Gemini (GEMI) Stock Soars 30% as Credit Card Business Powers Q1 Revenue Beat

Key Takeaways

• Q1 2026 revenue reached $50.3 million for Gemini, marking a 42% increase compared to the prior year period.
• The credit card division delivered explosive growth with revenue climbing nearly 300% to $14.7 million, representing close to half of total revenue.
• Exchange revenue from crypto trading declined 27% to $17.2 million amid a sharp drop in trading volumes from $13.5 billion to $6.3 billion.
• Shares of Gemini (GEMI) spiked as much as 30% during after-hours trading Thursday, touching $4.92, despite being down 47% for the year.
• The firm posted a $109 million net loss and revealed its prediction market platform has processed over 100 million contracts since its December debut.

The cryptocurrency exchange established by twin entrepreneurs Tyler and Cameron Winklevoss delivered first-quarter 2026 revenue of $50.3 million — representing a 42% climb from the $35.3 million recorded during the same quarter of 2025. Following the announcement, GEMI shares surged as much as 30% in extended trading Thursday evening, peaking at $4.92, despite remaining 47% below their year-to-date starting point.

The standout performance wasn’t fueled by cryptocurrency transactions, but rather by the company’s credit card operations.

Revenue from Gemini’s credit card division reached $14.7 million during the first quarter — representing a dramatic 300% increase from the corresponding period last year. The broader services and interest income category, encompassing staking operations and custody services, expanded 120% year-over-year to $24.5 million. This segment now accounts for approximately half of the company’s overall revenue.

Gemini Space Station, Inc. Class A Common Stock, GEMI

Consumer Finance Products Drive Revenue Shift

While transaction revenue remained steady at $24 million, the composition beneath that figure changed significantly. Revenue from the primary cryptocurrency exchange operations totaled $17.2 million — representing a 27% decline year-over-year. Trading volumes contracted to $6.3 billion from $13.5 billion in Q1 2025, reflecting broader market headwinds in the digital asset space.

The company’s pivot into consumer financial products began in 2021 with the introduction of its credit card offering. Half a decade later, that strategic decision is delivering substantial returns.

However, operational costs also saw significant expansion. Overall expenses increased 73% to $144.5 million during the quarter, propelled by higher compensation costs, marketing expenditures, and credit card-related expenses. The company recorded a net loss of $109 million alongside an adjusted EBITDA loss approaching $60 million.

The Winklevoss twins also provided capital support through a $100 million investment via their Winklevoss Capital Fund, executed in Bitcoin, receiving 7.1 million common stock units in return.

Prediction Market Gains Traction

In a first for the company, Gemini shared performance data for its prediction market platform, which went live in December. The offering has facilitated over 100 million contract trades since inception, attracting more than 20,000 active participants. The segment generated $400,000 in revenue — a modest figure, though the company noted April activity increased 78% compared to March.

For perspective, established prediction market platforms such as Kalshi and Polymarket typically record daily volumes ranging from $300,000 to $500,000.

During April, Gemini secured a Derivatives Clearing Organization license from the Commodity Futures Trading Commission. This designation places it among a select group of crypto-focused platforms holding both Designated Contract Market and DCO licenses. The DCO authorization enables Gemini to manage settlement processes, collateral requirements, and risk management for derivatives products internally.

President Cameron Winklevoss emphasized that revenue diversification will “only accelerate” as the platform transitions toward becoming a “full-stack, end-to-end marketplace” offering crypto trading, futures, options, and prediction markets.

As a point of comparison, Coinbase reported Q1 revenue of $1.41 billion — though this represented a 31% year-over-year decline — alongside a net loss of $394 million.

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