Gemini stock sinks to all-time low despite 52% revenue jump in first post-IPO earnings

Crypto exchange Gemini reported its first quarterly results since going public in September, posting a 52% jump in revenue from the prior quarter as trading activity rebounded and new products like its credit card and staking services broadened the company’s revenue base amid higher IPO-related expenses.

Net revenue rose to nearly $50 million in the third quarter, driven by over $26 million in transaction fees and roughly $20 million from services, including record performance from the Gemini credit card and expanding institutional staking.

The firm still booked a net loss of $159.5 million, equaling about $6.67 per share, largely due to stock-based compensation and marketing tied to its initial public offering in September, with adjusted EBITDA at negative $52.4 million.

Trading volumes reached $16.4 billion, up 45% from the prior quarter, as institutional activity climbed nearly 50%.

Gemini also launched a self-custody wallet and expanded its regulatory footprint, securing a MiCA license in Europe in August and debuting operations in Australia in early October.

The Gemini credit card surpassed 100,000 open accounts and $350 million in spending, doubling quarter-over-quarter, while staking balances hit $741 million. Services revenue now accounts for nearly 40% of total income, compared with less than 30% a year earlier.

Gemini said it repaid debt and opened a $150 million credit facility for its card receivables to improve capital efficiency following its IPO. The company forecast full-year services and interest revenue of $60 to $70 million, expecting continued growth from credit-card and staking products.

Despite the stronger topline performance, shares of GEMI fell more than 11% in after-hours trading, dropping below $15 to a new all-time low as investors focused on widening losses and IPO-related costs.