Aug 13, 2026, 4:31 PM ETFinancial Services

Gemini Space Station, Inc. — Q2 2026 Earnings Summary

GEMIGEMINI SPACE STATION INC

Financial Performance

Total revenue increased 37% year-over-year to $45.5 million, driven by a 149% YoY increase in services revenue to $23.5 million, offset by a 38% YoY drop in exchange transaction revenue to $12.5 million.
Net loss decreased 19% year-over-year to $107.7 million, compared to $133.2 million in Q2 2025.
Net loss per share (basic and diluted) was $(0.89), compared to $(27.08) in Q2 2025.
Adjusted EBITDA decreased to $(74.0) million from $(51.9) million in Q2 2025, primarily due to market-driven realized and unrealized losses on bitcoin received from a May 2026 private placement.
Total operating expenses increased 24% year-over-year to $122.4 million, driven by higher stock-based compensation and credit card-related costs, though they declined 15% sequentially from Q1 2026.
Operating loss improved 18% sequentially, marking the third consecutive quarter of improvement.
Cash and cash equivalents totaled $188.6 million as of June 30, 2026, down from $252.2 million in Q4 2025.
Transaction losses increased to $20.1 million year-over-year, primarily driven by a $16.1 million provision for credit losses on the credit card portfolio related to an identity fraud event.
Salaries and compensation increased 31% year-over-year to $48.2 million; excluding stock-based compensation, this category decreased 20% to $27.9 million.
Sales and marketing expenses decreased 45% year-over-year to $8.8 million, with discretionary marketing spend down 99% to $0.1 million.

The company is pursuing a strategy to build a "financial super app" with multiple revenue paths less sensitive to crypto market forces.
Management indicated continued focus on cost optimization initiatives, including the February 2026 reduction in force and exits from international markets.
The company plans to explore expanding its derivatives offering for U.S. customers to include crypto futures, options, and perpetual futures contracts.
Forward-looking statements highlight risks including regulatory uncertainty, crypto price volatility, and the potential for adverse developments in pending litigation.

Services Revenue: Increased 117% year-over-year to $26.0 million, driven by credit card and staking revenue.
- Credit card revenue surged 231% year-over-year to $16.2 million, driven by significant growth in the user base.
- Staking revenue increased 50% year-over-year to $4.0 million, reflecting expanded in-house staking validator capabilities.
- Advisory fee revenue was $2.7 million from a strategic customer agreement entered in Q3 2025.
- Custodial fee revenue dropped to $0.6 million from $1.9 million in Q2 2025 due to lower crypto asset prices and institutional custody outflows.
Transaction Revenue:
- OTC revenue increased to $4.7 million from $0.6 million in Q2 2025, driven by higher institutional client activity and eOTC platform expansion.
- Prediction markets revenue was $0.5 million, a new segment with event contracts up 93% quarter-over-quarter.
- Exchange revenue decreased 38% year-over-year to $12.5 million as total trading volume declined to $3.8 billion from $11.3 billion in Q2 2025.
New Product Launches:
- Commission-free stock trading launched on July 7, 2026, for U.S. customers in eligible states.
- Gemini's derivatives clearinghouse went live on August 4, 2026, following DCO approval in April 2026.
- Gemini Predictions set a new monthly volume record in each month of Q2 2026, with cumulative contracts traded surpassing 225 million since December 2025.

The crypto market remained soft, contributing to a 38% YoY drop in exchange revenue and a decline in total trading volume.
Assets on Platform decreased to $8.4 billion as of Q2 2026 from $18.2 billion in Q2 2025, reflecting lower crypto asset valuations and select institutional custody outflows.
Monthly Transacting Users (MTUs) increased 11% year-over-year to 580,000.
The company secured a Designated Contract Market (DCM) license in December 2025 and a Derivatives Clearing Organization (DCO) license in April 2026.

A significant identity fraud event in early 2026 led to a $16.1 million provision for credit losses on the credit card portfolio, impacting transaction losses.
The company faces risks related to crypto price volatility, which affected realized and unrealized gains/losses on crypto assets and receivables.
Regulatory risks include potential changes in federal or state law that could prevent the offering of event contracts or other products.
The company announced plans to wind down operations in the United Kingdom, European Union, other European jurisdictions, and Australia.

CEO Tyler Winklevoss stated that while there is work to be done, the results reflect ongoing efforts to reduce operating expenses and diversify revenue to build a more resilient company.
President Cameron Winklevoss highlighted the platform's transformation over the past nine months, noting customers now trust the platform with equities, predictions, and credit cards in addition to crypto.
Management expressed confidence that the elevated credit loss provision is concentrated within a specific fraud-related cohort and does not reflect broad-based deterioration in the underlying credit portfolio.

The company implemented additional fraud detection and account monitoring measures in response to the identified fraud activity.
Managed credit card receivables grew to $219.6 million at quarter-end from $93.5 million a year ago.
The company received a $75 million third-party loan and repaid $852.2 million in funding debt during the six months ended June 30, 2026.
Stock-based compensation was $20.3 million for the quarter, contributing to the year-over-year increase in salaries and compensation.
The company hosts a conference call on August 14, 2026, to discuss Q2 2026 results.