Gemini Space Station, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue was $40.9 million, a 19% decrease year-over-year (YoY) from $50.6 million in Q3 2025, and a 10% decrease sequentially from $43.7 million in Q2 2026.
• Net revenue was $39.2 million, down 21% YoY from $49.8 million in Q3 2025.
• Exchange revenue declined 47% YoY to $13.4 million, driven by a 73% YoY drop in platform spot trading volume to $4.5 billion from $16.4 billion.
• Services revenue and interest income totaled $23.3 million, representing 59% of net revenue, compared to $23.4 million (47% of net revenue) in Q3 2025.
• Total operating expenses decreased 30% YoY to $119.9 million from $171.4 million, and 2% sequentially from $122.4 million in Q2 2026.
• Net loss narrowed 63% YoY to $58.6 million from $159.5 million; net loss per share (basic and diluted) was $0.46 compared to $6.67 in Q3 2025.
• Operating loss was $79.0 million, an improvement of 35% YoY from $120.8 million.
• Adjusted Operating Loss narrowed 42% YoY to $39.0 million, marking the fourth consecutive quarter of improvement.
• Adjusted EBITDA loss was $11.6 million, compared to a loss of $52.4 million in Q3 2025.
• Cash and cash equivalents totaled $194.1 million as of September 30, 2026, down from $252.2 million as of December 31, 2025.
• Assets on Platform were $13.4 billion as of September 30, 2026, down from $21.3 billion in Q3 2025.

Business Segments and Product Lines:

• Transaction revenue decreased 40% YoY to $15.9 million.
• OTC revenue increased 60% YoY to $1.7 million, driven by growth in electronic OTC (eOTC) client activity.
• Prediction markets revenue was $0.8 million, up 52% from $0.5 million in Q2 2026.
• Services revenue increased 7% YoY to $21.3 million.
• Credit card revenue increased 82% YoY to $15.5 million, driven by portfolio growth, though it decreased 4% sequentially.
• Staking revenue decreased 29% YoY to $4.2 million due to lower average staked asset balances and yields, but increased 3% sequentially.
• Advisory fee revenue was $0.6 million, down from $2.7 million in Q2 2026, following the completion of a recognition period for a compensatory warrant arrangement.
• Interest income was $2.0 million, down from $3.5 million in Q3 2025, reflecting lower custodial balances offset by margin lending fees.
• Salaries and compensation decreased 32% YoY to $56.4 million, including $32.7 million in stock-based compensation.
• Sales and marketing expenses decreased 75% YoY to $8.3 million, with marketing acquisition costs down 97% YoY to $0.7 million.
• Transaction losses increased 38% YoY to $10.6 million, including $9.2 million in credit card provision expense; credit card charge-offs rose to $11.5 million.
• Non-fraud 30-plus-day delinquency increased to 3.4% from 3.3% in the prior quarter.
• Monthly Transacting Users (MTUs) were 577,000, down 2% YoY and 1% sequentially.

Market and Competitive Landscape:

• Spot trading volume increased 18% sequentially to $4.5 billion, supported by increased institutional Zcash activity and expanded affiliated market-making.
• Approximately $1.2 billion (26%) of quarterly spot volume involved transactions between external customers and the company's market maker.
• Exchange revenue increased 7% sequentially, partially offset by lower retail trading activity.
• The company noted a "seasoning" of accounts added during rapid portfolio growth in the second half of 2025 as a factor in the increased delinquency rate.

Risks and Challenges:

• Credit card charge-offs increased significantly to $11.5 million, primarily reflecting accelerated charge-offs associated with a previously disclosed first-quarter fraud event.
• Non-fraud delinquency rates increased to 3.4%, attributed to the maturation of accounts added during a period where receivables grew faster than delinquent balances.
• The company faces risks related to crypto asset valuations, regulatory changes, and potential litigation affecting its ability to offer event contracts.
• Transaction losses increased due to higher credit card provision expenses and charge-offs.

Management Commentary and Tone:

• CEO Tyler Winklevoss stated that operating expenses have declined for a third consecutive quarter and emphasized a commitment to cost discipline and investing where customers and markets are headed.
• President Cameron Winklevoss described "Gemini 2.0" as a bet on owning regulated infrastructure to serve customers directly and allow other platforms to build on their infrastructure.
• Management expressed a long-term commitment to the crypto sector, noting they are "in this for the long term."
• The tone reflected a focus on "operational discipline" and earning customer and shareholder confidence quarter by quarter.

Other Key Points:

• On August 24, 2026, Gemini and Apex Fintech Solutions announced a non-binding letter of intent for Gemini Titan, LLC to become the exclusive regulated venue for crypto event contracts distributed through Apex's FCM to Apex's brokerage customers.
• Gemini made its Model Context Protocol (MCP) server available on AI platforms including Anthropic and OpenAI in October, allowing AI agents to access real-time market data.
• The company released a public, dependency-free TypeScript SDK covering its trading products and rebuilt its developer platform with dedicated documentation.
• The company announced plans in February 2026 to wind down operations in the United Kingdom, European Union, other European jurisdictions, and Australia, with related restructuring charges excluded from Adjusted EBITDA.
• The company hosted a conference call on November 13, 2026, to discuss results.