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Gemini Q3 Revenue Hits $49.8M, Stock Drops 12% Post-IPO Losses

Gemini Reports 52% Revenue Growth in Q3 Despite $159.5M Net Loss and 12% Share Drop

  • Gemini reported Q3 net revenue of $49.8 million, a 52% increase from the previous quarter.
  • Operating expenses rose to $171.4 million, driven by IPO-related costs and higher marketing spending.
  • The company posted a $159.5 million net loss, larger than expected, leading to a post-market share decline of up to 12%.
  • Transaction revenue reached $26.3 million and services revenue grew 111% to $19.9 million.
  • The Gemini credit card surpassed 100,000 accounts and generated over $350 million in quarterly spending.

Gemini, the cryptocurrency exchange operator, released its first public company financial results for the third quarter. The company recorded $49.8 million in net revenue, up 52% from the previous quarter, but posted a net loss of $159.5 million due to increased IPO-related expenses, marketing costs, and stock-based compensation, as stated in its shareholder letter.

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On a per-share basis, Gemini reported an adjusted loss of $1.81, missing the consensus estimate of a $0.82 loss according to MarketBeat data. Shares fell as much as 12% in after-hours trading, continuing a selloff that has reduced the stock price by half since its September market debut. The stock closed the regular session at $16.84 then dropped to $15.80 after hours, with a market capitalization near $1.98 billion during the period referenced in Google Finance data.

Operating expenses rose to $171.4 million for the quarter, outpacing net revenue. Despite the losses, the company’s transaction revenue climbed 26% to $26.3 million, and services revenue surged 111% to $19.9 million. Trading volume reached $16.4 billion, its highest in several years, largely due to increased institutional activity.

The Gemini credit card business showed strong growth, exceeding 100,000 open accounts and generating over $350 million in quarterly spend, more than doubling the previous quarter’s results. The company stated, “Together, these results were a reflection of our strongest quarter of user acquisition in over three years.” Earlier in the month, Gemini filed plans to launch a prediction-markets business involving event contracts on outcomes such as sports or political elections, according to their shareholder letter.

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