Overview
- Gemini reported third-quarter revenue of $40.9 million and platform trading volume of $4.5 billion, a roughly 73% drop from the prior year, while net loss narrowed to $58.6 million from $159.5 million.
- Operating expenses fell 30% to $119.9 million after sustained cost cuts, including job reductions and exits from some international markets, which management says drove most of the improvement.
- Spot trading rose 18% versus the prior quarter driven by institutional activity in Zcash, and the company said services such as card payments, stock trading and prediction markets are taking a larger share of revenue.
- The credit card business generated 82% more revenue year over year but charge-offs climbed to $11.5 million, partly tied to a previously disclosed fraud incident, and cash on hand declined to $194.1 million while platform assets rose to $13.4 billion.
- GEMI shares ticked up modestly after the report and investors should watch whether nascent diversification efforts, including a non-binding LOI with Apex and new AI integrations, can replace lost retail fee income without raising more operational or credit risk.