Crypto exchange Gemini reported a second-quarter net loss of $107.7 million, extending a streak of four consecutive quarterly losses as platform assets fell sharply and institutional custody outflows accelerated.
[Revenue rose 37% year over year to $45.5 million], according to the company's announcement, but operating expenses of $122.4 million outpaced income. Platform assets declined 54% to $8.4 billion from $18.2 billion in the prior year, a retreat Gemini attributed to lower crypto prices and institutional custody outflows. The operating loss narrowed 18% from the previous quarter despite the continued net loss.
Gemini, founded by twins Cameron and Tyler Winklevoss in 2014, operates as a spot exchange and custody platform. The company has processed over $1 trillion in cumulative trading volume since inception and holds regulatory licenses in multiple U.S. states and jurisdictions including New York's BitLicense. Institutional assets under custody form a material portion of Gemini's revenue base, making custody outflows particularly consequential to the platform's financial performance.
The exchange is pursuing revenue diversification to offset pressure in core trading and custody. Prediction markets launched during the quarter generated $500,000 in revenue. Gemini has also expanded into stock trading, though the results of that initiative did not materially impact second-quarter financials. The company did not disclose user count or trading volume comparables in its announcement.
Gemini's four-quarter loss streak coincides with prolonged weakness in institutional demand for custody and trading services across the sector. Competing platforms including Kraken and Coinbase have similarly reported margin compression and custody outflows over comparable periods. Crypto market volatility in 2025 and 2026 has reduced active trading volumes at major exchanges industry-wide.
The 18% operating loss improvement quarter-over-quarter tracks Gemini's cost structure adjustments against the scale of asset outflows. Four consecutive quarterly losses mean the company has not yet stabilized profitability, and revenue growth of 37% year over year has been insufficient to offset the 54% decline in platform assets on a net basis. Gemini's ability to expand prediction markets and stock trading into meaningful revenue sources will determine whether the loss streak breaks in coming quarters.
