Gemini Space Station Inc’s (GEMI) shares jumped more than 25% in pre-market trading despite recording a net loss of $109 million in the first quarter of 2026.
The crypto exchange founded by the Winklevoss twins’ revenue improved 42% year-over-year to $50.3 million, according to Gemini’s latest earnings report. This helped narrow its net loss by 27% from $149.3 million a year earlier.
However, the $109 million loss, or 93 cents per share, still missed analysts’ estimates of a 61-cent loss.
Gemini has been on an ongoing streak of unprofitable periods as the firm spends to transform its business model. Heavy spending, particularly on marketing and IPO-related costs, led to a net loss of $159.5 million in the third quarter of last year. In September, the company reported a net loss of $283 million in the first half of the year.
Operating expenses ballooned 73% year-over-year to $144.5 million. This surge was led by a 91% rise in compensation costs, which included $6.5 million in severance for a recent round of layoffs, and a doubling of sales and marketing outlays to $19.1 million.
The firm is betting that a “leaner” workforce and the $100 million bitcoin-funded investment from Winklevoss Capital Fund, LLC will provide the runaway it needs to achieve profitability.
Gemini shuttered operations in the U.K., the European Union (EU) and Australia in February. It also reduced its workforce by 25%, in a move it said was aimed at focusing on the U.S. markets and into prediction markets. Its shares rose following this move from $6.19 in late February to a low of $4.04 on March 30.
In April, it secured its Commodity Futures Trading Commission (CFTC) approval for a derivatives clearinghouse (DCO) license, allowing it to enter regulated derivatives and crypto’s fastest-growing, most-contested sector, prediction markets.
Since then, its shares have gradually climbed to a current price hovering over $6.60 after a pre-market surge of over 25%.
