10-Q · May 14, 2026
Gemini reported Q1 2026 financial results, with revenues of $50.3 million, up from $35.3 million in Q1 2025, representing a 42% year-on-year increase. The operating loss for the quarter was $94.2 million, compared to a…
Earnings analysis · 10-Q
GEMI earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Gemini delivered 36.6% year-over-year revenue growth to $45.475 million, with strong credit-card, OTC, advisory, and prediction-markets contributions offsetting a 38% decline in exchange revenue. Sequential operating…
Read full summary
Gemini delivered 36.6% year-over-year revenue growth to $45.475 million, with strong credit-card, OTC, advisory, and prediction-markets contributions offsetting a 38% decline in exchange revenue. Sequential operating loss improved to $76.941 million, but net loss remained $107.724 million, operating cash flow was negative $105.877 million for the first six months, and credit-card fraud-related provisions increased sharply. Liquidity was supported by a $100.0 million bitcoin-funded private placement and new borrowing arrangements, but cash declined to $188.6 million and material internal-control weaknesses remain unresolved.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.89
- Operating margin
- -169%
What stood out
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Revenue and User Base Expanded
Total revenue increased 36.6% year over year to $45.475 million from $33.289 million. The company served approximately 580,000 monthly transacting users and held $8.4 billion of assets on platform as of June 30, 2026.
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Services Revenue Diversified Growth
Services revenue grew 149% year over year to $23.531 million, led by credit-card revenue of $16.178 million, up 231% to $4.882 million, and advisory-fee revenue of $2.709 million versus none in the prior-year period.
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OTC Activity More Than Rebounded
OTC revenue increased 671% year over year to $4.709 million from $0.611 million, driven by higher institutional activity, several large client-driven transactions, and expansion of the electronic OTC platform.
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Sequential Operating Cost Improvement
Operating loss improved sequentially to $76.941 million from approximately $93.7 million in Q1 2026, while employee compensation excluding stock-based compensation and restructuring declined 20% year over year to $27.919 million.
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Liquidity Supported by Private Placement
Cash and cash equivalents were $188.6 million at June 30, 2026, and management said liquidity should cover working-capital and capital-expenditure needs for at least the next 12 months. The company also completed a $100.0 million bitcoin-funded private placement on May 14, 2026.
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New Markets Broaden Product Scope
The company launched U.S. stocks in July 2026 through a FINRA-registered broker-dealer affiliate, adding a new market to Gemini Predictions, which generated $0.524 million of revenue in the quarter.
What to watch
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Losses and Cash Burn Remain Significant
Net loss increased to $107.724 million from $133.212 million in the prior-year quarter, while Adjusted EBITDA declined to negative $74.034 million from negative $51.875 million. Stock-based compensation rose 1,058% year over year to $20.304 million.
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Credit Card Fraud Losses Escalated
The company recorded $16.062 million of credit-card expected-credit-loss provision, up 843% year over year, and said its investigation identified additional fraud patterns and affected accounts within the same cohort. Six-month transaction losses included a separate $4.083 million fraud reserve.
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Operating Cash Flow Deteriorated
Operating cash flow was negative $105.877 million for the six months ended June 30, 2026, versus negative $18.528 million in the prior-year period. Capitalized software and software, property and equipment purchases were $1.8 million, but the filing does not disclose positive free cash flow.
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Liquidity Depends on Borrowing Capacity
Cash and cash equivalents declined to $188.6 million from $252.2 million at December 31, 2025, while the company had $146.9 million outstanding under the Ripple Credit Agreement and $75.0 million outstanding under the Galaxy MLA at June 30, 2026.
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Material Weaknesses Remain Unremediated
The company disclosed that its disclosure controls and procedures were not effective as of June 30, 2026 because of previously identified material weaknesses, including weaknesses in digital-asset reconciliation and controls over new-product launches.
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Earn-Related Litigation Continues
As of July 30, 2026, Gemini faced 376 arbitrations filed by Earn users seeking additional interest beyond their Genesis recovery; 15 bellwether arbitrations were agreed, with five completed, five awaiting decisions, and five expected before year-end 2026.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management stated that existing cash, available borrowing capacity, the May 14, 2026 private placement proceeds, and anticipated cost savings are expected to fund working-capital and capital-expenditure needs for at least the next 12 months.
Earlier filings 2
10-K · March 31, 2026
Gemini positions itself as a regulated, security-first crypto platform focused on an integrated suite of trading, custody, staking, card, and prediction market products. The 10‑K highlights product expansion (Gemini…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.