Gemini reported a net loss of $107.7 million for the second quarter of 2026, marking its fourth consecutive quarterly loss since going public, according to the company's official second-quarter results release. The loss narrowed 19% from $133.2 million a year earlier, even as total revenue climbed 37% year over year to $45.5 million.
The revenue growth masks a sharp divergence beneath the surface: core exchange revenue fell 38% as trading activity weakened, with spot trading volume dropping 66% year over year to $3.8 billion from $11.3 billion a year prior. Assets on the platform declined 54% to $8.4 billion, reflecting both lower crypto prices and institutional custody outflows over the period.
Diversification Is Doing the Heavy Lifting
What kept overall revenue growing despite the exchange-business slump was Gemini's push into products less directly tied to spot trading volume. Services and interest income rose 117% to $26.0 million and now make up the majority of net revenue, credit card revenue jumped 231% to $16.2 million, and staking revenue grew 50% to $4 million. That mix shift illustrates a strategy increasingly common among crypto exchanges under pressure from thinning trading margins: build recurring, less market-cycle-sensitive revenue streams to offset a core trading business that rises and falls with market activity.
The quarter wasn't without a specific setback, however — a sharp rise in transaction losses tied to an identity fraud event affecting Gemini's credit card portfolio forced the company to set aside a $16.1 million provision for credit losses, a cost that ate directly into the quarter's bottom line.
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Building for a Broader Business
Gemini's July 2026 launch of commission-free U.S. stock trading extends its diversification push further beyond crypto, following a path other major exchanges have taken this year as they compete to build multi-product platforms rather than relying on crypto spot volume alone. Whether that strategy closes the gap to profitability will depend on how quickly the newer, higher-margin revenue lines can scale relative to the shrinking core exchange business — a fourth straight quarterly loss suggests the transition is still very much in progress rather than complete.
