Gemini’s first earnings report as a public company highlights strong revenue gains but also reveals deeper-than-expected losses that have weighed heavily on investor confidence.
Key Takeaways
- Gemini’s Q3 revenue rose 52 percent to $49.8 million, driven by trading and services activity.
- Net loss ballooned to $159.5 million, more than 75 percent higher than the same quarter last year.
- Operating expenses more than doubled to $171.4 million, largely due to IPO-related costs and increased marketing spend.
- Despite growth in trading volume and credit card activity, GEMI stock fell over 6 percent after hours, extending its post-IPO decline.
What Happened?
Crypto exchange Gemini released its first quarterly financial results since its Nasdaq debut in September 2025, reporting solid revenue growth but a deeper-than-expected net loss. The firm cited surging expenses related to going public, rising compensation costs, and growing marketing outlays as reasons for the widening losses.
📉 Gemini’s stock hits a record low after reporting Q3 losses of $159.5M, primarily from IPO-related costs.
— Crypto Hawk (@CryptoKelvin12) November 11, 2025
Despite the dip, co-founder Cameron Winklevoss signals a pivot toward a “crypto super app” to unify digital products.
Will this vision drive recovery? pic.twitter.com/1Ka6lL6O2a
Earnings Reveal Strong Growth but Sharper Losses
Gemini’s third-quarter net revenue climbed to $49.8 million, a 52 percent increase from the previous quarter. This was slightly above analysts’ consensus estimate of $47.4 million, according to Yahoo Finance.
- Transaction revenue rose 26 percent quarter-over-quarter to $26.3 million.
- Services revenue, including staking, custody, and its crypto credit card, surged 111 percent to $19.9 million.
- Trading volume hit $16.4 billion, the highest level in several years, mostly fueled by institutional activity.
Yet despite this growth, Gemini posted a net loss of $159.5 million, significantly deeper than the $90.2 million loss from a year earlier. On a per-share basis, the adjusted loss came in at $1.81, missing MarketBeat’s consensus estimate of $0.82 per share. The loss per GAAP accounting was even steeper at $6.67 per share, versus the expected $3.24.
IPO Expenses and Compensation Costs Drive Spending Surge
Gemini’s operating expenses more than doubled year-over-year to $171.4 million, up from $76.8 million. The company cited elevated costs associated with transitioning to a public company, including stock-based compensation and customer acquisition.
- Salaries and compensation rose to $82.5 million.
- Sales and marketing increased to $32.9 million, reflecting greater promotional efforts.
- Adjusted EBITDA came in at negative $52.4 million.
In its shareholder letter, Gemini stated:
Mixed Crypto Gains and Strategic Developments
Gemini reported a $106.8 million gain on digital assets, capitalizing on rising crypto prices. However, it also recorded an $83.1 million loss on related-party crypto loans, leading to mixed financial results from its crypto positions.
Meanwhile, Gemini’s credit card program surpassed 100,000 open accounts, generating over $350 million in quarterly spending, more than doubling from the prior quarter. The company also noted Q3 was its strongest quarter of user acquisition in more than three years.
Looking ahead, Gemini is seeking to broaden its product offerings, having filed earlier this month to launch a prediction markets business, including event contracts tied to sports and political outcomes.
Stock Slides Despite Revenue Beat
Investors reacted negatively to the widening losses. After closing the regular session up 4 percent at $16.84, GEMI shares dropped 6.18 percent in after-hours trading to $15.80, according to Google Finance data. The stock has halved in value since its September IPO.
Gemini’s market capitalization stood at $1.98 billion following the earnings release. The stock traded between $16.11 and $17.23 during the day before sliding post-market.
CoinLaw’s Takeaway
In my experience, this kind of report is a reality check for investors who might have been swept up in IPO excitement. Yes, the revenue growth is impressive, especially in services and user acquisition, but massive operating costs and IPO-related expenses are now dragging on the company. I found the crypto-related gains vs losses particularly telling, Gemini is still finding its footing in managing risk while scaling up. Unless it reins in costs and moves closer to breakeven, the market is unlikely to reward revenue growth alone. I’ll be watching closely to see if Gemini can shift from spending to sustainable growth in the quarters ahead.
