Gemini, the crypto exchange operator, reported a $159.5 million net loss for Q3 2025, missing analyst expectations due to elevated IPO costs, marketing expenses, and stock-based compensation. Despite this, revenue grew 52% quarter-over-quarter to $49.8 million, driven by record trading volumes and credit card activity.
Gemini’s Q3 net loss hit $159.5 million, exceeding forecasts amid higher operational costs.
Revenue increased 52% to $49.8 million, surpassing estimates with boosts from trading and services.
Trading volume reached $16.4 billion, the highest in years, while the credit card program saw over 100,000 accounts and $350 million in spend.
Gemini Q3 financial results reveal a $159.5M loss but strong growth in revenue and users. Explore trading surges, credit card success, and future profitability paths in this detailed analysis.
What Were Gemini’s Q3 Financial Results?
Gemini Q3 financial results showed a net loss of $159.5 million for the third quarter, primarily due to increased IPO-related expenses, expanded marketing efforts, and a significant rise in stock-based compensation. On an adjusted per-share basis, the loss amounted to $1.81, which fell short of the consensus estimate of $0.82 loss as reported by MarketBeat data. Despite the setback, the company’s net revenue climbed to $49.8 million, marking a 52% increase from the previous quarter and slightly exceeding the $47.4 million forecast compiled by Yahoo Finance.
Why Did Gemini Experience a Larger-Than-Expected Loss in Q3?
Gemini’s Q3 loss was amplified by a surge in operating expenses, which totaled $171.4 million for the period, outpacing the $49.8 million in net revenue generated. This discrepancy highlights ongoing challenges in scaling operations post-IPO, with costs driven by one-time charges and investments in growth areas. According to the company’s shareholder letter, these expenses included heavier marketing outlays to attract new users and elevated stock-based compensation to retain talent in a competitive crypto market.
Trading revenue contributed $26.3 million, up 26% from the prior quarter, reflecting heightened market activity. Services revenue, encompassing staking, custody, and the credit card business, jumped 111% to $19.9 million, underscoring diversification efforts. Trading volume hit $16.4 billion, the strongest in several years, fueled by institutional investors returning to the platform amid volatile crypto prices.
The credit card program emerged as a bright spot, surpassing 100,000 open accounts and processing over $350 million in quarterly spend—more than double the previous period’s figure. This growth powered user acquisition, marking Gemini’s strongest quarter in over three years, as stated in the shareholder letter. Approximately half of the revenue stemmed from trading fees, with the remainder from staking rewards, tokenized equity products, and card-related activities.
Compared to larger peers like Coinbase, which often reports net revenue in the hundreds of millions to over $1 billion, Gemini’s scale remains modest. However, the 52% quarter-over-quarter revenue growth demonstrates resilience. Google Finance data indicated the stock closed at $16.84 on Monday, up 4% during regular trading, but it declined to $15.80 after hours, down about 6%, extending a selloff that has halved the share price since its September debut. Intraday trading ranged from $16.11 to $17.23, leaving the market capitalization at approximately $1.98 billion.
Market reactions reflected concerns over persistent losses outpacing revenue, yet analysts note the potential for profitability as trading volumes stabilize. Gemini has reached out for comments on achieving adjusted profitability, emphasizing strategic expansions like a recent filing to launch a prediction-markets business, which could include event contracts for sports and political outcomes, pending regulatory approval.
Frequently Asked Questions
What Impacted Gemini’s User Acquisition in Q3?
Gemini’s user acquisition in Q3 reached its highest level in over three years, driven by surging credit card activity and increased institutional trading. The credit card program alone added momentum, with over 100,000 accounts and $350 million in spend, contributing to robust platform engagement and revenue diversification.
How Does Gemini Plan to Improve Profitability Moving Forward?
Gemini anticipates improved profitability through expanded services like staking and custody, alongside the potential rollout of prediction markets for events such as elections and sports. With trading volumes at multi-year highs and cost management in focus post-IPO, the company aims to align expenses with growing revenues for sustainable growth.
Key Takeaways
- Record Trading Volume: Gemini’s $16.4 billion in Q3 trading marked the highest in years, boosting transaction revenue by 26% to $26.3 million and signaling renewed institutional interest.
- Credit Card Success: Surpassing 100,000 accounts with $350 million in spend, the program doubled prior performance and drove the strongest user growth in over three years.
- Path to Profitability: Despite a $159.5 million loss, 52% revenue growth to $49.8 million highlights potential; focus on diversifying services and controlling expenses could accelerate breakeven.
Conclusion
Gemini’s Q3 financial results underscore a challenging yet promising period, with a $159.5 million net loss tempered by 52% revenue growth and record metrics in trading and credit card usage. As the crypto exchange navigates post-IPO adjustments and eyes expansions like prediction markets, strategic cost controls and user acquisition momentum position it for stronger performance ahead. Investors should monitor upcoming quarters for signs of adjusted profitability in this evolving market.