Gemini Space Station, Inc. Class A Common Stock Q3 FY2025 earnings call

• Expanding regulated global footprint: Received MiCA license in Europe, launched in Australia, and engaged with MAS in Singapore for full MPI license.
• Scaling crypto adoption through everyday spending: Gemini Credit Card had over 100,000 open accounts and over $350 million in quarterly transaction volume, more than doubling QoQ.
• Deepening trading activity and diversifying revenue mix: Spot volumes surged, OTC business expanded, and services revenue became a larger portion of total revenue.
• Enabling secure onchain access: Launched Gemini Wallet, Solana staking from custody, and tokenized stocks in Europe.
• Enhancing capital efficiency and balance sheet strength: Paid down debt, established a $150 million credit facility for credit card receivables.

In Q3, Gemini's spot trading volumes reached $16.4 billion, up 45% quarter-over-quarter. Institutional spot volumes were $14.6 billion, up 49% QoQ, and retail spot volumes were $1.8 billion, up 20% QoQ. Services revenue totaled $19.9 million, with credit card revenue at $8.5 million, driven by user growth and higher spend per active cardholder. Staking revenue was $5.9 million, reflecting Solana staking in the U.S. and price appreciation. Services revenue, including credit card, custody, and staking, accounted for nearly 40% of total revenue in Q3, up from less than 30% a year prior.

• Expect services revenue and interest income (including staking, custody, and Gemini Credit Card) to reach $60 million to $70 million in fiscal 2025.
• Technology and G&A expenses are expected to total between $140 million and $155 million for fiscal 2025.
• Marketing expenses are预计 to be $45 million to $60 million for full year 2025, a meaningful step-up to lean into growth post-IPO.
• Monthly transacting users are expected to grow at a 20% to 25% compound rate over the medium term.

• Risks related to regulatory changes that could impact operations in global markets.
• Market volatility affecting crypto prices and trading volumes, which could impact revenue and user engagement.

Q: Dan Dolev of Mizuho asked about the new product roadmap and super app planning.

A: Cameron Winklevoss responded that Gemini is building towards a super app, having launched a self-custodial smart wallet, working on tokenized equities, stablecoins, and digital commodities within one app. Also mentioned an upcoming small business card and prediction markets with an application with the CFTC for a Designated Contract Market.

Q: Michael Cyprys of Morgan Stanley inquired about card business drivers and losses.

A: Daniel Chen stated losses were low, reflecting credit discipline and denominator effect; credit team focuses on underwriting and using technology to mitigate losses. Marshall Beard discussed Solana card launch and auto-staking driving user engagement with other products.

Q: James Yaro of Goldman Sachs asked about medium-term monthly transacting user guidance.

A: Daniel Chen said growth drivers include continued customer acquisition via credit card and increased engagement of existing users through platform capabilities and product additions.

Q: Peter Christiansen of Citi asked about exchange institutional volume attribution.

A: Marshall Beard noted growth in institutional volume was due to sales and business development team engaging with new trading firms and competitive fee rates.

Q: John Todaro of Needham asked about card competition and trading volume trends.

A: Tyler Winklevoss and Cameron Winklevoss mentioned competition validates their position, with the card having no annual fee and being an acquisition tool. Marshall Beard said trading volume shifts were due to price appreciation, not customer profile changes.

Q: Chris Brendler of Rosenblatt Securities asked about card growth attribution and staking pricing.

A: Marshall Beard said card growth will continue as new cardholders use exchange products. Staking take rates were adjusted from 15% to 25%, but no material changes to credit card take rates yet.