Shares in Gemini Space Station (GEMI +9.41%) declined by more than 23% in a confusing week for shareholders. The company released its fourth-quarter earnings, which were in line with what management had already told investors it estimated they would be a month earlier. However, the damage was done the day before the earnings release thanks to an analyst downgrade.
A mixed week for Gemini Space Station
Given the rarity of Wall Street analysts giving sell recommendations, when an analyst at a heavyweight company like Citi issues one, then the market takes notice. The analyst's concerns about profitability are justified, not least because the company remains loss-making. With cryptocurrencies under pressure (Bitcoin and Ethereum are both down more than 20% in 2026 as I write), it's hard to see the company making a near-term quantum leap in profitability.
NASDAQ: GEMI
Key Data Points
Gemini Space Station earnings
The company is struggling to grow transaction revenue, as falling cryptocurrency prices tend to discourage trading. Overall transaction revenue declined 17% in the fourth quarter of 2025 compared to the same period in 2024, and by more than 1% to $98 million for the full year.
However, its full-year services revenue grew from $30.1 million in 2024 to $64.6 million in 2025, led by a near-tripling in credit card revenue to $33.1 million. As such, total revenue grew by 26% to $179.6 million. However, a massive increase in operating expenses from $308 million to $525 million, and total "other income" items generated a $243 million loss for the full-year helping take the company to a whopping $583 million net loss for 2025.
Image source: Getty Images.
The other income items include loan-related losses, loan interest expense, and unfavorable changes in loan value. As a reminder, Gemini Space Station, run by the management team of Cameron and Tyler Winklevoss, "regularly enters into lending agreements with Winklevoss Capital Fund, LLC ("WCF"), a related party through common ownership," according to the company's SEC filings.
The stock may interest cryptocurrency bulls, but for most other investors, it's probably worth avoiding.
