Revenue is impressive, but cost control is the focus
In September, Gemini, which went public on Nasdaq, announced its first quarterly financial report (Q3 2025) after the IPO yesterday, confirming that revenue increased by 52% quarter-on-quarter (reaching $49.8 million, exceeding analyst expectations of $47.4 million), primarily benefiting from a rebound in trading volume (spot trading volume reached $16.4 billion, up 45% quarter-on-quarter) and contributions from new products like credit cards and staking services.
However, after the financial report was released, GEMI's stock price rose 2.29% in after-hours trading (to $16.55) but then dropped over 11% in the morning of the next day (November 11), closing at a historic low of $15.89 (a 43% drop from the IPO price of $28).
On the surface, revenue growth appears strong, with trading volume/institutional business leading (accounting for 89%), credit card spending doubling, and staking balances at $741 million.
In reality, net losses from costs have widened (EPS -$6.67 vs. expected -$3.24), and operating expenses (related to the IPO and expansion) have exceeded revenue, resulting in an EBITDA loss of $524 million.
During the IPO, the market enthusiastically embraced the “compliant blue-chip” (benefiting from Trump's pro-crypto policies), but the stock price has halved within three months! Gemini seems to be facing the challenge of transitioning from narrative to profitability!!