemented additional controls and monitoring enhancements, while declining to discuss the mechanics of the incident for security reasons.

Founders Invest $100 Million in Gemini

Cameron Winklevoss said Gemini’s share price does not reflect the company’s current position or recent product launches. He noted that Bitcoin is down roughly 30% since Gemini’s initial public offering and said the company remains tied to the crypto cycle “to some degree.”

Gemini said Winklevoss Capital made a $100 million strategic investment in the company at $14 per share of Class A common stock, funded in Bitcoin. Cameron Winklevoss said the investment reflects the founders’ belief that Gemini stock is “significantly undervalued.”

In response to an analyst question, he said the funds will support existing products and products Gemini hopes to bring to market, including equities. He also pointed to Gemini’s prediction markets and its regulatory licenses as developments he believes are not reflected in the stock price.

Regulatory Licenses and New Products Shape Strategy

Co-founder Tyler Winklevoss said Gemini received a derivatives clearing organization license from the Commodity Futures Trading Commission in April. He said the DCO license, together with Gemini’s designated contract market license received in December 2025, positions the company to build an end-to-end marketplace in-house for prediction market and event contract trading.

Tyler Winklevoss said the DCO license also positions Gemini for potential future offerings, including perpetual contracts, if a regulated U.S. path develops. He said most price discovery in Bitcoin currently occurs in perpetuals markets offshore and on unregulated exchanges.

The company also highlighted its launch of an agentic trading tool through a regulated U.S.-based exchange. Tyler Winklevoss said the tool allows customers to connect AI agents, including Claude and ChatGPT, to Gemini’s API to place trades, monitor markets and manage risk autonomously.

Gemini did not provide formal revenue guidance, citing continued macro uncertainty. Stojanovic said the company expects cash compensation, excluding stock-based compensation and restructuring charges, to decline 15% to 20% relative to 2025 levels. She said full-year stock-based compensation is expected to total $100 million to $115 million, while combined technology and general and administrative expenses are expected to range from $155 million to $190 million.

Gemini ended the quarter with $215.6 million in cash and cash equivalents. Stojanovic said the company’s priorities for the rest of 2026 are revenue growth, diversification away from digital asset trading, cost discipline and continued investment in products including the card and prediction markets.

About Gemini Space Station NASDAQ: GEMI

Our mission is to unlock the next era of financial, creative, and personal freedom. Gemini envisions a future where crypto will redesign the global financial system, the internet, and money in a way that provides greater choice, independence, and opportunity for all. As a trusted bridge between the traditional financial system and the emerging cryptoeconomy, we are providing access for individuals and institutions to a decentralized future that is more open, fair, and secure. Gemini was founded in 2014 to be the most trusted, secure, and easy way to buy, sell, and store crypto assets.

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