Gemini Trust Company, the U.S. cryptocurrency exchange that went public on Nasdaq in September 2025, reported a net loss of $159.5 million for the third quarter of 2025, driven by a sharp spike in operating expenses.
IPO Costs Weigh on Bottom Line
According to the exchange’s shareholder letter, operating expenses jumped more than 70% quarter-over-quarter from $98.7 million in Q2 to $171.4 million in Q3. The increase was primarily attributed to IPO-related stock-based compensation ($45.8 million) and higher marketing costs for the bitcoin-branded Gemini credit card and exchange growth initiatives. The exchange made its debut on the Nasdaq on September 12, 2025, and the associated one-time costs weighed heavily on its profitability.
Revenue Growth and Diversification
On the positive side, total revenue rose approximately 34% to $50.6 million, driven by strong performance in both transaction and service segments. Transaction revenue, which includes fees from retail and institutional customers, reached $26.3 million, accounting for just over half of total revenue. The growth was fueled by increased trading volumes across both customer segments, although it was partially offset by lower average fee rates on retail trading.
Service revenue saw an impressive 111% quarter-over-quarter increase to $19.9 million, underscoring the success of Gemini’s diversification efforts beyond pure trading fees. The exchange highlighted that together these results demonstrate the health of its marketplace and the growing depth of liquidity across customer segments.
Expense Details and Future Outlook
Compensation and headcount expenses rose sharply from $36.8 million in Q2 to $82.5 million, with $45.8 million of that attributable to IPO-related stock-based compensation. Marketing and other growth-related costs also contributed to the expense surge.
Looking ahead, Gemini 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. The exchange recently launched a new Solana credit card, building on the momentum of its XRP card, signaling its commitment to diversifying revenue streams. Analysts suggest that as IPO-related costs normalize, Gemini could see improved profitability in the coming quarters.