Gemini, the crypto exchange founded by the Winklevoss twins, has recorded a 52% jump in revenue for the third quarter, reaching nearly $50 million, according to its latest shareholder update.
The company, which went public in September, showcased strong revenue growth across multiple business segments. However, it also reported a net loss of $159.5 million, or $6.67 per share, which was significantly higher than analysts’ expectations of a $3.24 per-share loss, as per Bloomberg data.
Following the earnings release, Gemini’s stock (GEMI) plunged by almost 12% in after-hours trading, dropping below the $15 mark—its lowest level since the IPO.
Growth Drivers
Gemini attributed the surge in revenue to its expanding product portfolio and geographic reach. Transaction revenue rose 26% quarter-over-quarter to $26.3 million, supported by user activity and the introduction of new trading features.
The exchange also reported a 111% increase in services revenue, reaching $19.9 million, driven by its credit card, staking, and custody services.
Cameron Winklevoss, Gemini’s Co-Founder and President, said during the earnings call that the Gemini Credit Card had achieved record performance with over 100,000 active accounts and $350 million in quarterly transaction volume, more than doubling from the previous quarter.
New Product Launches
In August, Gemini launched a self-custody wallet designed to simplify access to Web3 applications, DeFi protocols, and on-chain services. The company also revealed plans to enter the prediction markets sector, aiming to rival existing players like Kalshi and Polymarket.
Mounting Expenses
Despite top-line growth, Gemini’s losses widened due to rising operational costs, primarily stock-based compensation and marketing expenses linked to its IPO. The company’s adjusted EBITDA stood at –$52.4 million.
Marshall Beard, Gemini’s COO, noted that spending in upcoming quarters will be “aligned with emerging market opportunities and performance trends.”
Get the weekly commit
New blockchain deep dives every week.
