Gemini posts $107.7M quarterly loss as exchange revenue falls 38%

Revenue Mix Shifts as Trading Volumes Soften

@Gemini reported a net loss of $107.7 million for the second quarter of 2026, down 19% from the $133.2 million loss recorded in Q2 2025, according to the company's latest earnings release. The improvement came even as the exchange continued to operate at a significant deficit, reflecting the persistent pressure facing mid-tier crypto platforms in a softer trading environment.

Total revenue grew 37% year over year to $45.5 million, up from $33.3 million in Q2 2025, but the composition of that revenue tells a more cautious story. Exchange revenue, the core trading business, fell 38% to $12.5 million from $20.2 million in the same period a year earlier. The decline reflects broader weakness in spot trading volumes across the crypto market.

Services revenue was the standout, surging 149% year over year from $9.5 million to $23.5 million, helping to offset the trading shortfall and underpin the overall revenue gain. The company said it continued to benefit from cost optimisation initiatives put in place earlier in 2026.

Bitcoin Losses Weigh on Adjusted EBITDA

While the net loss narrowed and operating loss improved for a third consecutive quarter, adjusted EBITDA deteriorated to negative $74 million, compared to negative $51.9 million in Q2 2025. Gemini attributed the decline primarily to market-driven realised and unrealised losses on $BTC received as part of a May 2026 private placement, following a fall in bitcoin prices after the transaction closed.

Operating expenses fell 15% sequentially to $122.4 million, down from $144.5 million in Q1 2026, reflecting lower restructuring charges, reduced stock-based compensation, and continued cost discipline. Operating loss improved by approximately $17.2 million, or 18%, quarter over quarter.

Monthly transacting users rose 11% year over year to 580,000, though assets on platform fell to $8.4 billion from $18.2 billion in Q2 2025, reflecting lower crypto asset valuations relative to elevated market levels in the prior year period. Cash and cash equivalents stood at $188.6 million at quarter end, compared with $252.2 million at the close of Q4 2025.

The results come after a turbulent stretch for the Winklevoss-founded exchange. Earlier in 2026, the company exited the UK, EU, and Australian markets and cut around 200 jobs as part of a restructuring plan aimed at returning the business to profitability.

Sources:
Gemini Q2 2026 Results, via GlobeNewswire (Manila Times)
CoinDesk: Gemini Q1 2026 Earnings and Bitcoin Private Placement