Gemini cut its third-quarter net loss by 63% to $58.6 million from $159.5 million a year earlier because spending fell faster than revenue. Total revenue dropped 19% to $40.9 million from $50.6 million, and trading volume fell 73% from $16.4 billion a year ago to $4.5 billion.
Crypto marks drive the narrow loss
The company tied the improved adjusted EBITDA loss of $11.6 million to smaller credit card loss provisions, lower compensation, and crypto marks. These marks added $25.7 million in the third quarter after subtracting $25.0 million in the second quarter, which created a $50.8 million swing. Without these marks, the adjusted loss would have been about $37.3 million in the third quarter against about $49.0 million in the second. Trading on the platform rose 18% from $3.8 billion in the second quarter, which Gemini credits to more institutional trading in Zcash and 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.
Revenue shifts and expense cuts
Operating expenses dropped 30% to $119.9 million, led by lower pay and a 75% cut in sales and marketing. Under standard accounting rules, the operating loss widened to $79.0 million from $76.9 million in the second quarter because a $12.4 million jump in stock-based pay outweighed a $14.9 million cut in other operating expenses. Credit card revenue rose 82% to $15.5 million, but card charge-offs climbed to $11.5 million because of accounts tied to a fraud event 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. "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.
