Gemini Space Station (NASDAQ:GEMI) Issues Quarterly Earnings Results

Gemini Space Station (NASDAQ:GEMI) issued its quarterly earnings results on Friday. The company reported ($0.46) earnings per share for the quarter, topping the consensus estimate of ($1.13) by $0.67, FiscalAI reports. The business had revenue of $40.88 million for the quarter. Gemini Space Station had a negative net margin of 211.28% and a negative return on equity of 90.47%.

Here are the key takeaways from Gemini Space Station’s conference call:

• Revenue fell 19% year over year to $40.9 million as retail trading and large OTC transactions weakened; trading volume was down 73% year over year, despite a sequential increase in institutional activity.
• Operating expenses declined 30% year over year for a third consecutive quarter, and adjusted operating loss narrowed to $39 million. Management also lowered its full-year marketing expense outlook, though it cautioned that adjusted EBITDA benefited from a $25.7 million crypto-related gain in the quarter.
• Gemini’s credit card revenue rose 82% year over year, but card users and receivables declined sequentially, and card provision expense remained significant. Management cited capital constraints and emphasized that growth must meet return targets after rewards, funding, credit losses, and other costs.
• Gemini expanded into prediction markets, derivatives, and U.S. stock trading, and is pursuing distribution partnerships; however, prediction-market revenue remains modest and the company said these launches still need to translate into sustained customer adoption and attractive economics.

Gemini Space Station Stock Down 9.2%

Gemini Space Station stock traded down $0.24 during mid-day trading on Friday, reaching $2.38. 2,419,364 shares of the company’s stock traded hands, compared to its average volume of 1,827,653. The stock has a 50 day moving average of $3.99 and a two-hundred day moving average of $4.90. Gemini Space Station has a 12-month low of $2.31 and a 12-month high of $15.27. The company has a market cap of $308.57 million, a price-to-earnings ratio of -0.68 and a beta of 2.75.

Key Stories Impacting Gemini Space Station

These are some of the GEMI stories that stood out recently:

• Positive Sentiment: Gemini’s quarterly loss was narrower than a year earlier and better than analysts expected, while operating expenses declined 30% year over year. That combination may support optimism about efforts to reduce losses. Zacks earnings report
• Neutral Sentiment: Services revenue and interest income made up 59% of net revenue, showing some diversification beyond trading. Gemini also reportedly sold its U.K. and European businesses to KAST for under $10 million; the deal could help streamline operations, though the reported sale price is modest. Gemini Q3 results Report on U.K. and European unit sale
• Negative Sentiment: Revenue fell 19% to $40.9 million and missed estimates, as platform spot trading volume plunged 73% year over year. The steep decline highlights Gemini’s exposure to weaker trading activity and may offset the benefit of lower expenses and a smaller loss. Article on revenue and trading volume

Institutional Investors Weigh In On Gemini Space Station

Several institutional investors have recently modified their holdings of GEMI. ParaFi Capital LP raised its stake in shares of Gemini Space Station by 430.7% in the second quarter. ParaFi Capital LP now owns 3,428,888 shares of the company’s stock valued at $14,607,000 after acquiring an additional 2,782,786 shares during the period. Gryphon Financial Partners LLC purchased a new position in shares of Gemini Space Station during the first quarter valued at approximately $145,000. Marshall Wace LLP increased its stake in Gemini Space Station by 2.5% in the third quarter. Marshall Wace LLP now owns 1,471,449 shares of the company’s stock worth $7,593,000 after purchasing an additional 35,415 shares during the period. Ieq Capital LLC bought a new stake in shares of Gemini Space Station during the third quarter worth $914,000. Finally, Focus Advisor Solutions LLC bought a new stake in shares of Gemini Space Station during the third quarter worth $67,000.

Analyst Ratings Changes

A number of research analysts recently issued reports on GEMI shares. Truist Financial cut their price objective on Gemini Space Station from $4.50 to $3.50 and set a “hold” rating for the company in a research note on Friday, October 23rd. Cantor Fitzgerald lowered their price target on shares of Gemini Space Station from $7.00 to $5.00 and set a “neutral” rating on the stock in a report on Monday, August 17th. Mizuho set a $7.00 price target on shares of Gemini Space Station in a report on Monday, August 17th. Wall Street Zen upgraded shares of Gemini Space Station from a “strong sell” rating to a “sell” rating in a research report on Saturday. Finally, Rosenblatt Securities reduced their price objective on shares of Gemini Space Station from $9.00 to $6.00 and set a “buy” rating for the company in a research note on Monday, August 17th. Three investment analysts have rated the stock with a Buy rating, five have issued a Hold rating and three have assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and an average price target of $5.67.

Gemini Space Station Company Profile

Gemini Space Station, Inc. operates a cryptocurrency platform offering services to individual and institutional customers. Its products include digital-asset trading and custody, along with tools and services for institutions. Founded in 2014 by Cameron and Tyler Winklevoss, the company is based in New York. Gemini also issues the Gemini dollar, a U.S. dollar–pegged stablecoin. Gemini serves customers in the United States and select international markets, with product availability varying by location and local regulations.