GEMI Stock Gains After Company Hits 3-Year Revenue High Despite Lawsuit, Layoffs And Earnings Miss

• While Q4 revenue increased almost 40% from the previous year, losses widened to $140.8 million from $27 million. 
• For the full year, Gemini posted a loss of $585 million, which included unrealized losses on its crypto holdings.
• In a letter to shareholders, the Winklevoss twins said they were not ‘dispirited’ by GEMI’s stock performance and that they welcome feedback.

Shares of Gemini Station Space (GEMI) gained in early morning trade on Friday despite missing fourth quarter earnings estimates after the company reported the highest quarterly revenue it has seen in three years.

GEMI’s stock rose as much as 6% in pre-market trade, but retail sentiment on Stocktwits around the cryptocurrency exchange remained in ‘bearish’ territory over the past day.

Led by the Winklevoss twins, Tyler and Cameron Winklevoss, Gemini reported a loss of $1.22 per share in the fourth quarter (Q4), higher than the estimated loss of $0.96 per share, according to Koyfin data. Revenue came in at $52 million, beating Wall Street’s average estimate of $47 million. 

While Q4 revenue increased almost 40% from the previous year, losses widened to $140.8 million from $27 million. For the full year, Gemini posted a loss of $585 million, which included unrealized losses on its crypto holdings.

Shareholders Are Not Happy With GEMI Stock Performance

Gemini’s earnings come just a day after shareholders filed a class-action lawsuit against the company and the Winklevoss twins, accusing it of fraud. According to the filing, the shareholders said that they were not clearly informed about Gemini’s business prospects and that the stock has taken a hit due to the company’s decision to pivot strategy, cut jobs, and let go of senior executives.

Gemini was among the slew of cryptocurrency companies that went public in 2025 near the peak of the bull market. Debuting in September last year, GEMI’s stock is down over 80% since its IPO.

In addition to facing a crypto winter, Gemini added prediction markets to its docket and announced last month that it would be cutting 25% of its workforce. It also said that its chief executive officer, chief financial officer, and chief legal officer were “parting ways.” According to the lawsuit, these decisions have weighed on GEMI’s stock, and the “abrupt corporate pivot” was not disclosed to shareholders. 

Winklevoss Twins Are Not ‘Dispirited’ 

In a letter to shareholders, the Winklevoss twins disclosed that Gemini’s workforce has shrunk by nearly 30% since the start of 2026. “In addition to reducing the size of our workforce, we have reduced the areas in which we operate by exiting the UK, EU, and Australian markets,” they wrote. “We expect this will help reduce our total expenses in line with our headcount reduction and meaningfully accelerate our path to profitability, even in the backdrop of the current crypto market.”

Noting the GEMI stock’s drop over the last 6 months, the twins said they were not “dispirited,” but motivated to build better. “While it’s never fun to see your stock drop, we love the feedback loop. It forces us to confront what is working and what is not working.”

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