Gemini's first financial report after the IPO shows a 52% surge in revenue, but its stock still fell to a historic low.

PANews November 11 News, according to The Block, cryptocurrency exchange Gemini announced its first quarterly financial report since its September IPO. Driven by a rebound in trading and expanded revenue from new products, its revenue increased by 52% quarter-over-quarter. In the third quarter, net income rose to nearly $50 million, supported by over $26 million in trading fees and approximately $20 million in service income (including record-breaking credit card performance and expanded institutional staking business). However, the company still recorded a net loss of $159.5 million, mainly due to IPO-related stock compensation and marketing expenses. Adjusted EBITDA was negative $52.4 million. Trading volume reached $16.4 billion, up 45% quarter-over-quarter, with institutional trading increasing nearly 50%. Gemini’s credit card accounts exceeded 100,000, with spending surpassing $350 million, doubling from the previous quarter, and staking balances reaching $741 million. Currently, service income accounts for nearly 40% of total revenue, up from less than 30% a year ago.

Gemini stated that after the IPO, the company repaid debt and established a $150 million credit line for its credit card receivables to improve capital efficiency. The company expects service and interest income for the full year to reach $60 million to $70 million, with continued growth in credit card and staking products. Despite strong performance, GEMI’s stock price fell over 11% in after-hours trading, dropping below $15 to a record low, due to investor concerns over widening losses and IPO-related costs.