Gemini shares moved higher in after-hours trading on Thursday as investors reacted to the company’s shift towards more stable revenue streams and new market offerings.
The stock gained around 7% to $6.45 after closing at $6.01, signalling investor confidence despite weaker trading activity.
Market participants appeared to focus on the company’s improving revenue mix and cost-cutting strategy rather than declining transaction volumes.
Gemini reported fourth-quarter trading volume of $11.5 billion, marking a 30% drop from the previous quarter as overall crypto market activity slowed.
Despite the fall in volume, transaction revenue remained relatively stable due to revised fee structures and increased use of premium retail trading options.
The company highlighted a major milestone as services and interest income exceeded transaction revenue for the first time during the quarter.
Services revenue rose by 33% quarter-on-quarter to reach $26.5 million, driven by growth in its credit card business and stronger user engagement.
Over the full year, services revenue more than doubled, contributing to a 26% rise in total revenue to $179.6 million.
However, Gemini still recorded a net loss of $582.8 million for 2025, reflecting ongoing operational challenges.
The company has been repositioning itself beyond a traditional crypto exchange model to reduce reliance on trading activity.
In December, Gemini launched a regulated prediction markets platform after securing a Designated Contract Market licence from the Commodity Futures Trading Commission.
The platform allows users to trade contracts based on real-world outcomes, including crypto prices, politics, and sports events.
Since its launch, more than 15,000 users have participated in trading across multiple categories, according to the company.
"From politics to economic indicators, business, tech, culture, and sports, prediction markets are forecasting the future more accurately and more quickly than traditional pollsters, experts, and media," Gemini said. "This is a profound change in the world’s source of truth and an equally profound solution to the loss of trust in our institutions and resulting epistemological crisis,"
Gemini said.
Gemini stated that the prediction markets product introduces a new source of transaction revenue that is less dependent on crypto market cycles.
The company is also facing a class-action lawsuit alleging it failed to disclose its plans to enter prediction markets in its initial public offering filings.
Meanwhile, its credit card segment has expanded rapidly, with transaction volumes surpassing $1.2 billion in 2025 and revenue rising significantly year-on-year.
Gemini has implemented cost-cutting measures, including reducing its workforce by roughly 30% to streamline operations.
The firm is also withdrawing from several international markets such as the UK, EU, and Australia to concentrate on its United States operations.
The restructuring efforts aim to lower expenses and accelerate the path to profitability as the company builds new products to boost user engagement.
Investors appear to be backing the strategy, expecting that a broader revenue base could reduce reliance on volatile crypto trading conditions.