Key Takeaways
Gemini (GEMI) reported fourth-quarter revenue of $60.3 million, a 39% year-over-year increase that surpassed Wall Street's expectations of approximately $51.7 million. While the stock initially surged 14% in after-hours trading, the gains moderated to around 6% by the close.
This marks the second earnings report for the cryptocurrency exchange since its Nasdaq debut last September. The stock has plummeted approximately 82% since reaching its peak following the IPO.
Despite beating revenue expectations, the company's losses significantly worsened. The fourth-quarter net loss was $140.8 million, or $1.22 per share, compared to a loss of $27 million in the same period last year. The full-year 2025 loss reached $585 million, a substantial increase from $156.6 million in 2024.
Co-founders Cameron and Tyler Winklevoss attributed the revenue growth to a fee structure overhaul implemented in late 2025 and increased usage of the Gemini credit card product. This growth occurred despite a decline in trading volume, a metric typically unfavorable for trading platforms.
The Winklevoss twins described the fourth quarter as the company's best revenue quarter in the last three years, though this positive figure masks a significant gap between the company's expenses and its income.
Layoffs and AI
In communications with shareholders, the twin founders revealed that artificial intelligence has already generated over 40% of Gemini's production code modifications, with expectations that this figure will approach 100%. They stated, "Showing up to the office without leveraging AI at Gemini is like showing up with a typewriter instead of a laptop."
In recent months, three key executives, including the Chief Operating Officer, Chief Financial Officer, and Chief Legal Officer, have departed.
Gemini announced in February that it would cease operations in the UK, EU, and Australia due to challenging market conditions. The organization stated its intention to "focus and double down on our efforts in the United States," highlighting a more lenient regulatory environment there under current market regulations.
Predictions Platform and Payment Card
Gemini launched its proprietary prediction market platform, Gemini Predictions, in December 2025, securing approval from the Commodity Futures Trading Commission across all 50 U.S. states.
The Winklevoss brothers indicated plans to further enhance and expand the product in 2026. They also stated intentions to leverage the same infrastructure for perpetual futures trading once U.S. regulatory approval is obtained.
The payment card product and core trading operations remain strategic priorities for the company.