Gemini Space Station Q2 Earnings Call Highlights

Revenue grew despite weaker crypto trading: Q2 revenue rose 37% year over year to $45.5 million, driven by services, interest income, OTC trading and card revenue. Net loss improved to $107.7 million, although adjusted EBITDA worsened due largely to non-cash losses on Bitcoin holdings. Trading activity weakened while new businesses expanded: Exchange revenue fell 38% and spot trading volume dropped 66%, but OTC revenue surged 671% and prediction-market activity continued to grow. Gemini also launched commission-free U.S. equities and ETF trading, expanding access to more than 5,000 markets. Fraud provisions pressured the card business, while costs declined: Card revenue rose 231%, but transaction losses increased sharply because of an identity-fraud incident and related credit-loss provisions. Operating expenses fell 15% sequentially after restructuring, and Gemini is pursuing further product expansion, including potential U.S. crypto perpetual futures.

Gemini Space Station NASDAQ: GEMI reported second-quarter revenue growth despite weaker crypto trading activity, as expanding services revenue, over-the-counter trading and new product offerings offset a decline in exchange revenue. The company also highlighted lower operating costs following restructuring actions, while a fraud-related credit-card provision weighed on results. Total revenue rose 37% year over year to $45.5 million, while net revenue increased 33% to $43.7 million, Interim CFO Danijela Stojanovic said. Services revenue and interest income reached $26 million, up 117% from a year earlier and representing 59% of net revenue, compared with 50% in the first quarter.

Gemini reported a net loss of $107.7 million, improving from a $133.2 million loss in the second quarter of 2025. Adjusted EBITDA was a loss of $74 million, compared with a $59.9 million loss in the prior quarter. Stojanovic said the adjusted EBITDA decline was primarily driven by non-cash mark-to-market losses on Bitcoin holdings after Bitcoin prices fell during the quarter.

Transaction revenue totaled $17.8 million, down 15% year over year and 26% sequentially. Exchange revenue fell 38% from a year earlier to $12.5 million as crypto trading activity remained weak. Total spot trading volume declined 66% to $3.8 billion from $11.3 billion in the prior-year quarter, with institutional activity accounting for nearly 90% of the volume decrease, Stojanovic said. Over-the-counter revenue, however, climbed 671% year over year to $4.7 million. The company attributed the increase partly to episodic institutional demand during periods of heightened crypto-market volatility, while noting that OTC results could remain variable because of the nature of large institutional trades.

Prediction markets contributed $500,000 in transaction revenue, up 18% from the first quarter. Event contracts traded increased 93% sequentially. Gemini said it prioritized order-book depth and liquidity over near-term fee capture, with rebates under new maker and taker incentive programs accounting for roughly 20% of gross prediction-market fees. “We continue to see predictions as the largest near-term growth opportunity on the platform,” Co-Founder and President Cameron Winklevoss said, particularly heading into the second-half sports season. The company tripled its number of contracted prediction-market makers since the first quarter, introduced three maker and taker incentive programs, enhanced its predictions API and added AI-powered personalized insights. Gemini also began operating its derivatives clearinghouse and settling its own prediction-market contracts after receiving a derivati...