Gemini Space Station (GEMI) reported Q2 2026 net loss of $107.7 million while revenue rose 37% year-on-year to $45.5 million, driven by a 117% increase in services revenue to $26.0 million and a 231% jump in credit card revenue to $16.2 million. Exchange revenue fell 38% as crypto trading volume plunged to $3.8 billion from $11.3 billion, and a $16.1 million credit card fraud provision pushed transaction losses to $20.1 million, triggering a 7% after-hours stock drop to $4.00 despite a 15% reduction in operating expenses.

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In Brief

Gemini shares fell 7% to $4.00 after posting a $107.7 million quarterly loss.
Revenue rose 37% to $45.5 million as services income jumped 149%.
A $16.1 million credit card fraud provision lifted transaction losses to $20.1 million.

Gemini Space Station (GEMI) stock slid 7% to $4.00 in after-hours trading Thursday after the crypto exchange reported a second-quarter net loss of $107.7 million.

The loss came in 19% smaller than a year earlier, and revenue climbed 37% to $45.5 million. Even so, a fraud charge and thinner trading volumes overshadowed the company’s progress.

Services Revenue Doubles as Crypto Trading Dries Up

The stock closed the regular session 3.12% higher at $4.30 before the company released earnings after the bell, which reversed the gains.

Gemini Space Station (GEMI) Stock Performance. Source: Google Finance

According to the press release, net loss per share came in at $0.89, against $27.08 a year earlier. Services revenue and interest income climbed 117% to $26.0 million. Credit card revenue supplied most of that gain, rising 231% to $16.2 million, while staking added $4 million.

OTC revenue jumped to $4.7 million from $0.6 million on heavier institutional trading. In addition, prediction markets added $0.5 million.

Exchange revenue moved the other way. It fell 38% to $12.5 million as crypto trading volume shrank to $3.8 billion from $11.3 billion a year earlier.

“While we still have work to do as a company, this quarter’s results reflect our ongoing efforts to reduce operating expenses while diversifying revenue,” Gemini CEO, Tyler Winklevoss, said.

Fraud Charge Undercuts the Cost Cuts

Meanwhile, transaction losses tell a harsher story. They surged to $20.1 million from $3.6 million. This was driven mainly by a $16.1 million provision for credit losses on the credit card portfolio.

“The higher provision was impacted by an identity fraud event identified earlier in 2026,” the firm noted.

Operating expenses dropped 15% sequentially to $122.4 million from $144.5 million. February’s 30% staff cut and withdrawals from international markets drove the decline. Operating loss came to $76.9 million.

Investors treated the prior quarter differently. Shares rallied after Q1 2026 earnings showed $50.3 million in revenue and a $109 million loss.

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