Key facts
- Gemini reported Q2 revenue of $45.5 million, a 37% year-over-year increase.
- The company posted a net loss of $107.7 million for the quarter.
- Exchange revenue decreased by 38% to $12.5 million.
- Services revenue grew by 149% to $23.5 million.
- Transaction losses increased to $20.1 million, largely due to a provision for credit losses.
Cryptocurrency exchange Gemini reported a 37% year-over-year increase in second-quarter revenue to $45.5 million, but posted a $107.7 million net loss as exchange trading weakened.
Exchange revenue fell 38% to $12.5 million, with trading volume dropping by two-thirds to $3.8 billion from $11.3 billion in the prior year. Services revenue, however, climbed 149% to $23.5 million, primarily driven by a 231% increase in credit card revenue to $16.2 million and a 50% rise in staking revenue to $4 million.
Transaction losses surged to $20.1 million from $3.6 million a year ago. This increase was largely attributed to a $16.1 million provision for credit losses stemming from an identity fraud event related to the credit card portfolio. Gemini stated this provision was concentrated among affected accounts and did not indicate a broader portfolio issue.
Operating expenses decreased by 15% from the first quarter, totaling $122.4 million for the second quarter, as the company continued cost-cutting measures. Gemini's stock price saw a 3% rise during regular trading on Thursday but declined nearly 5% in pre-market trading on Friday following the earnings release.