Gemini Space Station (NASDAQ:GEMI) used its fourth-quarter and full-year 2025 earnings call to outline a strategic shift toward becoming what the company described as a broader “markets company,” while detailing financial results that showed sequential revenue growth in the fourth quarter despite weaker crypto trading conditions. Management also emphasized a cost reset underway in early 2026, including a workforce reduction and exits from several international markets.
Strategic shift: from crypto exchange to “markets company”
Co-founder Cameron Winklevoss said 2025 marked a transition year that included Gemini’s move into the public markets on Sept. 12. He framed the company’s next phase as building a “super app” that expands beyond “buy, sell, and store” crypto into additional financial activities.
Looking ahead, Winklevoss said the company intends to use similar infrastructure to support perpetual futures contracts “once these contracts are allowed in the U.S.” and described a plan to launch U.S. equities as “the next phase” of the platform.
AI adoption, restructuring, and a narrower geographic focus
Management repeatedly pointed to artificial intelligence as a driver of organizational change. Winklevoss said AI had moved from being used in “only 8%” of production code changes late last summer to more than “40%” of production code changes currently, with an expectation it could approach 100% over time.
He also said Gemini reduced its workforce by roughly 30% since the start of 2026, describing the goal as operating as a smaller, flatter organization. Interim CFO Danijela Stojanovic later quantified headcount at 650 at the end of Q4 (down from 677 in Q3), and said that as of March 1 headcount was approximately 445, reflecting the early 2026 reduction.
In addition to headcount reductions, the company said it has reduced the regions in which it operates by exiting the UK, EU, and Australian markets. Winklevoss said foreign markets had been difficult to win and increased complexity and costs relative to demand. Management said the exits and restructuring are intended to accelerate the company’s path to profitability.
Fourth-quarter results: revenue up sequentially, services growth offsets softer trading
Stojanovic reported Q4 net revenue of $56.4 million, up 13% from $49.8 million in Q3, despite what she characterized as a “materially weaker crypto trading environment.” She attributed the pressure to crypto market volatility and noted Bitcoin fell nearly 47% from its October high during the quarter, weighing on volumes and transaction fees.
Transaction revenue was $26.7 million, up slightly from $26.3 million in Q3, even as spot volumes fell to $11.5 billion from $16.4 billion. Retail volume was $1.6 billion and institutional volume was $9.9 billion. Stojanovic said transaction revenue held up due to improved fee economics and a mix shift in retail activity toward higher-fee order types.
Services revenue was $26.5 million, up 33% sequentially from $19.9 million, which management said represented a key structural shift as services grew to more than a third of revenue.
- Credit card revenue: $16.0 million, up from $8.5 million in Q3. The company added nearly 30,000 new card sign-ups in Q4 and said receivable balances grew to $219.8 million.
- Staking revenue: $5.1 million, down from $5.9 million in Q3, which management attributed largely to lower crypto asset prices. Staking balances ended the quarter at approximately $509 million.
The company also discussed how “auto-staking” integrated with credit card rewards contributed to multi-product engagement, noting Q4 was the first full quarter with card auto-staking rewards live following an October Solana card launch.
Expenses, profitability metrics, and balance sheet updates
Total operating expenses in Q4 were $171.7 million, essentially flat sequentially. Compensation and headcount expenses fell to $72.3 million from $82.5 million due to lower stock-based compensation, which totaled $36.0 million in Q4. Sales and marketing expense rose to $39.0 million from $32.9 million, driven by credit card growth and higher crypto rewards tied to spending. Technology and infrastructure increased to $22.3 million, and general and administrative rose to $24.9 million, with management citing cloud and licensing costs, professional services, and public company costs.
For full-year 2025, Gemini reported:
- Net revenue: $174.0 million, up 24% from $141.0 million in 2024
- Transaction revenue: $98.0 million
- Services and interest revenue: $76.0 million, ahead of prior guidance of $60–$70 million
- Total operating expenses: $525.0 million, up from $308.0 million
- Adjusted EBITDA: loss of $258.0 million (including $33.4 million of net realized and unrealized losses)
- GAAP net loss: $582.8 million, with management noting substantial non-cash items including $178.5 million of fair value losses and $85.0 million of IPO-related stock-based compensation
The company ended the year with approximately $252 million in cash and cash equivalents. Stojanovic said the largest cash outflow in Q4 was a $117 million repayment of the Galaxy loan, which removed that obligation from the balance sheet. She also provided details on the credit card warehouse facility, which had $154.4 million outstanding at year-end against $188 million in pledged receivables, supporting capacity of $250 million.
Early 2026 trends and outlook framework
Management shared early first-quarter 2026 operating indicators through February, while cautioning against extrapolating partial-quarter data. Stojanovic said trading volume was approximately $5.3 billion through February, down from Q4 levels. She said card payment volume exceeded $330 million with over 150,000 open card accounts, and that about 15,000 users had traded on predictions since launch across more than 12,000 listed contracts. Total monthly transacting users were approximately 606,000.
For 2026, Gemini said it is not providing total operating expense guidance but offered category-level expectations, including:
- Compensation (excluding stock-based comp and restructuring): expected to decline 15%–20% versus 2025
- Stock-based compensation: expected at $100 million–$115 million
- Technology and G&A: expected at $155 million–$190 million
- Marketing (excluding rewards/promotions): expected at 10%–15% of revenue
Management said restructuring charges tied to its “Gemini 2.0” plan are expected to total $11 million pre-tax, landing “almost entirely” in Q1 2026 and expected to be cash charges, covering international wind-down costs and headcount reductions. The company expects the plan to be substantially complete by mid-year, subject to local consultation requirements.
In analyst Q&A, management said it had reached “near breakeven” on the credit card in Q4 and described levers it expects to improve card economics over time, including portfolio seasoning, rewards optimization, funding efficiency, and scale-driven improvements. On predictions, Gemini said it would provide a revenue update “in the near future,” characterizing the product as early but encouraging based on initial user engagement.
Asked about liquidity and potential capital raising if crypto volumes remain subdued through 2026 and 2027, management said it is planning conservatively, focusing on cost reductions and building recurring revenue streams that are less dependent on trading volumes, while remaining open to balance sheet strengthening opportunities “on attractive terms.”
About Gemini Space Station (NASDAQ:GEMI)
Our mission is to unlock the next era of financial, creative, and personal freedom. Gemini envisions a future where crypto will redesign the global financial system, the internet, and money in a way that provides greater choice, independence, and opportunity for all. As a trusted bridge between the traditional financial system and the emerging cryptoeconomy, we are providing access for individuals and institutions to a decentralized future that is more open, fair, and secure. Gemini was founded in 2014 to be the most trusted, secure, and easy way to buy, sell, and store crypto assets.
