Gemini’s Q3 Growth Soars—But Wall Street Punishes Stock as Losses Spark Profitability Fears

Gemini posts explosive Q3 revenue gains—yet investors flee as red ink triggers alarm bells.

Growth vs. Pain

The crypto exchange notched double-digit expansion despite bleeding cash—classic 'growth at all costs' tech playbook. Trading volumes surged, but operating losses deepened like a Bitcoin bear market.

Street Reaction

Shares tanked 8% post-announcement as analysts grilled management on path to profitability. 'Show me the money' seems to be Wall Street's new mantra after years of subsidizing crypto infrastructure.

The Bottom Line

Another case of 'great business, terrible stock'—until Gemini proves it can monetize its user base beyond just selling shovels in the digital gold rush.

The crypto exchange and financial services platform delivered what co-founders Cameron and Tyler Winklevoss called their strongest quarterly performance in recent years, marked by significant milestones in user acquisition and product expansion, though elevated expenses and continued losses dampened market sentiment.

Trading volumes reached a multi-year high of $16.4 billion, up 45% from the previous quarter, with institutional volumes climbing 49% to $14.6 billion and retail volumes increasing 20% to $1.8 billion. Transaction revenue totaled $26.3 million, up 26% quarter-over-quarter, Gemini said in its Q3 2025 earnings report.

The company's Gemini Credit Card emerged as a key growth driver, surpassing 100,000 open accounts with over $350 million in quarterly transaction volume—more than doubling from the prior quarter. Card revenue reached $8.5 million, with 64,000 new signups in Q3 compared to 17,000 in Q2.

"We are building that super app in that future," said Cameron Winklevoss in the earnings call, emphasizing the company's vision of creating an integrated platform for crypto and traditional finance. Tyler Winklevoss added: "Trust drives engagement, engagement builds liquidity."

Services revenue, including credit card, staking, and custody operations, accounted for nearly 40% of total revenue at $19.9 million, up from less than 30% a year prior. Staking revenue increased to $5.9 million, supported by the company's first full quarter of solana staking in the U.S.

The quarter also saw significant regulatory and geographic expansion. Gemini secured a MiCA license from Malta's Financial Services Authority, enabling crypto services across 30 European jurisdictions, and launched operations in Australia following AUSTRAC registration.

Operating expenses totaled $171.4 million, up $72.7 million sequentially, primarily due to $44 million in IPO-related stock-based compensation. The steep expense increase, combined with ongoing losses, appeared to weigh on investor sentiment despite the company's characterization of costs as strategic investments. The company established a $150 million credit facility to finance card receivables and paid down existing debt following its public listing.

Looking ahead, Gemini projects services revenue of $60-70 million for fiscal 2025 and expects technology and G&A expenses between $140-155 million, with marketing spend of $45-60 million. The company maintains guidance for 20-25% compound growth in monthly transacting users over the medium term.