Gemini Space Station Inc. recorded a net loss of $107.7 million for the second quarter ended June 30, 2026, marking its fourth consecutive quarterly loss since listing on Nasdaq in September 2025. The result narrowed 19% from a $133.2 million loss in the year-earlier period, while total revenue climbed 37% to $45.5 million from $33.3 million.

Shares of the company dropped more than 7% in after-hours trading following the release of results on August 13. The loss equated to 89 cents per share.

Core Trading Business Under Pressure

Exchange revenue declined 38% year over year to $12.5 million as total trading volume fell sharply to $3.8 billion from $11.3 billion a year earlier, a drop of about 66%. Retail spot volume decreased 53% to $700 million, while institutional volume slid 68% to $3.1 billion.

Assets on the platform contracted 54% to $8.4 billion from $18.2 billion. The company attributed the decline primarily to lower cryptocurrency valuations and select institutional custody outflows. Monthly transacting users rose 11% year over year to 580,000, though the figure edged down 2% from the first quarter.

Transaction revenue overall fell 15% to $17.8 million. The softer performance in the core spot trading business occurred against a backdrop of reduced crypto market activity and prices that had roughly halved for major assets over the period.

Diversification Efforts Offset Some Weakness

Growth in non-exchange lines helped lift overall revenue. Services revenue and interest income increased substantially, with credit card revenue surging 231% to $16.2 million and staking revenue rising 50% to $4 million. Over-the-counter revenue also advanced to $4.7 million from $611,000.

Prediction markets generated approximately $524,000 in revenue. Event contracts traded increased 93% from the first quarter, with cumulative contracts surpassing 225 million. In July the company launched commission-free stock trading for eligible U.S. customers as part of a broader push beyond pure crypto trading.

Gemini also advanced its regulated derivatives infrastructure. Its clearinghouse went live in early August after earlier CFTC designations, enabling the firm to settle its own prediction contracts and explore additional products.

Operating expenses declined 15% sequentially to $122.4 million, aided by workforce reductions earlier in the year and exits from certain international markets. Operating loss improved 18% from the first quarter to $76.9 million. The company recorded $20.1 million in transaction losses, including a $16.1 million provision for expected credit losses on its credit card portfolio, of which about $10 million related to accounts tied to identified fraud activity in the first quarter. Management stated the elevated provision was concentrated in the affected group and added fraud detection controls.

Separately, Gemini booked a $60.7 million realized and unrealized loss on crypto assets and receivables, partially offset by a $35.7 million gain on related-party crypto loans. Adjusted EBITDA stood at a loss of $74.0 million.

Stock Performance and Outlook

Gemini shares have traded near all-time lows around $4, well below the September 2025 IPO price of $28 that valued the firm at roughly $3.3 billion. The stock had reached as high as $45.89 on its first day of trading.

Management is scheduled to discuss the results on an earnings call at 8:30 a.m. ET on August 14. The company continues efforts to build revenue streams less dependent on crypto market swings while maintaining cost discipline. It also faces an ongoing investor class action related to IPO disclosures and strategy.

President Cameron Winklevoss noted that the platform has undergone substantial change in recent months as the firm expands its product set.