Gemini Shares Pop 6% as Q4 Performance Overshadows Job Cuts

• Gemini shares rose 6 percent after hours as Q4 revenue climbed 39 percent and beat estimates
• Credit card growth and fee changes lifted revenue even as trading volumes declined
• Job cuts reached 30 percent in 2026 as Gemini doubled down on AI and US expansion

Shares of crypto exchange Gemini rose after hours Thursday after stronger fourth-quarter revenue beat expectations, even as the company posted a deeper quarterly loss. The stock closed regular trading near $6, then climbed as much as 14% to $6.83 before settling at $6.36, up 5.8%, according to Google Finance data.

The earnings reaction reflected investor focus on top-line improvement, not headcount cuts, as fourth-quarter revenue reached $60.3 million, up 39% from a year earlier. That figure topped analyst expectations of $51.7 million and marked the company’s highest quarterly revenue in three years, the Winklevoss brothers told shareholders. It was the exchange’s second earnings report since September’s listing, offering investors an early look at how management is reshaping operations.

Revenue Growth Stands Out Despite Weaker Volumes

The company said credit card adoption and a reworked fee structure helped lift revenue, even though trading volumes fell during the quarter. Executives described the fee changes as deliberate work completed through the back half of the year, allowing more revenue to flow from existing activity.

Besides, management added that the revenue increase came as market activity weakened, showing that pricing changes and card usage offset softer transaction demand. Regardless, the quarter still ended with a net loss of $140.8 million, wider than the $27 million loss recorded in the same period a year earlier.

For full-year 2025, losses totaled $585 million, compared with $156.6 million in 2024, showing that stronger revenue has not yet restored profitability. That mix mattered as transaction-heavy businesses often struggle when volumes contract, yet the period still produced the strongest revenue print in three years.

The results arrived during a broader late-2025 crypto downturn, when Bitcoin fell sharply after reaching an October peak above $126,000. That backdrop made the revenue beat more notable as it came during weaker market conditions, not during a broad market recovery.

AI-Driven Cuts Reshape the Workforce

Earlier this year, Gemini said it would leave the UK, the European Union, and Australia, citing difficult market conditions. It also disclosed plans to reduce staff by 25%, partly because of artificial intelligence, before later saying workforce cuts had reached roughly 30% since January. The retreat from overseas markets narrowed the firm’s geographic reach while reducing costs and concentrating resources on its domestic growth plan.

In the shareholder letter, the founders said AI now supports more than 40% of production code changes and could approach full coverage over time. Management also said the company would focus and double down on the United States, pointing to a more supportive stance from US crypto regulators.

Prediction Markets and Cards Lead the 2026 Plan

In December, Gemini launched Gemini Predictions across all 50 US states after securing a license from the Commodity Futures Trading Commission. The company said it would refine the prediction market, scale the credit card business, and expand the exchange alongside that push. Management framed both businesses as near-term priorities for 2026, with prediction products positioned beside the card as core expansion areas.

Executives said the longer-term plan is to use the same market infrastructure for perpetual futures if US approval is granted. That strategy signals a broader repositioning toward market products while keeping payments and exchange activity as major revenue lines.

Related: BTQ Technologies Deploys BIP 360 Testnet to Shield Bitcoin From Quantum Threats

Lawsuit adds pressure after the post-IPO slide

The earnings release landed the same day shareholders filed a proposed class-action lawsuit in Manhattan federal court against Gemini and senior executives. Plaintiff Marc Methvin alleged IPO materials presented the business as a growing exchange expanding internationally, while the company later pivoted toward prediction markets.

The case adds another challenge for a newly public company already navigating weaker crypto prices and a sharp decline in its shares. The exchange went public in September at $28 a share, later touched $40, and then dropped more than 80% to about $6 on Thursday.

The complaint seeks damages for investors who bought shares at what it describes as artificially inflated prices after the initial public offering. Thursday’s after-hours rally followed the revenue surprise, while the company still faces rising losses, a smaller workforce, and active litigation.