Gemini Reports $107.7 Million Loss in Q2 Amid Falling Trading Volumes

Gemini Suffers $107.7 Million Loss in Second Quarter

Gemini, the cryptocurrency exchange platform, has reported a net loss of $107.7 million for the second quarter that ended on June 30, marking its fourth consecutive quarterly loss since its public listing on Nasdaq in September 2025. This persistent downturn comes as the company’s spot trading volume sees a dramatic decline.

Impact of Weaker Market Conditions

The report revealed that total revenue rose by 37% year over year to $45.5 million, driven primarily by an increase in services revenue. However, spot trading volume plummeted by 66% year over year, bringing the total to $3.8 billion compared to $11.3 billion a year earlier.

Shifts in Revenue Streams

While spot trading faltered, Gemini experienced notable growth in its credit card operations, with revenue increasing by 231% to $16.2 million. Additionally, services revenue surged to $23.5 million, reflecting a 149% year-over-year increase. However, transaction revenues, particularly from exchange activities, saw significant declines – 38% drop overall, with exchange revenue falling to $12.5 million.

Management and Future Outlook

In a filing with the SEC, Gemini indicated that while total losses narrowed by 19% from $133.2 million in Q2 2025, operational losses for the quarter were reported at $76.9 million, an improvement of 18% from the previous quarter. Operating expenses also saw a significant reduction, declining 15% to $122.4 million. This decrease followed job cuts and strategic exits from several international markets.

Addressing Credit Losses

The company faced $20.1 million in transaction losses, escalating from $3.6 million reported a year earlier. This total included a provision of $16.1 million earmarked for expected credit losses on its credit card portfolio, primarily related to accounts identified as fraudulent in the first quarter. Management has assured stakeholders that this elevated provision is concentrated within a specific cohort and does not indicate widespread issues across their credit portfolio.

Asset Valuation and Growth in Users

Assets held on Gemini’s platform experienced a 54% decline, dropping to $8.4 billion down from $18.2 billion, attributed to lower asset valuations and certain withdrawals from institutional custody. On a slightly positive note, monthly active users grew by 11% to reach 580,000, although this figure represents a 2% decrease from the first quarter.

Expansion and New Product Offerings

In a bid to diversify its offerings beyond cryptocurrency trading, Gemini launched commission-free stock trading for eligible U.S. customers in July, alongside growth in its prediction markets, which generated $524,000 in Q2 revenue. The company is working to mitigate its reliance on spot trading fees as it navigates tough market conditions.

Next Steps for Gemini

Management’s upcoming earnings call on August 14 will focus on these latest results, with particular emphasis on whether the growth in service revenues can compensate for the decline in spot trading. Investors will also be keen to learn more about the company’s efforts to manage credit losses and ongoing litigation related to its IPO disclosures.