**Gemini Stock Falls After Post-IPO Earnings Reveal Mounting Losses Despite Revenue Growth**
Gemini’s stock declined in post-market trading after the company released its first quarterly earnings report since its initial public offering (IPO) in September 2025. Although the crypto exchange saw a 52% increase in net quarterly revenue, it posted a net loss of $159.5 million, as operating expenses more than doubled compared to the same period last year.
### Gemini’s Q3 2025 Financial Performance
The third quarter of 2025 marked a pivotal period for Gemini, which debuted on the Nasdaq under the symbol GEMI. In its latest shareholder letter, the company highlighted that net revenue reached $49.8 million, a 52% jump from the previous quarter.
Transaction revenue grew 26% quarter-over-quarter to $26.3 million, while services revenue surged 111% to $19.9 million. Gemini attributed the strong growth in its service segment to increased adoption of products like its credit card, staking, and custody offerings.
### Rising Expenses Overshadow Revenue Growth
Despite robust revenue figures, Gemini’s growing expenses overshadowed its progress. The company posted a net loss of $159.5 million, compared with a $90.2 million loss a year earlier. These losses came as costs swelled amid the lead-up to and aftermath of the IPO.
Loss per share came in at $6.67, falling short of analysts’ expectations for a $3.24 loss per share.
Total operating expenses more than doubled, reaching $171.4 million, up from $76.8 million one year ago. The largest increases were in salaries and compensation, which rose to $82.5 million, and sales and marketing, which jumped to $32.9 million as Gemini intensified its promotional efforts. Adjusted EBITDA was negative $52.4 million for the quarter.
> “We believe the increase in operating expenses this quarter primarily reflected higher marketing and customer reward investments, and elevated stock-based compensation costs associated with our transition to life as a public company. Our expense trends otherwise remained consistent with our investment in growth and platform scale,” the shareholder letter stated.
### Mixed Crypto-Related Results
Gemini also recorded mixed results from its crypto-related positions. The company posted a $106.8 million gain on digital assets, but this was partially offset by an $83.1 million loss on related-party crypto loans.
### Investor Sentiment and Market Reaction
Despite strong revenue momentum, the widening losses weighed on investor confidence, sending Gemini’s shares lower after the earnings release. According to Google Finance data, GEMI closed at $16.84—up more than 4% on the day. However, in post-market trading, the stock dropped by 6.18%.
This performance stands in contrast to competitors like Coinbase, whose stock climbed after reporting a $433 million profit for the third quarter.
### What’s Next for Gemini?
With investors focused on the future, the key question is whether Gemini can transition from growth-oriented spending to sustained profitability in the coming quarters. The company’s ability to manage costs and turn strong revenue growth into net profits will be closely watched moving forward.
https://bitcoinethereumnews.com/tech/gemini-stock-slides-as-q3-loss-overshadows-revenue-growth/
