Five consecutive quarters of losses, stock down nearly 90% from IPO: How long can Gemini's cash last?
Author: Olga Kharif, Bloomberg
Gemini Space Station Inc. has reported losses for five consecutive quarters since its listing, with a third-quarter loss of $58.6 million, or $0.46 per share. The company's revenue declined by 19% to $40.9 million, while spot trading volume dropped sharply by 73% year over year; total operating expenses decreased by 30% year over year to $119.9 million.
As of the end of the quarter, Gemini held $194.1 million in cash, down from $252.2 million at the end of last year. Analysts are closely monitoring its cash burn rate to assess the length of its remaining operational runway.
The digital asset platform, founded by billionaire brothers Tyler Winklevoss and Cameron Winklevoss, went public last year, shortly after which the crypto market pulled back from its all-time highs; now, it marks its fifth consecutive quarter of losses since its IPO.
The company's third-quarter loss of $58.6 million, or $0.46 per share, beat the consensus estimate of a $0.67 loss per share among analysts surveyed by Bloomberg; in the same period last year, Gemini posted a loss of $159.5 million. Revenue, which fell 19% year over year to $40.9 million, also came in better than market expectations.
Shares of the New York-based company rose more than 5% in after-hours trading. However, compared to its IPO price in September 2025, the stock has cumulatively fallen nearly 90%.
Figure: Tyler Winklevoss and Cameron Winklevoss attended the Token2049 conference in Singapore in October. Photographer: Ore Huiying / Bloomberg
Although Gemini's scale is far smaller than exchanges such as Coinbase, OKX, and Binance, the Winklevoss twins are among the most prominent advocates in the crypto industry. In the U.S. midterm elections that just concluded, the two served as major backers for the sector, helping push through regulatory frameworks favorable to the industry.
At the time of Gemini's earnings release, digital asset prices weakened again due to higher-than-expected U.S. inflation data, cooling risk appetite across markets, and concerns that Democrats controlling Congress would implement policies unfavorable to the industry. Crypto exchange revenues rely heavily on trading fees, and subdued token prices typically dampen trading activity.
In a Thursday announcement, Gemini stated that spot trading volume fell 73% year over year. Meanwhile, total operating expenses declined by 30% year over year to $119.9 million, with the reductions primarily driven by lower compensation costs and cuts to marketing expenditures.
CEO Tyler Winklevoss said, "Operating expenses have fallen for three consecutive quarters. As we invest resources to grow the business, we will continue to manage our capital allocation prudently. We understand the challenges ahead and are committed to doing things right."
Figure: Gemini's stock price plummeted sharply following its October 2025 listing, trading at low levels for an extended period
To reduce its reliance on trading fee revenue, Gemini is expanding into new businesses such as prediction markets. This segment generated $800,000 in quarterly revenue, a 52% increase quarter over quarter.
As of the quarter's end, company cash stood at $194.1 million, down from $252.2 million at the end of last year. Analysts are continuously tracking its cash burn to determine how long the company can sustain operations without additional capital injections from the Winklevoss brothers.
Matthew Coad, equity analyst at Truist brokerage, said ahead of the earnings release: "I believe this brother duo will continue to act as a final source of funding, carrying the company until the next crypto bull market arrives. Our model does not factor in subsequent capital injections from them, but the company's outlook remains highly uncertain."
Earlier this year, the company laid off approximately one-third of its staff, with several executives stepping down. In May, the brothers injected $100 million into the perpetually loss-making exchange. Additionally, the platform faced a high incidence of credit card fraud this year, with Gemini noting that bad debt from credit cards increased in the third quarter due to previously exposed fraudulent activities.
Just a week before Gemini's earnings release, larger rival Coinbase released its own report, returning to profitability after a year but also experiencing a decline in quarterly revenue.