Gemini Space Station’s IPO Year: Growth Amid Heavy Losses

Gemini Space Station, Inc. Class A ((GEMI)) has held its Q4 earnings call. Read on for the main highlights of the call.

Gemini Space Station, Inc. Class A’s latest earnings call struck a cautiously optimistic tone as management highlighted strong revenue growth and rapid uptake of new products alongside sizable losses. Executives framed 2025 as a transition year marked by diversification and cost actions, but acknowledged that high expenses, crypto volatility and execution risk still cloud the near-term outlook.

IPO Milestone and Shift to a Markets ‘Super App’

Gemini completed its IPO on September 12, 2025 and used the call to define a broader strategy beyond crypto trading. Management outlined a push to build a markets-focused “super app” that bundles predictions, credit cards and eventually equities, with AI touted as a lever to streamline operations and boost monetization.

Solid Sequential Revenue Growth in a Weak Trading Backdrop

Net revenue in Q4 2025 rose to $56.4 million, up 13% from $49.8 million in Q3 despite a softer crypto environment. The company emphasized that this growth came even as trading volumes fell, underscoring the impact of fee optimization and a deeper mix of non-trading revenues.

Full-Year Revenue Expansion Signals Diversification

For 2025, Gemini generated $174 million in net revenue, a 24% increase from $141 million in 2024. Management linked this growth to the company’s effort to lessen dependence on pure trading income and expand into recurring service and interest streams.

Services and Interest Revenue Take a Larger Share

Services and interest revenue reached $76 million for the year, surpassing earlier guidance and highlighting progress in higher-margin lines. In Q4 alone, services revenue climbed to $26.5 million, up 33% sequentially, and now accounts for more than one-third of total revenue.

Credit Card Business Shows Rapid Scaling

The Gemini credit card emerged as a key growth engine, posting $33.1 million in revenue for 2025, which management described as nearly tripling year over year. Q4 card revenue jumped to $16 million from $8.5 million in Q3, supported by over 116,000 new cards issued in 2025 and about 150,000 open accounts by early March.

Early Momentum in Prediction Markets Platform

Launched in December 2025, Gemini Predictions is still nascent but showing initial engagement. About 15,000 users have traded across roughly 12,000 listed contracts, suggesting interest in the new marketplace as part of the broader super app vision.

Growing User Base and Cross-Product Activity

Monthly transacting users reached approximately 601,000 at year-end 2025, up 17% from the prior year. Management pointed to this growth as evidence that customers are increasingly using multiple products across the platform, which could support higher lifetime value.

Balance Sheet Cleanup and Cost Actions

The company highlighted a roughly 30% workforce reduction since the start of 2026, bringing headcount to about 445 by March 1. Gemini also repaid a $117 million loan and ended the year with around $252 million in cash, moves intended to reduce cash burn and simplify the capital structure.

Transaction Revenue Holds Up as Volumes Slide

Q4 transaction revenue came in at $26.7 million, essentially flat versus Q3’s $26.3 million despite a steep drop in spot trading volumes. Management attributed this resilience to improved fee economics and a shift toward retail activity, partly cushioning the impact of a weaker market.

Large GAAP Losses and EBITDA Deficit Weigh on Story

Gemini reported a full-year 2025 GAAP net loss of $582.8 million and an adjusted EBITDA loss of $258 million, reflecting heavy investment and market swings. Non-cash hits included sizable fair value losses on related-party instruments and IPO-related stock-based compensation, amplifying the headline loss figures.

Operating Expenses Surge with Growth and Public Status

Total operating expenses jumped to $525 million in 2025 from $308 million in 2024, an increase of about 70%. The company cited IPO-driven stock-based pay, higher marketing to scale the card, and increased technology, compliance and public-company costs as primary drivers.

Crypto Volatility Pressures Trading Activity

Management underscored how sharp moves in bitcoin prices contributed to softer customer trading. Spot trading volumes fell about 30% sequentially in Q4 and remained subdued through February 2026, underscoring Gemini’s continuing exposure to broader crypto cycles.

International Pullback and Restructuring Costs

Gemini exited the U.K., EU and Australian markets, acknowledging difficulty competing effectively in those regions. The retrenchment will trigger roughly $11 million in pretax restructuring charges, mostly in early 2026, and will require cash outlays to wind down operations.

Headcount Cuts Bring Savings and Near-Term Charges

The workforce reduction of about 30% is designed to align costs with the new operating scale, but it also carries one-time restructuring expenses. Management noted that Q4 headcount figures did not fully reflect these cuts, with the benefit expected to appear in later quarters.

Credit Card Economics and Funding Risks in Focus

While card revenue is rising, Q4 transaction losses totaled $6 million, including provisions for credit losses, highlighting the risk side of growth. The card portfolio relies on warehouse financing that is expanding alongside receivables, reinforcing the need to manage credit quality and funding carefully.

Limited Visibility and Share Price Pressure

Executives stopped short of providing a full 2026 operating expense outlook, offering only wide ranges for key categories given macro and restructuring uncertainty. They also acknowledged share price underperformance since the IPO, signaling that investor skepticism is adding urgency to execution.

Forward-Looking Guidance and 2026 Priorities

For 2026, Gemini is targeting lower cash compensation costs and more disciplined marketing as it completes its restructuring. Management expects stock-based compensation, technology and G&A to remain significant but believes headcount cuts, stable cash balances and growing services, card and predictions businesses will drive improved adjusted EBITDA and lower cash losses over the year.

Gemini’s earnings call painted a picture of a company in the middle of a high-risk, high-reward transformation, with strong product traction offset by heavy losses and market headwinds. Investors will be watching whether the pivot to a diversified markets super app and the aggressive cost reset can translate into sustainable profitability in the coming quarters.