Gemini recorded a net loss of $159.5 million in the third quarter while its stock fell to a historic low after its Nasdaq debut. Despite 52% year-over-year revenue growth, the results expose tension between user expansion and cost control, affecting investors, platform users and competitors in the crypto-asset exchange sector.
According to the company, quarterly revenues climbed 52% year‑over‑year to a range of $49.8–$50.6 million. Transaction volume increased by 45% and card payments grew by more than 100%, signaling greater adoption and activity on the platform.
Operating expenses rose to $171.4 million, partly due to IPO-related costs, producing an EPS of -$6.67 compared with -$18.33 in the same period in 2024.
The market reaction was violent: the stock fell around 11% and more than 12% in the after‑hours, marking a new historic low. In contrast, a prominent competitor reported a profit of $433 million in the same quarter, highlighting operational divergence within the sector.
Context and impact of the ‘super app’ plan
Gemini’s strategic response is to become a “super app”: an integrated platform that combines multiple financial services into a single interface. The bet seeks to raise revenue per user and leverage network effects, but it requires significant technological and operational investment. Immediately, the company faces two challenges: realigning costs to bring expenses closer to revenues and executing the integration of new services without degrading the core trading experience.
With the current expenses ($171.4 million) exceed quarterly revenues; loss reduction depends on controlling those costs. Algo it has fee advantage (around 0.3% versus 0.5% of a rival) helps acquisition, but does not offset operational deficits.
Gemini’s ability to reverse course hinges on containing costs and on the speed and quality of its super app execution. The immediate test will be the evolution of results and operating cash flow in the coming quarters, without eroding the central trading platform.
