Gemini’s Q3 Loss Shrinks, but Crypto Marks Did Much of the Work

Gemini Space Station, the Nasdaq-listed crypto exchange founded by Cameron and Tyler Winklevoss, cut its third-quarter net loss by 63% to $58.6 million from $159.5 million a year earlier, as spending fell faster than its revenue.
Total revenue dropped 19% to $40.9 million from $50.6 million, the company reported in an SEC filing on Thursday alongside its earnings release. The loss came to $0.46 a share, against $6.67 in the same quarter of 2025.
Trading on the platform came to $4.5 billion, a 73% drop from $16.4 billion a year ago but an 18% rise from $3.8 billion in the second quarter. Gemini credited the quarterly gain to more institutional trading in Zcash and to expanded market-making by an affiliate. About $1.2 billion of the quarter’s spot volume, or 26%, came from trades between outside customers and Gemini’s own market maker. Exchange revenue fell 47% to $13.4 million.
Operating expenses dropped 30% to $119.9 million, the third quarter in a row they have declined, led by lower pay and a 75% cut in sales and marketing. “We expect to be judged on results, and we intend to earn the confidence of our customers and shareholders one quarter at a time,” CEO Tyler Winklevoss said in the release.

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What Moved the Adjusted Loss
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, with stock-based pay also added back) showed a loss of $11.6 million, compared with $74.0 million in the second quarter. Gemini tied the improvement to smaller credit card loss provisions and lower compensation, plus its marks, the gains and losses on the value of its crypto holdings and of crypto loans from related parties. Those marks added $25.7 million in the third quarter after subtracting $25.0 million in the second, a $50.8 million swing.
With those marks removed from both quarters, the adjusted loss would have been about $37.3 million in the third quarter against about $49.0 million in the second, by Unchained’s calculation from the reported figures.
Under standard accounting rules, the operating loss widened to $79.0 million from $76.9 million in the second quarter, as lower revenue and a $12.4 million jump in stock-based pay, which Gemini tied to annual equity bonuses recognized in July, outweighed a $14.9 million cut in other operating expenses.
Cards, Cash and Europe
Services revenue and interest income made up 59% of net revenue, up from 47% a year earlier. Credit card revenue rose 82% to $15.5 million, while card charge-offs climbed to $11.5 million, which Gemini linked mainly to accounts tied to a fraud event it disclosed in the first quarter. Cash and cash equivalents stood at $194.1 million on Sept. 30, down from $252.2 million at the end of 2025.
The release’s only reference to Europe is the February plan “to wind down operations in the United Kingdom, European Union, other European jurisdictions, and Australia,” a retreat that came with a cut of roughly a quarter of its staff. It says nothing about the sale of Gemini’s UK and EU business to stablecoin payments firm KAST for under $10 million, which CoinDesk first reported on Thursday.
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