Gemini posts $107.7M Q2 loss as revenue climbs 37%

Gemini, the New York-based cryptocurrency exchange, reported a 37% year-over-year increase in second-quarter revenue to $45.5 million and a net loss of $107.7 million in results released Thursday.

Exchange revenue fell 38% year over year to $12.5 million after trading volume declined to $3.8 billion from $11.3 billion in the prior-year quarter. Services revenue rose 149% to $23.5 million, driven by a 231% increase in credit card revenue to $16.2 million and a 50% gain in staking revenue to $4.0 million. Including interest income, services revenue plus interest totaled $26.0 million for the quarter.

Transaction losses widened to $20.1 million from $3.6 million a year earlier. The company reported a $16.1 million provision for credit losses tied to an identity fraud event that affected accounts in its credit card portfolio and noted the provision was concentrated among the impacted accounts rather than reflecting broad deterioration across the portfolio.

Operating expenses rose 24% year over year to $122.4 million, but fell 15% from the first quarter after the firm implemented cost-cutting measures announced earlier in the year. The sequential decline reflected the initial impact of those expense reductions.

Market trading around the release was mixed: the stock rose during regular trading on Thursday and traded lower in pre-market sessions on Friday.

The company did not provide forward guidance in the release. The results show services revenue, including card and staking, made up a larger portion of total revenue as core exchange volumes declined.