U.S. cryptocurrency exchange Gemini posted a net loss of $159.5 million in the third quarter of this year after its operating expenses surged by more than 70%. Operating expenses jumped from $98.7 million in Q2 to $171.4 million. The exchange, which made its debut on the Nasdaq on Sept. 12, 2025, primarily attributed the sharp increase in expenses to costs associated with its initial public offering (IPO).

The exchange specifically cited IPO-related stock-based compensation and marketing costs tied to the bitcoin-branded Gemini credit card and exchange growth initiatives. In contrast to the expense surge, the crypto exchange’s total revenues rose by approximately 34% to $50.6 million, primarily driven by service revenue.

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Transaction revenue, a key income stream, consisting of fees from retail and institutional customers, accounted for just over half, or $26.3 million. This growth was fueled by a surge in trading volumes across both customer segments, although it was partially offset by lower average fee rates on retail trading.

Revenues from the service business mix rose by a substantial 111% quarter-over-quarter (QoQ) to $19.9 million, underscoring the growing importance of the exchange’s diversification efforts.

Gemini highlighted the positive revenue trends, noting, “Together, we believe that these results demonstrate the health of Gemini’s marketplace and the growing depth of liquidity across customer segments.” The exchange affirmed its belief that its dual-channel strategy, serving both retail and institutional markets, continues to drive balanced growth.

The exchange’s letter to shareholders provided a detailed breakdown of the $171.4 million in expenses. Compensation and headcount expenses rose sharply, increasing from $36.8 million in Q2 to $82.5 million. The increase is overwhelmingly attributable to $45.8 million in stock-based compensation associated with IPO-related equity awards.

Looking ahead, the crypto exchange stated it expects to continue building a platform designed to capture upside in a bull market while laying the groundwork for long-term resilience in any market environment.

• Why did Gemini report a loss? Gemini posted a $159.5M net loss due to IPO‑related costs and rising expenses.
• How much did operating expenses grow? Expenses surged over 70%, climbing from $98.7M in Q2 to $171.4M in Q3.
• Did Gemini’s revenue increase? Yes, total revenue rose 34% to $50.6M, driven mainly by service and transaction fees.
• What is Gemini’s outlook? The exchange plans to build resilience while positioning for upside in future bull markets.

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