- Revenue rose 37% to $45.5 million in Q2.
- Net loss narrowed to $107.7 million from $133.2 million.
- A fraud-linked credit card provision lifted transaction losses.
The Gemini quarterly loss remained in focus after the company reported another unprofitable quarter and a sharp after-hours share drop. Gemini posted a net loss of $107.7 million for the second quarter, while revenue rose 37% year over year to $45.5 million. Shares fell more than 7% after the report as investors weighed weaker trading activity and a larger credit card loss provision.
Gemini Quarterly Loss Reflects Fraud Provision and Lower Trading
The Gemini quarterly loss came as exchange revenue dropped 38% to $12.5 million. Total trading volume fell to $3.8 billion from $11.3 billion a year earlier. That decline weighed on the company’s core business even as other segments expanded.
A large part of the pressure came from transaction losses. Gemini said transaction losses rose to $20.1 million from $3.6 million last year. The increase was driven mainly by a $16.1 million provision tied to an identity fraud event in its credit card portfolio.
Still, the Gemini quarterly loss narrowed from $133.2 million in the same period last year. Operating expenses also fell 15% from the first quarter to $122.4 million.
Gemini Quarterly Loss Comes Despite Fast Services Growth
The Gemini quarterly loss did not stop strong growth in services revenue. Services revenue climbed 149% to $23.5 million, while services revenue and interest income rose 117% to $26.0 million. Credit card revenue jumped 231% to $16.2 million, and staking revenue increased 50% to $4.0 million.
Gemini also reported $500,000 in prediction markets revenue. Event contracts traded on the platform rose 93% from the first quarter. The company launched its derivatives clearinghouse on August 4 and said it may add crypto futures, options and perpetuals.
Monthly transacting users rose 11% to 580,000. Assets on platform fell to $8.4 billion from $18.2 billion, reflecting lower crypto prices and some institutional custody outflows. The Gemini quarterly loss landed as the company continued its push into stocks, predictions and other non-exchange products.
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