Gemini revenue falls 19% as trading volume drops 73% in Q3

Gemini reported third-quarter revenue of $40.9 million after the close on Thursday, down 19% from a year earlier, as trading on the crypto exchange fell by almost three quarters. The company narrowed its net loss to $58.6 million. Costs dropped faster than sales.

The numbers come from results that Gemini Space Station, Inc. filed with the US Securities and Exchange Commission. Gemini trades on the Nasdaq under the ticker GEMI, where it listed in September 2025 at $28 a share. The listing came during a stronger stretch for crypto stocks, and the shares traded above $40 on their first day. The mood has since cooled. These are among the first results Gemini has reported as a public company, and they land in a weak quarter for the listed crypto sector. Revenue of $40.9 million compares with $50.6 million in the same period of 2025.

Trading volume fell to $4.5 billion

Spot trading volume on the exchange reached $4.5 billion for the quarter that ended September 30. A year earlier it was $16.4 billion. That works out to a drop of about 73%. Exchange revenue, the fees Gemini earns when customers buy and sell, fell 47% to $13.4 million.

Lower volume hits Gemini twice. Fewer trades mean fewer fees, and a thinner book can nudge active traders toward deeper venues. That is the risk in a business built on matching buyers with sellers. Retail flow drives most of it, and retail went quiet as prices fell through the autumn.

One number cuts the other way. Spot volume rose about 18% from the second quarter, so the retreat is not a straight line down. The year-on-year comparison looks stark because the third quarter of 2025 was an unusually busy one for the whole market.

Costs are coming down faster than revenue

Gemini spent $119.9 million running the business in the quarter, down 30% from $171.4 million a year earlier. Operating expenses have now fallen for three quarters in a row, a reversal from the heavy spending that followed its listing. Tyler Winklevoss, the company's chief executive, said costs "declined for a third consecutive quarter" and that the firm intends to "stay disciplined about where those dollars go." Gemini cut jobs in February 2026 and has pointed to lower headcount since.

Even so, the gap is still wide. Gemini spent nearly three times its revenue just to operate. That is why the quarter ended in a loss, though a much smaller one than the $159.5 million reported a year earlier. The improvement came from the cost cuts and from the absence of the large one-off charges that weighed on the 2025 figure.

The direction matters more than the single quarter. A $58.6 million loss on $40.9 million of revenue is still a long way from breaking even. But the loss has shrunk by roughly 63% in a year while revenue fell only 19%, so the two lines are at least moving toward each other. Closing the rest of the gap means either winning back trading volume or finding revenue that does not depend on it.

The Gemini 2.0 bet on regulated rails

Management framed the quarter around a longer plan it calls Gemini 2.0. Cameron Winklevoss, the president, said the strategy "is our bet that the platforms that last will be the ones that own the regulated infrastructure underneath." The pitch puts Gemini among rivals racing to own licensed custody and settlement rather than just matching buyers with sellers. Coinbase took a similar step this month, when its national trust charter took effect after approval from the Office of the Comptroller of the Currency.

For now the plan rests on holding customers and their money. Gemini reported $464.3 million in customer custodial funds at the end of the quarter, held separately from its own cash. It also set aside $89.4 million in restricted cash and kept $194.1 million of its own cash and equivalents on hand. Whether the regulated-rails story turns into revenue is the open question, and the company set no timeline for it.

A tough quarter across listed crypto

Gemini is not alone in reporting thinner numbers. The third quarter was hard across the listed sector as trading cooled and prices slid. eToro, which offers crypto alongside stocks, said its profit fell 74% over the same period. The common thread is retail activity, which rises and falls with the price and which these firms cannot control. The listed exchanges that live on fees, Gemini among them, had the least shelter. When volume halves, so does a core piece of revenue, and there is no quick lever to pull it back. Costs are easier to cut than customers are to win back, and that is the squeeze facing much of the industry right now.

What to watch

No guidance came with the results, so the next quarter is the real test. Watch whether the sequential rise in volume holds or fades with the market. Watch the cost line too. A fourth straight quarter of falling expenses would suggest the February cuts were structural, not a one-off.

One more thing is worth watching: where the revenue now comes from. Net revenue was $39.2 million, and services revenue and interest income together made up 59% of it. Fee income from trading is now the smaller half of the business. For an exchange, that is a real shift. It ties Gemini more closely to interest rates, because a chunk of that money is yield on cash rather than trading fees. The mix steadied the top line while volumes fell. It would work the other way if the Federal Reserve cuts rates hard. The filing did not separate interest earned on the company's own cash from interest on customer balances.