Gemini Space Station Inc (GEMI), the crypto exchange founded by the Winklevoss twins, saw its stock jump over 25% in pre-market trading, even as it reported a net loss of $109 million for the first quarter of 2026.
The company’s revenue improved 42% year-over-year to $50.3 million, according to its latest earnings report. That helped narrow the net loss by 27% compared to $149.3 million a year earlier. But the loss of 93 cents per share still missed analysts’ estimates, who had forecast a smaller loss of 61 cents per share.
Continued Spending and Losses
Gemini has been on an ongoing streak of unprofitable periods as it spends heavily to transform its business model. Marketing costs and expenses tied to a potential IPO have driven deep losses. For the third quarter of last year, the net loss was $159.5 million. Back in September, the company reported a staggering $283 million loss for the first half of the year.
Operating expenses ballooned 73% year-over-year to $144.5 million. This surge was driven by a 91% rise in compensation costs, which included $6.5 million in severance for a recent round of layoffs. Sales and marketing outlays also doubled to $19.1 million.
Gambling on a Leaner Future
The firm is betting that a “leaner” workforce and a $100 million bitcoin-funded investment from Winklevoss Capital Fund will give it the runway it needs to achieve profitability. In February, Gemini shut down operations in the U.K., the European Union, and Australia. It also reduced its workforce by 25%, a move it said was aimed at focusing on the U.S. market and prediction markets.
Its shares rose following this announcement, climbing from $6.19 in late February before dropping to a low of $4.04 on March 30. In April, the company secured approval from the Commodity Futures Trading Commission (CFTC) for a derivatives clearinghouse (DCO) license. This allows it to enter regulated derivatives and prediction markets, which is crypto’s fastest-growing and most competitive sector. Since then, shares have gradually climbed back to over $6.60 after the pre-market surge.
