And
. We'll write: Gemini reported a net loss of $107.7 million for the second quarter of 2026, even as total revenue rose 37% year over year to $45.5 million. The exchange's core trading business kept shrinking — exchange revenue fell 38% to $12.5 million — while services revenue jumped 149% to $23.5 million.
Services and cards take over
The shift is stark. Services revenue now makes up more than half of the top line, and the credit card business is the engine. Credit card revenue surged 231% to $16.2 million, and managed receivables more than doubled to $219.6 million from $93.5 million a year earlier. That's a different company than the one that relied on trading fees. For context, Coinbase said subscription and services made up about 44% of net revenue in Q1 2026.
Costs climb, losses mount
Operating expenses rose 24% to $122.4 million. Transaction losses hit $20.1 million, including a $16.1 million provision tied to an identity-fraud cohort in the credit card portfolio. Adjusted EBITDA swung to a $74.0 million loss, driven largely by realized and unrealized losses on bitcoin from a May 2026 private placement.
The IPO's compensation bill
Salaries and compensation totaled $48.2 million, with $20.3 million of that in stock-based compensation tied to the IPO. That's a big chunk of the expense line, and it's not going away entirely.
The credit card push is clearly the growth story, but it's also where the fraud losses are coming from. Whether Gemini can keep that business expanding without more CECL provisions will be the question for the back half of the year.
Gemini reported a net loss of $107.7 million for the second quarter of 2026, even as total revenue rose 37% year over year to $45.5 million. The exchange's core trading business kept shrinking — exchange revenue fell 38% to $12.5 million — while services revenue jumped 149% to $23.5 million.
Services and cards take over
The shift is stark. Services revenue now makes up more than half of the top line, and the credit card business is the engine. Credit card revenue surged 231% to $16.2 million, and managed receivables more than doubled to $219.6 million from $93.5 million a year earlier. That's a different company than the one that relied on trading fees. For context, Coinbase said subscription and services made up about 44% of net revenue in Q1 2026.
Costs climb, losses mount
Operating expenses rose 24% to $122.4 million. Transaction losses hit $20.1 million, including a $16.1 million provision tied to an identity-fraud cohort in the credit card portfolio. Adjusted EBITDA swung to a $74.0 million loss, driven largely by realized and unrealized losses on bitcoin from a May 2026 private placement.
The IPO's compensation bill
Salaries and compensation totaled $48.2 million, with $20.3 million of that in stock-based compensation tied to the IPO. That's a big chunk of the expense line, and it's not going away entirely.
The credit card push is clearly the growth story, but it's also where the fraud losses are coming from. Whether Gemini can keep that business expanding without more CECL provisions will be the question for the back half of the year.
