gemini

Gemini’s latest quarterly update paints a picture of a fast-expanding business shouldering the weight of its own ambition. The U.S.-based crypto exchange ended the third quarter with a net loss of $159.5 million, a setback largely tied to a surge in operating expenses that accompanied its move into the public markets.
Rising Costs Overshadow Revenue Momentum
After listing on Nasdaq on September 12, 2025, Gemini saw its operating costs climb more than 70% quarter-over-quarter, jumping from $98.7 million in Q2 to $171.4 million in Q3. Much of that increase stemmed from stock-based compensation linked to the IPO, along with stepped-up marketing efforts—particularly those tied to the exchange’s bitcoin-branded Gemini credit card and broader platform development initiatives.
Even with the heavier cost load, the company reported meaningful top-line progress. Total revenue grew roughly 34% to $50.6 million, a move driven primarily by the performance of its service-related business lines.
Trading Activity and Service Expansion Drive Revenue Growth
Trading revenue remains the backbone of Gemini’s income. In Q3, it brought in $26.3 million—more than half of total revenue—supported by rising activity from both retail and institutional clients. Although lower average retail trading fees offset some of that growth, overall volume trends were strong enough to push the segment forward.
The standout performer, however, was Gemini’s service-based revenue. This line surged 111% quarter-over-quarter to $19.9 million, reinforcing how central diversification has become to the exchange’s long-term strategy.
In a note highlighting the quarter’s trends, the company emphasized that the results “reflect the growing health of the Gemini marketplace and the increasing depth of liquidity across customer segments.” Gemini reiterated that its dual-channel model—serving both retail and institutional users—continues to deliver a balanced foundation for expansion.
Inside the Q3 Cost Breakdown
The shareholder letter accompanying the earnings results offered a detailed look at the $171.4 million in operating expenses. Compensation and headcount expenses nearly doubled, rising from $36.8 million in the previous quarter to $82.5 million. A major factor was $45.8 million in stock-based compensation tied to equity awards granted as part of the IPO process.
These heavy upfront costs, while weighing on current profitability, are positioned as investments meant to fortify Gemini’s infrastructure, talent pool, and product ecosystem.
Looking Ahead: Building for the Long Game
Despite the quarterly loss, Gemini maintained a forward-looking stance. The exchange noted that its focus is on building a platform capable of taking advantage of bull-market momentum while remaining resilient during less favorable periods.
As the company continues expanding its revenue mix and bolstering its product suite, it appears intent on balancing short-term financial pressure with long-term strategic growth—an approach that may determine how effectively Gemini positions itself in an increasingly competitive digital asset landscape.
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