Cryptocurrency exchange Gemini saw its shares rise over 7% in after-hours trading following its latest financial results. The company reported that services and interest revenue surpassed trading revenue for the first time, a major shift driven by its credit card business amid aggressive cost-cutting. Trading volumes fell 30% quarter-on-quarter to $11.5 billion as overall market activity softened. The company also highlighted early user growth for its newly launched, regulated prediction markets platform, which it operates under a U.S. Commodity Futures Trading Commission licence.
Shares of Gemini climbed about 7% in after-hours trading as investors reacted to a significant shift in its revenue mix. For the first time, services and interest revenue exceeded transaction revenue, marking a move away from reliance on volatile crypto trading.
Fourth-quarter trading volume fell 30% from the prior quarter to $11.5 billion, reflecting softer overall market activity. Despite this decline, transaction revenue held steady due to fee structure changes and a higher mix of retail trades using premium order types.
Services revenue rose 33% quarter-on-quarter to $26.5 million, largely driven by growth in its credit card business. For the full year, the company’s total revenue increased 26% to $179.6 million, though it posted a net loss of $582.8 million for 2025.
The exchange is repositioning beyond its core trading business after launching a regulated prediction markets platform in December. The company secured a Designated Contract Market licence from the Commodity Futures Trading Commission, allowing users to trade on real-world event outcomes.
Since launch, more than 15,000 users have traded contracts on topics including crypto prices, politics, and sports. “From politics to economic indicators, business, tech, culture, and sports, prediction markets are forecasting the future more accurately and more quickly than traditional pollsters, experts, and media,” the company stated in a shareholder letter.
This expansion comes as the company faces a class-action lawsuit alleging it misled investors by not disclosing its prediction markets plans in IPO filings. Simultaneously, the firm has cut roughly 30% of its workforce and is exiting several international markets to focus on its U.S. business.
