Q2 2026 Gemini Space Station Inc Earnings Call Transcript
Key Points
- Total revenue grew 37% year-over-year to $45.5 million, driven by strong growth in services revenue and OTC business.
- Services revenue and interest income reached $26 million, up 117% year-over-year, now representing 59% of net revenue.
- Operating expenses declined 15% sequentially, and headcount is down 40% from peak, reflecting successful cost restructuring.
- Prediction markets showed strong growth, with event contracts traded up 93% quarter-over-quarter and new monthly highs in July.
- The company has built a comprehensive regulated derivatives stack (DCM, DCO, FCM application) and is ready to launch perpetual futures for US customers upon approval.
- Exchange revenue declined 38% year-over-year due to continued softness in crypto trading volumes, with spot trading volume down 66%.
- Net loss was $107.7 million, and adjusted EBITDA loss widened to $74 million, partly due to non-cash mark-to-market losses on Bitcoin holdings.
- Transaction losses increased significantly to $20.1 million, driven by a higher provision for credit losses related to an identity fraud event in the credit card portfolio.
- Card MTUs declined 7% sequentially, and new sign-ups were only 5,000 due to a deliberate pullback in acquisition marketing.
- Custodial fee revenue fell 67% year-over-year, reflecting lower asset valuations and net custody outflows, with assets on platform down to $8.4 billion from $18.2 billion a year ago.
Good day and thank you for standing by. Welcome to the Gemini second-quarter 2026 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Ryan Todd, Head of Investor Relations. Please go ahead.
Thanks, operator. Good morning and thank you for joining Gemini second-quarter 2026 earnings call. My name is Ryan Todd, Head of Investor Relations at Gemini. Joining me on the call today are Gemini's Co-Founders, Cameron and Tyler Winklevoss; and our interim CFO, Danijela Stojanovic.
Yesterday, we released our second-quarter 2026 financial results. During today's call, we may make forward-looking statements, which may vary materially from actual results and are based on management's current expectations, forecasts, and assumptions. Information concerning the risks, uncertainties, and other factors that could cause these results to differ is included in our SEC filings.
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