Gemini reported second quarter results on August 13, and the headline was growth. Revenue reached $45.5 million, up 37 percent from a year earlier. Underneath that figure sits a stranger pairing. The credit card business at Gemini brought in $16.2 million for the quarter. The provision the company took for fraud losses on that same card book was $16.1 million.
The two numbers landed within a hundred thousand dollars of each other. The card line grew 231 percent year over year, faster than anything else Gemini runs, and it was also where the damage came from. Management tied the $16.1 million charge to an identity fraud event and said the losses were "concentrated within this identified fraud-related cohort." The fastest-growing product doubled as the largest single loss center.
The trading engine shrank by two thirds
Look past the growth lines and the core exchange is smaller than it was. Gemini processed $3.8 billion in trading volume last quarter. A year earlier it processed $11.3 billion. That is a drop of about two thirds, and it explains why the company has spent the past nine months leaning harder on cards and staking. Coinbase has watched the same trend play out on its own books, where trading revenue slid to roughly $5 million a day and subscriptions took over.
| Line | Q2 2026 | Change year over year |
|---|---|---|
| Total revenue | $45.5M | up 37% |
| Exchange trading volume | $3.8B | down about two thirds |
| Services and interest | $26.0M | up 117% |
| Credit card revenue | $16.2M | up 231% |
| Staking | $4.0M | up 50% |
| Net loss | $107.7M | improved 19% |
Services and interest, at $26 million, is now the biggest single contributor and it more than doubled. Staking added $4 million. Credit card revenue, before the fraud charge, added $16.2 million. Trading, the business the Gemini name has carried since 2014, no longer sits at the center of the company. The pivot is not new. Gemini spent much of the past year collecting licenses and product approvals, including the derivatives clearing license it won earlier this year.
A narrower loss, still north of $100 million
Net loss for the quarter was $107.7 million. That is an improvement, down about 19 percent from the $133.2 million Gemini lost in the same period of 2025. Adjusted EBITDA went the other way, falling to negative $74 million from negative $51.9 million, which the company blamed partly on bitcoin losses from a May private placement.
Investors read the release fast. GEMI fell about 7 percent to $4.00 in after hours trading, adding to a slide that has dogged the stock since its debut. The pattern rhymes with what Kraken's parent posted a day earlier, where revenue rose 17 percent while profit dropped 71 percent. Both exchanges are growing on paper and bleeding on the bottom line.
Gemini's trouble is not that it stopped growing. Revenue grew, and services more than doubled. The trouble is what the growth is dragging in beside it. A card portfolio expanding at 231 percent a year is also a wider surface for fraud, and this quarter is the first time that cost showed up at real scale.
