Gemini's first earnings report after IPO: Revenue surged 52%, but stock price hit an all-time low

According to The Block, Gemini has released its first quarterly financial report since going public, with net revenue of nearly $50 million in the third quarter, a 52% increase quarter-over-quarter. Trading volume reached $16.4 billion, up 45% from the previous quarter, with institutional trading volume growing by nearly 50%. Trading fees exceeded $26 million, and service revenue was approximately $20 million, accounting for nearly 40%, a significant increase from less than 30% in the same period last year.

Gemini's crypto credit card has performed well, with over 100,000 accounts opened and quarterly spending reaching $350 million, doubling quarter-over-quarter; staking balances reached $741 million. The company also obtained a European MiCA license, entered Australia in early October, and launched a self-custody wallet to accelerate its international expansion. Gemini has repaid its debts and established a $150 million credit line for credit card receivables, expecting total service and interest income of $60 million to $70 million for the year.

However, due to IPO-related stock compensation and marketing expenses, the company reported a net loss of $159.5 million, or $6.67 per share, with adjusted EBITDA at -$52.4 million. Following the earnings report, GEMI's stock price plummeted over 11% in after-hours trading, falling below $15, marking a new low since its IPO, as investors worried about the widening losses.