Gemini shares climbed roughly 7% in after-hours trading on Thursday, reaching $6.45 after closing at $6.01, as investors responded positively to the crypto exchange’s shifting revenue mix and cost-reduction measures. The gains came despite a notable drop in trading activity during the fourth quarter. A shareholder letter published the same day outlined the company’s financial results and strategic direction.
Fourth-quarter trading volume came in at $11.5 billion, representing a 30% decline from the previous quarter as activity across the broader crypto market cooled. Even so, transaction revenue remained relatively stable, supported by adjustments to fee structures and a greater proportion of retail trades using premium order types. The resilience of transaction revenue appeared to reassure investors despite the volume contraction.
More significantly, services and interest revenue exceeded transaction revenue for the first time in the quarter, signaling a structural shift away from dependence on trading activity. Services revenue grew 33% quarter-on-quarter to $26.5 million, driven by expansion in the company’s credit card business and increased user engagement. For the full year, services revenue more than doubled, contributing to a 26% rise in total revenue to $179.6 million, though Gemini still recorded a net loss of $582.8 million for 2025.
A central element of Gemini’s repositioning is its entry into prediction markets. The company launched a regulated prediction markets platform in December after obtaining a Designated Contract Market licence from the Commodity Futures Trading Commission, enabling users to trade contracts tied to the outcomes of real-world events. Since the platform’s launch, more than 15,000 users have traded across categories including crypto prices, politics, and sports.
The company described the product as a meaningful new source of transaction revenue that operates independently of crypto market cycles. In its shareholder letter, Gemini stated that prediction markets are “forecasting the future more accurately and more quickly than traditional pollsters, experts, and media,” characterising the development as a fundamental shift in how society establishes truth. The firm views the platform as a long-term growth driver distinct from its core exchange business.
Gemini’s credit card offering also continued to expand, with transaction volume surpassing $1.2 billion in 2025 and revenue from the product rising sharply compared to the prior year. The card business has become a key contributor to services revenue growth and user retention. The company indicated it intends to build further products aimed at deepening engagement across its platform.
To support its path toward profitability, Gemini has undertaken a significant restructuring. The firm reduced its workforce by approximately 30% and announced plans to exit several international markets, including the UK, EU, and Australia, in order to concentrate resources on its U.S. operations. These measures are expected to lower operating expenses and bring the company closer to a sustainable financial position. Investors appeared to view the combination of a more diversified revenue base, new product offerings, and leaner operations as a credible strategy for reducing reliance on unpredictable crypto trading volumes.
Originally reported by Decrypt.
