TLDR
- Gemini reported a 52% increase in revenue for its first post-IPO earnings.
- The company’s net loss for the quarter reached $159.5 million.
- Trading volumes rose to $16.4 billion, marking a 45% increase from the prior quarter.
- Services revenue now accounts for nearly 40% of Gemini’s total income.
- Gemini’s credit card surpassed 100,000 open accounts and $350 million in spending.
Gemini reported a 52% increase in revenue for its first earnings report following its IPO. However, Gemini stock fell more than 11% in after-hours trading. The company’s net loss, IPO expenses, and widening losses seemed to concern investors despite revenue growth.
Gemini Stock Falls Despite Solid Q3 Earnings
Gemini’s third-quarter revenue reached nearly $50 million, a significant rise from the previous quarter. This increase was driven by over $26 million in transaction fees and about $20 million from services. The company also saw record performance from its Gemini credit card and growing institutional staking services.
Trading volumes surged to $16.4 billion, up 45% from the prior quarter. Institutional activity played a key role, climbing nearly 50%. Services revenue now comprises nearly 40% of total income, up from under 30% a year earlier.
Despite strong revenue, Gemini posted a net loss of $159.5 million, or $6.67 per share. Much of the loss came from stock-based compensation and high marketing costs linked to its IPO. Adjusted EBITDA stood at a negative $52.4 million for the quarter.
Gemini’s expenses related to its IPO weighed heavily on the company’s balance sheet. Higher costs for stock compensation and marketing made it difficult for Gemini to maintain profitability. Investors focused on these losses, contributing to the drop in Gemini stock.
Gemini Launches New Products, Expands Operations
Gemini launched a self-custody wallet in the third quarter, adding to its growing portfolio. The company also secured a MiCA license in Europe and started operations in Australia in early October. Its Gemini credit card reached over 100,000 open accounts and saw spending exceed $350 million.
Staking balances grew to $741 million, contributing to Gemini’s expanding revenue base. The company expects services and interest revenue for the full year to hit between $60 million and $70 million. These growth areas may help offset some of the broader financial challenges Gemini faces.
Despite a strong revenue boost, Gemini stock continues to face pressure as investors focus on losses and rising IPO-related expenses. The decline in share price signals that investors are cautious about the company’s ability to achieve profitability in the short term.
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