Gemini's Q2 Revenue Jumps 37% as Card Fraud Drives Net Loss to $107.7M

Crypto exchange Gemini reported revenue of $45.5 million for the second quarter of 2026, up 37% from a year earlier. Despite the higher revenue, the company posted a net loss of $107.7 million, well above last year's figure.

The gap between rising revenue and a wider loss comes from two processes moving in opposite directions. The exchange's trading business shrank by almost two-thirds, while its services segment (credit card and staking) grew by dozens to hundreds of percent. A credit loss provision tied to a fraud incident on the card product added further pressure on profit.

$45.5M in Revenue, $107.7M in Losses

Gemini's total revenue for April through June rose 37% year over year to $45.5 million. Net loss came to $107.7 million. The gap between the two figures comes down mostly to two factors the company disclosed in its report: a sharp drop in trading volume and a one-time credit loss provision.

Both processes unfolded at the same time and largely offset the gains from the growing services business. The company did not publish separate third-quarter guidance, only noting that its cost-cutting program would continue.

Trading Business Shrinks by Almost Two-Thirds

Revenue from exchange trading, where users buy and sell Bitcoin, Ethereum and other assets, fell 38% year over year to $12.5 million. Trading volume dropped even more sharply, from $11.3 billion to $3.8 billion, nearly a two-thirds decline.

The decline fits a broader 2026 pattern: spot trading volume on centralized exchanges is losing ground to derivatives and DeFi protocols, while some active traders are shifting to platforms with lower fees.

Services Business Grows 2.5x

Unlike trading, Gemini's services segment grew sharply. Services revenue climbed 149% year over year to $23.5 million. The credit card was the biggest contributor, with revenue up 231% to $16.2 million. The card offers cashback in crypto, and growth in cardholder numbers, rather than one-off promotions, drove that increase through the quarter.

Staking revenue rose 50% to $4 million. Assets available for staking on the exchange include Ethereum, one of the most widely staked assets in the market. Combined with interest income, services revenue and interest brought in $26 million for the quarter.

A $16.1M Fraud Provision Explains Part of the Loss

The company's transaction losses grew to $20.1 million from $3.6 million a year earlier. The main driver was a $16.1 million credit loss provision tied to an identity fraud incident within the card portfolio.

The company said the elevated provision was concentrated among the affected accounts and did not reflect broader deterioration in the portfolio. It did not disclose how many customers were affected. For a card business that only recently started generating meaningful revenue, the incident tests how well the model holds up under a one-off shock.

• Operating expenses rose 24% year over year to $122.4 million.
• Cost cuts: compared with the first quarter, operating expenses fell 15% on cost-cutting measures announced earlier this year.
• Transaction losses excluding the one-time provision remain higher than a year ago as the card business keeps expanding.
• The company confirmed it plans to keep cutting costs in coming quarters.

How the Market Reacted

Gemini's stock rose 3% during Thursday's regular session when the report came out, then fell nearly 5% in Friday's pre-market trading, according to Yahoo Finance data. That delayed negative reaction is typical for reports where rising revenue initially masks one-time expense items.

For the market, Gemini's report echoes a pattern already seen at several other public crypto companies this earnings season: core business lines are diversifying toward services and card products, while classic exchange trading is steadily losing weight in the revenue mix. The next quarterly report will show whether that balance holds or trading volumes recover along with the market.

Other public crypto companies posted similar earnings this week, with the same tension between growth in specific segments and pressure on profit, including Kraken's parent company, Payward, whose revenue is also increasingly built outside classic crypto trading.