Gemini Q3 Earnings Miss: $159.5M Loss and Shares Slide
Gemini Q3 earnings fell short as the crypto exchange posted a net loss of $159.5 million ($6.67 per share), doubling analysts’ forecasts in its first report post-IPO. Despite revenue surging to $50.6 million—outpacing Coinbase’s growth—heavy marketing and IPO-related costs weighed on results. Shares slid over 8% in pre-market trading, extending declines since the September IPO.
Gemini Q3 earnings also reflect gains from trading volume, staking services and a crypto rewards credit card, and CFO Dan Chen confirmed a strong balance sheet and ample liquidity. Looking ahead, Gemini plans to develop a multi-product “super app” integrating tokenized dollars, stocks and digital goods. The company has also applied to the CFTC for regulated prediction markets for sports and political events. Traders should monitor market reactions as these long-term initiatives unfold.
Bearish
The report’s larger-than-expected net loss and expanded IPO-related costs triggered an over-8% share price decline in pre-market trading, indicating negative sentiment and near-term bearish pressure on Gemini stock. Although revenue growth and a solid liquidity position provide long-term upside potential, the immediate market reaction to the Q3 earnings miss and increased expenses suggests a cautious outlook among traders.