Key Takeaways
- Gemini (GEMI) shares spiked as high as 14% in extended trading following better-than-expected Q4 financial results
- Fourth-quarter revenue climbed 39% year-over-year to reach $60.3 million, marking the company’s strongest quarterly performance in three years
- Quarterly net loss expanded to $140.8 million in Q4 from $27 million in the prior-year period; annual 2025 losses totaled $585 million
- The crypto exchange has eliminated approximately 30% of its staff since early 2026, partially attributing cuts to AI automation in development
- Gemini is withdrawing operations from the UK, EU and Australia to concentrate resources on the US marketplace
Gemini (GEMI) delivered fourth-quarter revenue of $60.3 million, representing a 39% increase compared to the same period last year and surpassing Wall Street’s consensus estimate of approximately $51.7 million. Shares jumped as much as 14% in after-hours trading before moderating to a 6% gain.
The quarterly report marks the crypto exchange’s second earnings release since its Nasdaq debut in September. Since reaching its post-IPO peak, the stock has declined roughly 82%.
While revenue exceeded expectations, profitability metrics deteriorated significantly. The company reported a Q4 net loss of $140.8 million, equivalent to $1.22 per share, substantially higher than the $27 million loss recorded in the comparable quarter of the previous year. For the complete 2025 fiscal year, losses totaled $585 million, up sharply from $156.6 million in 2024.
Gemini Space Station, Inc. Class A Common Stock, GEMI
Co-founders Cameron and Tyler Winklevoss credited the revenue expansion to fee structure modifications implemented during the latter half of 2025, combined with increased uptake of Gemini’s credit card offering. Notably, this growth occurred despite declining trading volumes — typically an unfavorable indicator for exchange platforms.
The Winklevoss twins highlighted that Q4 represented the exchange’s strongest revenue performance in three years, delivering a positive headline metric. However, the expanding losses underscore the significant gap between operational expenses and revenue generation.
Staff Reductions and AI Integration
Gemini disclosed that it has reduced its workforce by approximately 30% since the beginning of 2026. The company had previously announced in February plans to eliminate 25% of positions, citing increased reliance on artificial intelligence technologies as a contributing factor.
In their letter to shareholders, the brothers revealed that AI now generates more than 40% of Gemini’s production code modifications, with expectations for that percentage to approach 100%. “Not using AI at Gemini will soon be the equivalent of showing up to work with a typewriter instead of a laptop,” they stated.
Additionally, three C-suite executives — the Chief Operating Officer, Chief Financial Officer and Chief Legal Officer — have exited the organization in recent months.
These developments unfold against a challenging cryptocurrency landscape. Bitcoin experienced a sharp correction from its all-time peak above $126,000 in October 2025, creating headwinds for crypto-related equities.
Gemini revealed in February its decision to cease operations in the UK, EU and Australia, citing challenging market dynamics. The exchange stated its intention to “focus and double down on America,” highlighting what it perceives as a more supportive regulatory framework in the US under current oversight authorities.
Predictions Platform and Card Business
Gemini introduced its proprietary prediction market, Gemini Predictions, nationwide across all 50 US states in December 2025, following approval from the Commodity Futures Trading Commission.
The Winklevoss brothers indicated plans to enhance and broaden that offering throughout 2026. They also mentioned intentions to leverage the same technological infrastructure for perpetual futures contracts, contingent upon receiving US regulatory clearance.
The credit card program and primary exchange operations remain central strategic focuses alongside the predictions platform for the coming year.
Citigroup analyst Peter Christiansen has previously noted that Gemini requires distinct competitive advantages to challenge larger competitors like Coinbase. “Without any real, true differentiation and some value propositions that others don’t have, we just think it’s going to be hard for them to catch up,” he commented.
GEMI closed Thursday’s regular trading session unchanged at approximately $6.00.
